Overcooked: Private-label competition is heating up and causing revenue to spiral downwards

Pasta is considered a staple food for many Australians. However, strong competition from private-label products has hurt producers of branded pasta over the past five years. Furthermore, imports have continued to flood the market, which has negatively affected local producers. Industry players have fought back with heavy brand promotion and product development in an attempt to stimulate consumer interest in locally made pasta. Industry revenue is projected to grow at an annualised 0.2% over the five years through 2017-18, to reach $667.0 million. However, this includes a forecast 0.5% decline in 2017-18, largely due to price-cutting tactics and heavy discounting by the major supermarkets...read more.

Industry Statistics & Market Size
Revenue
$667m
Annual Growth 13-18
0.2%
Forecast Growth 18-23
Profit
Employment
1,309
Businesses
128

Industry Threats & Opportunities

  • Strong competition from private-label products has hurt producers of branded pasta
  • Major industry players have launched new product ranges to target niche consumer markets
  • Producers will need to increasingly invest in product innovation to remain competitive
  • Industry Report - Industry Locations Chapter

    Pasta producers are mainly concentrated along the eastern seaboard. New South Wales and Victoria account for the largest shares of pasta producers, supported by the large customer base in these states. Locations in these states ensure that transportation costs can be minimised. However, competition from other states, together with declining transport costs, have led these states to decline as a share of industry business locations over the past five years. South Australia and Queensland account for the third- and fourth-largest shares of industry operators respectively. South Australia's share is aided significantly by the presence of the industry's largest manufacturer, San Remo. ...purchase to read more.

    Additional Insights for the Pasta Production Industry

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

  • Economies of scale
  • Establishment of brand names
  • Guaranteed supply of key inputs
  • IBISWorld analysts also discuss how external factors such as Domestic price of wheat and Demand from supermarkets and grocery stores in the Pasta Production industry impact industry performance..

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    What's in this report

    What is the Pasta Production Industry?

    The industry manufactures fresh perishable pasta dishes and dry pasta products after purchasing ingredients from other food manufacturers. The end products are packaged and distributed to grocery wholesalers, supermarkets and other food outlets. The industry does not include noodle production.

    Industry Products
  • Long dry pasta
  • Short dry pasta
  • Stuffed fresh pasta
  • Other fresh pasta
  • Industry Activities
  • Dried pasta production
  • Fresh pasta production
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Domestic price of wheat
  • Demand from supermarkets and grocery stores
  • Real household disposable income
  • Consumer sentiment index
  • Demand from cafes, restaurants and takeaway food services

  • Current Performance
  • Competitive pressures
  • Food fight
  • Smaller players
  • Inputs and structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Continued competition
  • Product development
  • Industry structure
  • Table: Pasta Production Industry Revenue Outlook

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

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

  • Key Selling Industries
  • Flour and Grain Mill Product Manufacturing
  • Fruit and Vegetable Wholesaling
  • Meat, Poultry and Smallgoods Wholesaling

  • Products & Services
  • Long dry pasta
  • Short dry pasta
  • Stuffed fresh pasta
  • Other fresh pasta
  • Chart: Pasta Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Supermarkets and grocery stores
  • Grocery wholesalers
  • Food-service providers
  • Other domestic markets
  • Export markets
  • Chart: Major Market Segmentation for the Pasta Production 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 Pasta Production

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Pasta Production Industry

  • Industry Globalization
    Clearlight Investments Pty Limited, General Mills Holding (Australia) Pty Ltd, Rinoldi Pasta Pty Ltd,
  • Table: Clearlight Investments Pty Limited - financial performance
  • Table: General Mills Holding (Australia) Pty Ltd - financial performance
  • Table: Rinoldi Pasta Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Pasta Production 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 Pasta Production Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Premiumisation
  • A growing trend among consumers whereby they demand high-quality, premium products across a wide variety of products.
  • Private-Label
  • A product purchased from a contracted manufacturer by a retailer or supplier, and sold under the brand name of the retailer or supplier, not the manufacturer.
  • Semolina
  • The coarse flour remaining after the milling of wheat, which is commonly used to make pasta.
  • What Our Customers Say

    Why buy this report?

    The Pasta Production market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

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

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