Analytics company GlobalData forecasts the Australian dairy and soy food sector to grow from $10.8 billion in 2018 to $13.2 billion by 2023, at a compound annual growth rate (CAGR) of 4 per cent.
GlobalData’s report, ‘Country Profile: Dairy & Soy Food in Australia’, reveals that milk is the largest category in the Australian dairy and soy food sector, accounting for 32.2 per cent value share in 2018.
The drinkable yogurt category is forecast to register the fastest value growth at a CAGR of 5.7 per cent during 2018 to 2023.
“With increasing disposable income and low food price inflation, Australian consumers are trading-up in the dairy and soy food sector fuelling demand for products with high quality and novel ingredients,” says Sneha Singh, Consumer Analyst at GlobalData.
The value share of Australia in the global dairy and soy food sector is expected to increase marginally from 1.7 per cent in 2018 to 1.8 per cent by 2023. However, the country’s share at regional level is expected to decrease slightly by 0.5 per cent, over the next five years, as the share of other countries increases.
GlobalData says Lion, Fonterra, and Lactalis are the leading companies in the Australian dairy and soy food sector. Supermarkets are the leading channel for distribution in the country. Other preferred distribution channels among Australians include convenience stores, and food & drinks specialists.
“With growing health consciousness among Australian consumers, the demand for dairy and soy food products with health and wellness claims such as ‘food-minus’, ‘free-from’ and ‘naturally healthy’ is expected to increase,” Sneha says.
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