Growing up fast: Strong demand from Asian markets is driving industry growth

The Baby Food Manufacturing industry's performance has been driven by strong demand for nutrient-added and organic products over the past five years. Industry operators have successfully captured rising demand for these products in both domestic and global markets. Strong overseas demand, particularly from Asia, for safe and high-quality Australian baby food has driven robust industry growth over the period. However, the baby food market has also expanded to include private-label sales through Woolworths and ALDI, which has intensified market competition. Industry revenue is expected to rise at an annualised 5.8% over the five years through 2018-19, to $184.3 million. This includes forecast revenue growth of 3.1% in the current year...read more.

Industry Statistics & Market Size
Revenue
$184m
Annual Growth 14-19
5.8%
Forecast Growth 19-24
Profit
Employment
416
Businesses
46

Industry Threats & Opportunities

  • Strong demand from Asia for high-quality Australian baby food has driven industry growth
  • The organic baby food product segment has grown strongly, reflecting other food market trends
  • Demand for high-value foods from busy parents is expected to drive industry revenue growth
  • Industry Report - Industry Key Buyers Chapter

    The Baby Food Manufacturing industry is highly concentrated, as the industry's four largest players account for over 85% of revenue. The three largest players, Heinz, Rafferty's Garden and Bellamy's Australia dominate the industry. However, smaller manufacturers such as Nestle Australia that produce premium and niche baby food products also compete in the industry.Over the past five years, the expansion of Bellamy's Australia and Rafferty's Garden have eroded market share for Heinz. Market share concentration still remains high due to the low number of enterprises involved in the industry and the significant innovation Rafferty's brought to the industry, which allowed it to leapfrog many already involved. Fur...purchase to read more.

    Additional Insights for the Baby Food Manufacturing Industry

    IBISWorld has determined the most important Key Success Factors for the Baby Food Manufacturing are:

  • Ability to quickly adopt new technology
  • Having a wide and expanding product range
  • Quality product exposure
  • IBISWorld analysts also discuss how external factors such as Females in the labour force and Number of births in the Baby Food Manufacturing industry impact industry performance..

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    What's in this report

    What is the Baby Food Manufacturing Industry?

    Industry firms manufacture wet and dry baby food. Industry products include baby meals, cereals, juices, drinks, biscuits and milk. The industry excludes milk formula.

    Industry Products
  • Wet infant food packed in pouch-and-spout containers
  • Wet infant food packed in jars and cans
  • Infant cereals
  • Infant snacks
  • Industry Activities
  • Baby food puree
  • Baby food custard
  • Baby food gel and jelly
  • Baby food snack
  • Baby food cereal
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Females in the labour force
  • Number of births
  • Health consciousness
  • Real household disposable income
  • Trade-weighted index

  • Current Performance
  • Changing products
  • Organic growth
  • International influence
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Gourmet ranges
  • International reach
  • Consolidation increases
  • Table: Baby Food Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Baby Food Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • General Line Grocery Wholesaling
  • Supermarkets and Grocery Stores

  • Key Selling Industries
  • Apple, Pear and Stone Fruit Growing
  • Dairy Cattle Farming
  • Organic Farming
  • Plastic Bag and Film Manufacturing

  • Products & Services
  • Wet infant food packed in jars and cans
  • Wet infant food packed in pouch-and-spout containers
  • Infant snacks
  • Infant cereals
  • Chart: Baby Food Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Major supermarket chains
  • Other retailers
  • Other supermarket and grocery stores
  • Export markets
  • Chart: Major Market Segmentation for the Baby Food Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Baby Food Manufacturing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Baby Food Manufacturing Industry

  • Industry Globalization
    PZ Cussons (Holdings) Pty Ltd, Heinz Wattie's Pty Ltd, Bellamy's Australia Limited,
  • Table: PZ Cussons (Holdings) Pty Ltd - financial performance
  • Table: Heinz Wattie's Pty Ltd - financial performance
  • Table: Bellamy's Australia Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Baby Food Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Baby Food Manufacturing Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Fast Moving Consumer Goods
  • Products that are sold frequently and are priced cheaply. These products dominate supermarket and grocery stores.
  • Nutrient-Added Food
  • Food that has been enhanced through specialised growing, packaging or the addition of vitamins and or supplements to enhance the nutritional value of the food.
  • Pouch-And-Spout
  • A type of packaging for wet infant food that is made of plastic and easy to squeeze, making it easy for infants to consume food directly from the packet.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Baby Food Manufacturing market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Baby Food Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Baby Food Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Baby Food Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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