Australia Food and Drink Report Q4 2014

Australia Food and Drink Report Q4 2014

Published: August 2014
Publisher: BMI Research
Product ref: 219705
Pages: 123
Format: PDF
Delivery: Immediate download

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We maintain our outlook for Australia's real GDP growth to slow in 2014 to 2.0% from 2.4% in 2013, as we
believe that economy will struggle to find other growth drivers in the face of an ongoing decline of private
investment in the mining sector. High levels of household debt, threats of higher taxes, softening job market
and income outlook, together with possible declines in house prices lead us to maintain our subdued outlook
for private consumption for 2014. We forecast this expenditure component to grow at 1.3% compared to
growth rates of 2.0% and 2.5% respectively in 2013 and 2012. As a result, we continue to see a shift of
consumption habits towards private labels in Australia over the coming years as a growing number of
consumers acknowledge private labels as a very compelling alternative to proprietary branded goods.

Headline Industry Data (local currency)

¦ 2014 per capita food consumption = +0.8%; forecast to 2018 = +1.3% compound annual growth rate

¦ 2014 soft drinks sales = +2.1%; forecast to 2018 = +2.6% CAGR.

¦ 2014 alcoholic drinks sales = +1.9%; forecast to 2018 = +2.4% CAGR.

¦ 2014 mass grocery retail sales = +3.4%; forecast to 2018 = +4.3%.

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By sector: General drinks

By market: Australia (in Oceania)

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