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 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%. 8
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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 10
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. 12
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. 40 Percent The Foodservice Dollar 35 30 The Foodservice Dollar 25 20 15 10 61 63 65667 69 71 73 757677 79 81 83 858687 89 91 93 959697 99 01 03 050607 09 11 Year Ended June Source: BIS Foodservice and ABS data 14
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 South Australia is about regionalism in our own local produce 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 17
New South Wales New South Wales is a pulsating, ethnically diverse foodservice market 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 18
Victoria Melbourne is the coffee capital of Australia 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 19
Queensland It is difficult to become excited about seasons and their foods in 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 20
Western Australia Although remote from the Eastern states, WA has huge potential for foodservice suppliers. 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 21
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 The future looks bright for Darwin A chronic shortage of foodservice staff 22
Foodservice Market Size
Foodservice Operators Foodservice Outlets Total number of foodservice outlets: 74,196 Commercial outlets: 58,602 Institutional outlets: 15,594 Commercial Institutional 21% Serving 4.7 billion meals annually 79% 24
Outlet Numbers by State 25
Market Size Foodservice Operators Purchase of Food & Non-Alcoholic Beverages Total Market Size - Volume Commercial Market Size - Volume Institutional Market Size - Volume 2011 2.8 Million Tons 2.4 Million Tons 400 Thousand Tons Foodservice Operators Expenditure on Food & Non-Alcoholic Beverages Total Market Size - Value Commercial Market Size - Value Institutional Market Size - Value 2011 A$15.6 Billion A$13.4 Billion A$2.2 Billion 26
Market Size in Volume & Value 14% Institutional Sector Commercial Sector 86% 27
Product Categories Market Size in Volume - Percentage Share of Product Categories 28
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 29
Opportunities Products: partly or fully pre-prepared food products portion control gluten free Innovation paramount think foodservice, not retail! 30
Opportunities 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 rise & rise opens up for complimentary food products 31
Challenges Rising food costs still number one concern among operators Fragmented market A continent Distribution 32
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. 33
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 37
South East Asia 1.3 million foodservice outlets US$48 billion at consumer level 38
Street Dominates 39
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 40
South East Asia Young populations and new family structures impacting the foodservice market Rapid urbanisation impetus for foodservice growth particularly in the QSR channel 41
South East Asia 42