Foodservice Market Prospects - Food South Australia...
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Foodservice Market Prospects Australia & South East Asia Food SA Summit 5th June 2012
Transcript of Foodservice Market Prospects - Food South Australia...
Foodservice Market Prospects
Australia & South East Asia
Food SA Summit
5th June 2012
BIS Foodservice
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Three Available
Food & Beverage Markets
The Three Food & Non-Alcoholic Beverage Markets
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Market Size: The foodservice market accounts for about
25% of total value of food and non-alcoholic
beverage supply in Australia while supermarkets
account for 65% and the route trade market 10%.
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The Foodservice Market – Key Segments
Commercial Sector
Restaurants
Cafés
Fast Food (QSR) Chains & Independents
Institutional Sector
Nursing Homes
Schools
Workplace Canteens
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The Australian
Foodservice Market
Australian Foodservice Market
The Australian Foodservice market is unique in its total
offering of various cuisine types and eating out experiences.
No other foodservice market offers a similar choice for the
consumers, and hence market opportunities for food and
beverage suppliers.
Over the past ten to fifteen years, Australians have made
eating out a way of life.
The Australian Foodservice market is today a developed
market where the foodservice consumer does not stop eating
out during economic downturns when consumer & business
confidence is low, but they trade down instead in their choice
of outlet.
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Australian Foodservice Market
Today, Australian households spend 35 cents in the dollar
of their total food and non-alcoholic beverage budget on
eating out.
Reached 38 cents in 2005/06
In 1960, the equivalent figure was: 12 cents
In 1980, it was: 25 cents
The Australian market is in line with global trends where
foodservice is growing while retail sales are in decline
or at best stagnant.
Regional areas are increasingly offering a wide variety of
different eating out options and cuisines. Foodservice
development is no longer the prerogative of cities and
urban areas. 13
The Foodservice Dollar
The chart shows the percentage of Australian households’ food & non-alcoholic beverage budgets spent on eating out.
The Foodservice Dollar40 Percent
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40
30The Foodservice Dollar
25
20
15
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61 63 65 67 69 73 75 77 79 83 85 87 89 93 95 97 99 03 05 07 09 61 66 71 76 81 86 91 96 01 06 11 10
Source: BIS Foodservice and ABS dataYear Ended June
Australian Foodservice Market
Eating out in Australia is relatively affordable compared with other Western developed foodservice markets
Personal relationships still the hallmark of the foodservice market
The foodservice market is by nature international but with distinct national or local characteristics. Many similar world wide trends like the Italian Coffee & Café Culture
But caution when comparing markets
The Australian Foodservice Market = The Scandinavian Foodservice
Markets and not the US Foodservice Market
The Singaporean Foodservice Market South East Asian Markets 15
Foodservice Regions
South Australia
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A strongly rooted food culture – the essence of the South Australian foodservice market
Always favoured own local produce and food products
Farmer’s markets are important institutions also for foodservice operators
Still a proud British and German food culture
National as well as international food trends and cuisines take a long time to get established in this foodservice region
Seasonal food offering
“South Australia is about regionalism in our own local produce”
New South Wales
Although Sydney centric, NSW has:
Many other large urban areas & cities
Wine districts
Holiday destinations
Thai, Japanese, Indian and of course, Chinese, are the more well known ethnic cuisines established in regional NSW, while Italian food is not counted as foreign
The R&G coffee culture is entrenched right throughout the state
Traditionally, NSW has a strong club culture
Sydney is a very cosmopolitan foodservice market – truly diverse and dynamic in its total offering
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“New South Wales is a pulsating, ethnically diverse foodservice market”
Victoria
Foodservice in regional Victoria has been booming since
the beginning of last decade with more and more excellent
restaurants – particularly in the wine regions
Tourism is critically important to regional Victoria
Café culture started in Melbourne in the 1950s
Melbourne – an eclectic mix of cafés and restaurants as well as fine dining
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“Melbourne is the coffee capital of Australia”
Queensland
Brisbane foodservice scene developed vastly over the last decade
Now attracting fine dining chefs
A market still in transition
Steak, chips & salad a certain seller
Fine dining is brasserie style
Gold Coast – a mixture of affluent retirees and overseas tourists
Cairns & the Tropical North – dictated by the two tropical seasons
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“It is difficult to become excited about seasons and their foods in Queensland”
Western Australia
Many hundred operating mines
Significant growth in tourism
Opportunities for several channels in the foodservice
sector – in particular hotels, workplace canteens, cafés, restaurants, QSR, hospitals and caterers
Shortage of skilled back-of-house as well as front-of-house foodservice personnel opens up for opportunities in partly or fully prepared food products
North west of the state have problems with supply
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“Although remote from the Eastern states, WA has huge potential for foodservice suppliers.”
