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Highlights
- As per experts, Australian food market is likely to grow at an annual compound growth rate (CAGR) of 3.2% by 2021-2026.
- According to the analysts, this sector is likely to witness a volume growth of 0.8% in FY22.
- COVID-19 has changed the overall buying habits; hence, the quick serve industry is likely to witness an increased competition in the upcoming years.
The pandemic has brought notable changes in the overall market conditions, from changing consumer behavior to advanced technology. This has made a significant impact on the Australian quick service industry, which has been further accelerated through the growth in online shopping. As per experts, the Australian quick service fast food restraunts are likely to witness an increased competition, as everything is going to the end-users with the online revolution. Let’s have a quick glance at Australia’s quick serve industry.
Also Read: Why the world needs a more sustainable & equitable food system?
With steady growth over the last four years, Australian quick serve industry (QSR) has maintained a very strong position with increased adoption of online ordering as more online ordering apps/ websites have emerged in the market. In 2021, big companies like – Coles, Woolworths, Elders among their major competitors held largest share of the Australian grocery retail market.
Moreover, various businesses in the Australian food sector have witnessed several benefits with the online surge which are–
- Less interference, packaging, and processing
- Smooth and contactless delivery and the businesses being dialed into digital platforms to efficiently meet the customer needs.
- cutting out expensive third-party processes
Changing consumer trends
With the pandemic, the rise in delivery options along with online delivery systems, have accelerated the upward trend on the consumer spending. Consumers can easily order and arrange their meal within few clicks which has been a great advantage for the QSR industry.
Image Source – Pexels
As per the research, present-day Australian consumers are looking for healthier options meeting their individual dietary needs. It is also important to note that the pandemic has thrown a sizeable spanner in the overall working system of the Australian QSR industry. Many businesses have been forced to adapt the new online technology to meet their business requirements during the ongoing uncertain market conditions.
Throughout last year the QSR restaurants made quick response in rise of the pandemic, while remaining competitive in the market. Businesses have taken several steps to ensure safety requirements meeting the government guidelines like maintaining strict social distancing, hand-sanitisation, and mandatory mask.
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As per the research, average Australian spends almost 34% of their weekly food expenditure on take-away foods or eating out, which has increased from around 25% in 1988-1989. As of now, there are around 50,000 fast food outlets in the country with an estimated market size of AU$20 billion, empowering the QSR industry even more.
Apart from this, the current market size of the Australian supermarkets and grocery stores sector is estimated at around AU$122.5billion where the Australian food market is expected to grow at an annual compound growth rate (CAGR) of 3.2% by 2021-2026.
As per media, the revenue in the food market was estimated around US$83,378 million in 2021, while the most revenue was generated from China. The Australian food market is likely to show a volume growth of 0.8% in FY22.
Bottomline –
Although the new normal has changed the overall consumer habits, consumers need to ensure that they should keep their health requirements on track.
