Presentation on theme: "Australian Society of Baking 19 th October 2011 Shannon O’Connell, National Sales Manager Kate Hurley, Category Development Manager."— Presentation transcript:
Australian Society of Baking 19 th October 2011 Shannon O’Connell, National Sales Manager Kate Hurley, Category Development Manager
Agenda Market Trends Kate Hurley Category Development Manager International Trade Show Shannon O’ Connell National Sales Manager Bakery industry influences & drivers The bakery shopper Bakery mega trends Future growth opportunities International Dairy Deli and Bakery Association (IDDBA) June 2011 New products
Market Insights Kate Hurley __________________________________________________________________________________
Consumer/Shopper Retail Environment Grocery 46% share Specialty/Route/P&C 33% share Foodservice/Away from Home 21% share The major supermarkets will continue to dominate and grow their share of Australian’s bakery goods expenditure. Source: BIS Shrapnel, Aztec, Internal Estimates
The Shopper SINKS/DINKS % of Pop: 48% Defined: Single Income No Kids (SINKS) and Double Income No Kids (DINKS) are typically aged between 25-35 More disposable income Quality, premium & gourmet Willing to try new products Entertain regularly Single serve options FAMILIES % of Pop: 35% Defined: Younger families have kids aged 5-12 years and older families have kids aged 13-17 years Younger Families Switch between brands Older Families Volume and private label based EMPTY NESTERS % of Pop: 17% Defined: Empty nesters are parents whose children have flown the family nest. They are aged 55 years+ High disposable income Brand loyal Value for money Less open to new products More likely to buy mainstream Source: Retail World, Australian Bureau of Statistics Sinks/Dinks and Empty Nesters, currently two thirds of the market and growing, will be the key target groups with higher incomes seeking specialty products.
Demographic & Socio-Economic Drivers 65% of population growth is driven by migration Population Couples will outnumber families in the next 5 years Households The proportion of Australians over 65 is projected to increase from 13.9% to 22.6% in 2050 Age Average household income grew by 4% year on year Income Increased demand for more ethnic products Rising demand for smaller portion sizes Products will need to be adapted to appeal to mature customers Ongoing demand for premium products The demographic and socio-economic factors in Australia will drive the need for more ethnic products, smaller portion sizes, high quality premium offerings and products that appeal to the over 65 age group Source: ABS, Datamonitor
Influence of the following factors choosing food and beverage products 81 69 55 42 41 39 37 27 22 21 20 13 Taste or flavor Price Health Habit or preferred brand Convenience Country of origin Scent or aroma Ability to share Recommendations from friends/family Production methods Ethics/Sustainability benefits Brand name or image Customization benefits Packaging design Showing ‘high’ or ‘very high’ influence Source: Datamonitor Influences When Choosing A Food Product % Source: Datamonitor BFCM0401, August 2010 The fundamental importance when choosing a food or drink is sensory appeal and value for money. Over half of Australians are also highly influenced by health.
Bakery Mega Trends Natural/clean label Functional ingredients Seeds, grains & oats Nuts & fruits Organic Gluten Free Customised Occasion Specific Consumer Focused Ethnic Proposition Gourmet/Indulgent Exotic flavours Traditional/Authentic Experience Exclusive Portion Control Real Value for Money Address a need Bakery Innovation Drivers New product launches need to deliver against mega trends to be successful Product innovation is a key driver of growth within the Bakery market
Bakery Industry Influencers Private label market share is expected to double to 50% by 2025 Increased labour and rent costs are big challenges Consumer confidence is in decline Increase in imported products Growth in the demand for convenient fully finished formats 2 2 3 3 1 1 5 5 4 4 The baking industry will be influenced by private label growth and imported products, increased labour costs, declining consumer confidence and increased demand for convenient formats. Source: Rabobank, Datamonitor
Future Growth Opportunities Expand tiered offering Increase specialty offering Smaller convenience store formats Retailers and suppliers working together Implementing shopper marketing strategies Online retailing Social media ‘Village market’ feel RetailFoodservice Regional expansion Product range expansion & improvements Celebrity endorsements 24 hour service Moving out of shopping centers Day part marketing Social media Experiential Merchandising
What does this mean? Consumers are highly influenced by taste, price and health Future product innovation and investment need to correlate with these trends IMPLICATIONS MARKET TREND Increase in migrants, smaller households, over 65 population and average income Develop ethnic, mini, premium product concepts and adapt products to mature consumers The major supermarkets will continue to dominate and grow Shift in manufacturers to entertain more private label manufacturing Retail and foodservice players are under pressure from increasing costs Decreased shop footprints and a move towards convenient formats
International Trade Show Shannon O’ Connell __________________________________________________________________________________
IDDBA Show held in June 2011 at Anehaim CA A 3 day event once a year Largest show in the world serving these categories 1,500 booths focussed on new products Broad spectrum of exhibitors from large multinational exhibitors (CSM, Richs, General Mills) to small independently owned businesses Over 8,000 attendees Fantastic guest speakers (Dr Condeeleza Rice, Joe Montana etc)
“Desserts can fit into an overall healthy diet when used in small portions and balanced with healthy foods," said Melanie Douglass, a dietitian, personal trainer and author of a new weight-loss book called "Losing It! 5 Keys to Successful
An American classic….. Red Velvet donuts, cookies, cupcakes, whoppies…..
In summary…… Natural clean label Thin/Flat Functional Calorie Counting No Added Sugar Gluten Free Kids Celebration Cakes Cause-related Seasonal Events Artisan Texture Handcrafted Portion Control Exotic Flavours Real Value for Money Address a need Bakery Innovation Drivers
Thank you… Please feel free to approach Kate or myself if you wish to obtain our contact details.