Cutting it fine: Premium goods sustain revenue growth despite stiff competition from supermarkets

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 drawn 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 increase at an annualised 0.3% over the five years through 2018-19, to $933.5 million. This includes anticipated growth of 0.5% in 2018-19, due to an expected rise in per capita meat consumption.Supermarkets and grocery stores are the industry's main competitors. Heavy price cutting by the major supermarkets has drawn consumers away from specialised retailers...read more.

Industry Statistics & Market Size
Revenue
$934m
Annual Growth 14-19
0.3%
Forecast Growth 19-24
Profit
Employment
5,428
Businesses
2,053
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 faced rising input prices over the past five years
  • Delicatessens that try to compete with the major supermarkets are forecast to struggle
  • Industry Report - Industry Locations Chapter

    Most Delicatessens industry operators are located across the three most populous states: New South Wales, Victoria and Queensland. This distribution is due to the retail nature of the industry, which requires delicatessens to be located close to consumers. These three states account for nearly 80% of industry operators, only slightly higher than the 77.7% of the population residing in these three states.Other states and territories have a relatively low share of delicatessens, especially as competition from supermarkets and retail establishments continues to put pressure on industry operators. Delicatessens that are well-established local businesses with access to high store traffic have remained competitive over the past five years. Con...purchase to read more.

    Additional Insights for the Delicatessens Industry

    IBISWorld has determined the most important Key Success Factors for the Delicatessens 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. The industry excludes sales of deli-style products at major supermarkets.

    Industry Products
  • Meats
  • Cheeses
  • Breads
  • Gourmet foods
  • Other products
  • 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 products
  • 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
  • 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 (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • 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.
  • Point-Of-Sale Systems
  • Computerised technology used at check-out points in retail stores to capture data at the time and place of sale.
  • 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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