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Ice Cream Manufacturing in Australia Industry Market Research Report Now Updated by IBISWorld
Date:8/20/2013

Melbourne, Australia (PRWEB) August 21, 2013

After a period of poor performance, the Ice Cream Manufacturing industry in Australia has bounced back in the five years through 2013-14. According to IBISWorld industry analyst Ryan Lin, “the industry has grown despite cuts to discretionary spending caused by the global financial crisis, as consumers have turned to inexpensive indulgences.” In addition, manufacturers of ice cream have used innovation to capture demand from changing consumer preferences for healthier options. Milk prices have fluctuated over the period, peaking in 2008-09 and putting upward pressure on prices due to lack of supply. Milk prices have since come down, resulting in higher demand for industry products. Revenue is expected to increase by an annualised 3.0% over the five years through 2013-14, to $637.8 million. Growth of 2.6% is forecast in 2013-14.

The overcapacity of smaller generic players has caused some to leave the industry despite profit growing slowly. Enterprise numbers are expected to fall by an annualised 1.6% over the five years through 2013-14 while establishments will fall at a slightly slower rate of 1.0%. This reflects small businesses opening new factories to produce for niche markets. There are moderate barriers to entry in the industry, and therefore new enterprises have not entered the industry despite revenue growth. “Prospective businesses would be entering a heavily concentrated industry, and may find it difficult to compete with existing players,” says Lin. The three major players, Pacific Equity Partners Pty Limited, Unilever Australia Holdings Proprietary Limited and Regal Dairy Products Pty Limited, dominate the market.

The outlook for the

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