Industry market research report
Australian fruit, vegetable retail has weathered difficult trading conditions
Industry retailers have faced a difficult operating landscape over the past five years. Rising industry competition and price discounting by supermarkets have eroded revenue from an already fickle industry. As a result, sales and market shares for smaller speciality retailers have declined, as larger supermarkets have expanded their product lines to incorporate more exotic fruit and vegetables. “While growth in disposable incomes has boosted the spending power of consumers, demand for fruit and vegetables has been affected by fluctuations in consumer sentiment,” says Burgio-Ficca. The industry is characterised by a medium level of concentration. Major players Woolworths Ltd and Wesfarmers Limited each wield a considerable amount of market share.
Demand and supply trends will remain vulnerable to seasonal weather patterns and industry operators are expected to source produce from different suppliers in a bid to meet constant consumer demand for quality and affordable goods. Heightened competition from supermarkets and other grocery stores seeking a larger share of the market is likely to squeeze smaller players out of the Fruit and Vegetable Retailing industry. However, rising social awareness about the importance of incorporating the recommended number of fruit and vegetable serves as part of a healthy diet is likely to drive demand and consumption over the next five years.
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