Private party: Competition from supermarket private labels constrains revenue growth

Demand for prepared meals has increased over the past five years, as busy lifestyles have reduced the time many consumers have to cook for themselves. Time-poor consumers, especially those living alone, have continued to favour convenient and competitively priced goods. A growing preference for premium goods has also helped boost the appeal of industry products, increasing the popularity of low-fat prepared meals and high-value, pre-cooked and pre-marinated meat varieties.Despite these favourable conditions, the Prepared Meals Production industry has struggled over the past five years. Industry revenue is expected to increase at an annualised 0.3% over the five years through 2018-19, to $657.7 million. This includes anticipated growth of 0.1% in the current more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Industry revenue growth has been subdued over the past five years due to strong price competition
  • Rising demand from time-poor consumers has benefited the industry over the past five years
  • Gluten-free, vegan and non-dairy prepared meal options are projected to become more popular
  • Industry Report - Industry Locations Chapter

    Prepared meal producers are typically located near highly populated areas. This is due to the perishability of food and the high cost of refrigerated transport. Producers that locate themselves closer to customers reduce costs associated with wasted food and long-distance transport. Consequently, 81.9% of producers are located in New South Wales, Victoria and Queensland, which combined are home to more than 77.0% of the nation's population.Another factor dictating producers' locations is their proximity to ingredients. Many agricultural businesses are located along the east coast of Australia. This explains the high number of producers in Queensland, New South Wales and Victoria, relative to their populations. Pro...purchase to read more.

    Additional Insights for the Prepared Meals Production Industry

    IBISWorld has determined the most important Key Success Factors for the Prepared Meals Production are:

  • Ability to alter goods and services produced in favour of market conditions
  • Guaranteed supply of key inputs
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Demand from supermarkets and grocery stores and Real household discretionary income in the Prepared Meals Production industry impact industry performance..

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    What's in this report

    What is the Prepared Meals Production Industry?

    Industry firms primarily manufacture prepared meals, which usually require only heating for consumption. Firms cook purchased ingredients, package the final product and sell it to grocery wholesalers, supermarkets and other food outlets.

    Industry Products
  • Pasta-based prepared meals
  • Meat-based prepared meals
  • Specialty prepared meals
  • Other prepared meals
  • Industry Activities
  • Prepared meal production
  • Contract prepared meal production
  • Specialty meal production
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from supermarkets and grocery stores
  • Real household discretionary income
  • Health consciousness
  • Average weekly hours worked

  • Current Performance
  • Supermarket dominance
  • Consumer trends
  • Substitutes
  • Profit and participation
  • Chart: Revenue Growth

  • Industry Outlook
  • Product innovation
  • Ongoing competition
  • Profit and participation changes
  • International trade
  • Table: Prepared Meals Production Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Cereal, Pasta and Baking Mix Manufacturing
  • Flour and Grain Mill Product Manufacturing
  • Fruit and Vegetable Processing
  • Meat Processing
  • Tea, Coffee and Other Food Manufacturing

  • Products & Services
  • Meat-based prepared meals
  • Pasta-based prepared meals
  • Other prepared meals
  • Specialty prepared meals
  • Chart: Prepared Meals Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Highest household income quintile
  • Second household income quintile
  • Third household income quintile
  • Fourth household income quintile
  • First household income quintile
  • Chart: Major Market Segmentation for the Prepared Meals 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 Prepared Meals Production

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Prepared Meals Production Industry

  • Industry Globalization
    McCain Foods (Aust) Pty Ltd, Matchlow Pty Ltd, Simplot Australia (Holdings) Pty Limited,
  • Table: McCain Foods (Aust) Pty Ltd - financial performance
  • Table: Matchlow Pty Ltd - financial performance
  • Table: Simplot Australia (Holdings) Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Prepared Meals 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 Prepared Meals Production Industry
  • 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
    Air Fryer
  • Type of fryer that uses hot air instead of oil to fry foods.
  • Prepared Meal
  • A complete meal prepared by manufacturers that the consumer is only required to reheat without adding any ingredients.
  • Private Label
  • Products manufactured by an external manufacturer but branded by another company.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Prepared Meals Production 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:
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    • Inform your decisions for marketing, strategy and planning
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    This report on Prepared Meals 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 Prepared Meals 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 Prepared Meals Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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