Cheesed off: Strong competition from supermarkets has forced industry exits

Strong competition from the major supermarkets has created unfavourable trading conditions for the Delicatessens industry over the past five years. The low prices that the major supermarkets offer across numerous product lines have enticed consumers away from specialised retailers. However, an increasing preference for premium foods among some consumers has supported industry demand. Overall, industry revenue is expected to grow at an annualised 0.1% over the five years through 2017-18, to reach $895.8 million. Industry revenue is expected to grow 1.0% in 2017-18, due to a projected rise in per capita meat consumption.Supermarkets and grocery stores are the industry's main competitors...read more.

Industry Statistics & Market Size
Revenue
$896m
Annual Growth 13-18
0.1%
Forecast Growth 18-23
Profit
Employment
5,434
Businesses
2,050
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • An increasing preference for premium foods among some consumers has supported industry demand
  • Delicatessen operators have had to contend with rising input prices over the past five years
  • Delicatessens that try to compete with the major supermarkets are likely to struggle
  • Industry Report - Starting a New Business Chapter

    Potential industry players face moderate barriers to entry. The industry is not overly difficult to enter from a capital and knowledge-based perspective. Initial outlays include costs involved in locating and obtaining working premises, and a wholesaler or other supplier from which produce can be sourced. However, due to the specialised nature of industry products, with many products being sold fresh, or with a short shelf life, potential entrants will likely need to invest in commercial refrigeration. Specific culinary knowledge may also be required by certain store staff to assist with the proper selection of foods.Entry barriers are expected to grow over the next five years. As ...purchase to read more.

    Additional Insights for the Delicatessens Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Delicatessens Industry are

  • Ability to attract local support/patronage
  • Easy access for clients
  • Having a good reputation
  • IBISWorld analysts also discuss how external factors such as Real household disposable income and Demand from supermarkets and grocery stores in the Delicatessens industry impact industry performance..

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    What's in this report

    What is the Delicatessens Industry?

    Industry firms retail specialty meats, cheeses, bread and other products, which are often sold by weight.

    Industry Products
  • Meats
  • Cheeses
  • Breads
  • Gourmet foods
  • Industry Activities
  • Smallgoods retailing
  • Cheese retailing
  • Olive retailing
  • Gourmet foods retailing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Real household disposable income
  • Demand from supermarkets and grocery stores
  • Domestic price of meat
  • Meat consumption
  • Domestic price of milk

  • Current Performance
  • Supermarket competition
  • Price pressure
  • Premium foods
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Premium products
  • Supermarket pressure
  • Culinary experiments
  • Table: Delicatessens Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Delicatessens Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Bakery Product Manufacturing
  • Cheese Manufacturing
  • Meat Processing
  • Meat, Poultry and Smallgoods Wholesaling

  • Products & Services
  • Meats
  • Cheeses
  • Gourmet foods
  • Breads
  • Other
  • Chart: Delicatessens Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers in the highest income quintile
  • Consumers in the fourth income quintile
  • Consumers in the middle income quintile
  • Consumers in the second income quintile
  • Consumers in the lowest income quintile
  • Chart: Major Market Segmentation for the Delicatessens Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Rent
  • Depreciation, utilities and other
  • Chart: Cost Structure Benchmarking – Sector vs Delicatessens

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Delicatessens Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Delicatessens 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 Delicatessens Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Charcuterie
  • A cooked meat that is served cold, such as ham. These products are common in delicatessens.
  • Delicatessen Items
  • Products commonly sold by delicatessens, including smallgoods, breads, cheeses and olives.
  • Smorgasbord
  • A wide selection of foods served together, including sandwiches, meats, cheese and other delicacies.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Delicatessens market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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 Delicatessens:
    • 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 Delicatessens 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 Delicatessens, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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