AU: Rising demand for processed fruit and veg expected
Looking ahead, the Australian Fruit and Vegetable Processing industry's performance will be contingent on population growth, import competition, acceptance of private labels, weather patterns and horticulture input prices. “Competition will continue to rise as imports increase and account for a higher percentage of domestic demand”, Sivasailam adds. Greater acceptance of private labels is expected to continue as supermarkets pursue aggressive promotional activities and consumers increasingly accept these products as economical alternatives to branded products. These factors are expected to lead to lower prices and lower revenue for fruit and vegetable manufacturers as branded products are discounted to gain market share and maintain demand.
However, some processors are expected to introduce new value-added products, which may mitigate the downward pressure on prices for some manufacturers. Rising health consciousness and increased vegetable consumption over the next few years is expected to boost demand for the industry's products in general. Busier lifestyles will bode well for convenience-based foods such as frozen fruit and vegetables and soups. The Australian industry has a medium level of market share concentration. Over half of the producers engaged in fruit and vegetable processing have revenue of over $200,000. The four largest players in the industry are Heinz Wattie’s, Simplot Australia, Coca-Cola Amatil and McCain Foods.
Source: timesunion.com
