Report: Australian dairy and soy food market to witness a CAGR of 4% by 2021

The Australian food, dairy and soy markets are forecast to grow to $13bn between 2016 and 2021, according to a report by GlobalData.

Titled ‘Top Growth Opportunities: Dairy & Soy Food in Australia’, the report attributes the growth to change in consumers’ taste, dietary and lifestyle habits.

The market suffered a downturn between 2011 and 2016 due to depreciation of the Australian dollar and slow wage growth. The two factors also led to increased price sensitivity among Australians, which altered their purchasing behaviour with emphasis on value for money.

Despite the decrease in market value, a volume growth of 2.1% was observed during the same period, owing to change in consumer buying habits towards lower priced items and bulk purchases.

With the economy and exchange rates improving, the country’s dairy and soy markets are witnessing premiumisation. Consumers are now more willing to pay more for products that suit their taste and lifestyle habits, says GlobalData analyst Veronika Zhupanova.

Trade-up is expected to occur across all categories of the market, especially drinkable yoghurt, which is projected to rise at a CAGR of 3.5%.

Companies can take advantage of this trade-up by introducing new and novel formulations in the drinkable yoghurt category, opines Zhupanova, who further adds that unique flavour combinations and functional benefits will help in differentiating and standing out in the market.

Yogurt, butter and spreadable fats are the other categories, which are anticipated to grow by both volume and value over the forecast period. Consumer preference for healthy and convenient snacking and lunch options are expected to drive demand in these categories.