Northern Territory
A strong economy due to large resources and infrastructure projects
Excellent setting for casual dining with an abundance of high quality restaurants and cafés
A strong club culture
A chronic shortage of foodservice staff
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“The future looks bright for Darwin”
Foodservice Market Size
Foodservice Operatorsp
Foodservice Outlets
Total number of foodservice outlets: 74 196Total number of foodservice outlets: 74,196
Commercial outlets: 58,602
Institutional outlets: 15,594
Commercial Institutional
21%
S i 4 billi l ll79%
Serving 4.7 billion meals annually
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Outlet Numbers by State
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Market Size
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Foodservice Operators’ Purchase of Food
& Non-Alcoholic Beverages 2011
Total Market Size - Volume 2.8 Million Tons
Commercial Market Size - Volume 2.4 Million Tons
Institutional Market Size - Volume 400 Thousand Tons
Foodservice Operators’ Expenditure on
Food & Non-Alcoholic Beverages 2011
Total Market Size - Value A$15.6 Billion
Commercial Market Size - Value A$13.4 Billion
Institutional Market Size - Value A$2.2 Billion
Market Size in Volume & Value
14%
Institutional Sector
Commercial Sector
86%
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Product Categories
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Market Size in Volume - Percentage Share of Product Categories
Opportunities
The foodservice market is extremely exciting and vibrant with
ample opportunities for all types of suppliers to find their areas
for growth
By nature the foodservice market offers far more opportunities
for developing distinct market approaches and niches
compared with the Australian food retailing scene where
fighting and paying for shelf space tend to be the main game
Increasing opportunities in the institutional foodservice sector
due to an ageing population. Already underserviced
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Opportunities
Products:
partly or fully
pre-prepared
food products
portion control
gluten free
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Innovation paramount – think foodservice, not retail!
Opportunitiespp
Healthy eating – also on the rise in foodservice
The winners in the commercial sector during the economic downturn have been: Lower end restaurants Clubs Fast Food chains
Espresso coffee is on the prise & rise – opens up for complimentary food products
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Challengesg
Rising food costs ill b– still number one
concern among operators
Fragmented market Fragmented market
A continent
Distribution
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Market Outlook
Any foodservice market is the first market or industry to be affected by an economic downturn.
But also one the first markets to rebound once the economy improves and consumer & business confidence returns.
Foodservice expenditure by consumers is discretionary spending but in Australia consumers are still eating out but they have traded down in their choice of outlet, they do not eat out as often and they do not spend as much each time.
Up until the beginning of the GFC, the Australian Foodservice market experienced solid growth year on year. This growth will pick up again once the general economy improves.
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Worldwide Foodservice Markets
South East Asia
Six major markets – each with its own unique market characteristics:
Malaysia
Singapore
Thailand
Vietnam
Philippines
Indonesia
With a total population of 543 Million
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South East Asia
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1.3 million foodservice outlets
US$48 billion at consumer level
Street Dominates
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South East Asia
Eating out of home a total way of life
All markets, except Singapore, are developing foodservice markets
Strong food cultures and traditional cuisines
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South East Asia
Young populations and new family structures impacting the foodservice market
Rapid urbanisation impetus for foodservice
growth – particularly in the QSR channel
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South East Asia
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