Fruit and Vegetable Processing in Australia - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: August 2023
ANZSIC C1140Revenue
$6.4bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
11,423
Businesses
683
Wages
$XXX.Xm
Fruit and Vegetable Processing in Australia industry analysis
Processors are facing substantial challenges both on the supply and demand fronts, primarily caused by an acceleration in imported goods and intense pricing competition. Supermarkets’ strategy of sourcing inexpensive private-label goods from overseas manufacturers is imposing significant pressure on domestic processors, which in turn constrains industry revenue. Simultaneously, the industry is grappling with severe competition from a surge of imports generally, notably from China, that’s undercutting domestic prices. Nevertheless, changes in consumer behaviour offer some reprieve. A rising preference for ready-to-eat and health-conscious products has been driving demand. Supermarkets like Woolworths that’ve managed to tap into these trends are providing considerable assistance to industry processors. Even so, the industry's revenue is expected to fall by 2.0% this year, reaching $6.4 billion. This has contributed to an anticipated annualised dip of 0.3% over the five years through 2023-24.
Trends and Insights
- A surge in imported goods and intense competition present significant challenges for domestic processors, affecting their revenue streams. However, evolving consumer preferences are opening up new opportunities for growth and diversification.
- The sauce and condiment segment has been growing. Heightened consumer interest in diverse flavours, home cooking and expanding demand for natural and organic products have fuelled this trend.
- Proximity to high-population areas allows industry processors to lower transport costs and maintain product freshness while responding effectively to market trends. Most of these processors strategically position themselves along the eastern seaboard, in line with Australia’s population distribution.
- The industry's diverse structures and product ranges drive competition and innovation, resulting in low market share concentration. Small-scale processors align offerings with market trends and consumer preferences to target niche segments and cultivate loyalty among specific buyer groups.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has declined at a CAGR of 0.3 % over the past five years, to reach an estimated $6.4bn in 2023.
Trends and Insights
Both upstream and downstream markets challenge industry processors
- The industry is grappling with significant challenges from both supply and demand perspectives. For instance, the market is inundated with imported products, with China being the most prominent source. These products offer stiff price competition and impact the industry’s performance. This has hindered consistent revenue growth, making profitability a tall order.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to decline over the next five years.
Trends and Insights
Future industry performance relies heavily on unpredictable supply chain dynamics and technological development
- Climate change, with its fluctuating weather patterns, is reshaping pricing for the fruits and vegetables industry processors require. This impact is apparent in regions like the Murray-Darling Basin, where rising temperatures cause significant reductions in crop yield and deplete water resources. Looking forwards, the potential for milder winters and extreme summer heat could further threaten fruit production due to sunburn damage, compelling growers to adapt their farming methods and pass on higher operational costs to processors even when avoiding shortages.
Biggest companies in the Fruit and Vegetable Processing in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Simplot Australia | 1,022.4 | |
Kraft Heinz | 711.6 | |
SPC Global | 238.5 |
To view the market share and analysis for all 5 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Frozen, packaged and pickled vegetables, Sauces and condiments and Frozen, dried and shelf-stable fruit. Frozen, packaged and pickled vegetables is the largest segment of the Fruit and Vegetable Processing in Australia.
Trends and Insights
Growing consumer interest and rising ingredient costs have supported revenue from sauces and condiments
- This segment includes a range of sauces (excluding Worcestershire sauce), dips, salad dressings, marinades, pasta sauces, jams, fruit spreads and horseradish.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Fruit and Vegetable Wholesaling in Australia
- Fruit and Vegetable Retailing in Australia
- Soft Drink Manufacturing in Australia
- Fruit Juice Drink Manufacturing in Australia
International industries
- Global Fruit & Vegetable Processing
- Frozen Food Production in the US
- Canned Fruit & Vegetable Processing in the US
- Dried Fruit & Vegetable Snack Production in the US
- Pre-Made Salsa Production in the US
Table of Contents
About this industry
Industry definition
Industry operators primarily can, bottle, preserve, quick-freeze or dry fruit and vegetables. Industry products include dehydrated vegetable products, soups, sauces, pickles, mixed meat and vegetable products, and non-milk-based baby foods. The industry does not include sun-dried products.
What's included in this industry?
SoupsFrozen, dried and shelf-stable fruit Baked beans and canned spaghettiSauces and condimentsFrozen, packaged and pickled vegetablesFresh vegetable saladsNon-milk-based baby foodsVinegar (excluding wine vinegar)Companies
Simplot AustraliaKraft HeinzSPC GlobalPurchase this report to view all 5 major companies in this industry.
Related Terms
SHELF-STABLEPRIVATE-LABEL PRODUCTSADDITIVEIndustry Code
ANZSIC 1140 - Fruit and Vegetable Processing in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
A surge in imported goods and intense competition present significant challenges for domestic processors, affecting their revenue streams. However, evolving consumer preferen...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
The sauce and condiment segment has been growing. Heightened consumer interest in diverse flavours, home cooking and expanding demand for natural and organic products have fu...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2023
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Proximity to high-population areas allows industry processors to lower transport costs and maintain product freshness while responding effectively to market trends. Most of t...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The industry's diverse structures and product ranges drive competition and innovation, resulting in low market share concentration. Small-scale processors align offerings wit...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Simplot is investing heavily in its infrastructure and expanding farmland for improved efficiency and growth. Moreover, its acquisition of Agronico in 2023 strengthens its po...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Simplot Australia's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Kraft Heinz's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of SPC Global's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for 2 additional companies
Detailed analysis
- Description and key data for Simplot Australia, and factors influencing its performance in the industry
- Description and key data for Kraft Heinz, and factors influencing its performance in the industry
- Description and key data for SPC Global, and factors influencing its performance in the industry
- Description, key data and performance trends for 2 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Supermarket and grocery store demand dictate the activity seen among fruit and vegetable processors. This trend will gradually diminish over time, as competition from imports...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
The industry's transition to capital-intensive operations, through automating processes like high-speed sorting and peeling, has reduced workforce needs. Consequently, this s...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Fruit and Vegetable Processing industry in Australia in 2024?
The market size of the Fruit and Vegetable Processing industry in Australia is $6.4bn in 2024.
How many businesses are there in the Fruit and Vegetable Processing in Australia industry in 2023?
There are 683 businesses in the Fruit and Vegetable Processing industry in Australia, which has grown at a CAGR of 2.2 % between 2018 and 2023.
Has the Fruit and Vegetable Processing industry in Australia grown or declined over the past 5 years?
The market size of the Fruit and Vegetable Processing industry in Australia has been declining at a CAGR of 0.3 % between 2018 and 2023.
What is the forecast growth of the Fruit and Vegetable Processing industry in Australia over the next 5 years?
Over the next five years, the Fruit and Vegetable Processing industry in Australia is expected to decline.
What are the biggest companies in the Fruit and Vegetable Processing market in Australia?
The biggest companies operating in the Fruit and Vegetable Processing market in Australia are Simplot Australia, Kraft Heinz and SPC Global
What does the Fruit and Vegetable Processing in Australia include?
Soups and Frozen, dried and shelf-stable fruit are part of the Fruit and Vegetable Processing industry.
Which companies have the highest market share in the Fruit and Vegetable Processing in Australia?
The company holding the most market share in Australia is Simplot Australia.
How competitive is the Fruit and Vegetable Processing industry in Australia?
The level of competition is high and increasing in the Fruit and Vegetable Processing industry in Australia.
