Fortified/Functional Packaged Food in Australia

PROSPECTS

Modest growth expected in FF packaged food, with FF milk formula set to drive sales

Over the forecast period, FF packaged food is expected to generate modest value sales growth in constant 2017 terms. With static value growth expected in the largest FF category of FF dairy, it is strong growth in smaller categories that is set to determine overall category growth.

Sales of protein-enriched products set to support strong growth in FF energy bars

After registering strong growth towards the end of the review period, FF energy bars is set to generate very strong sales growth over the forecast period as well. Among the main reasons for this is that demand for energy bars that are fortified with protein is rising rapidly.

Probiotic yoghurt to register modest growth as demand shifts towards NH products

Probiotic dairy-based yoghurt is expected to register modest growth over the forecast period and this is mainly due to declining demand for probiotic flavoured yoghurt and probiotic fruited yoghurt, which are regarded as being high in sugar and thus relatively unhealthy. Probiotic plain yoghurt, however, is set to register quite strong growth as consumers are shifting towards less sweetened options.

COMPETITIVE LANDSCAPE

Parmalat falls back into second position in FF packaged food

After rising to the leading position in FF packaged food in 2016, Parmalat registered a sharp decline in sales in 2017 as it returned to second position in the category. It gained the leading position in FF packaged food due to its December 2015 acquisition of Fonterra Brands’ Tamar Valley yoghurt and dairy-based desserts business.

Lion Pty Ltd reclaims leadership of FF packaged food

After losing its leading position in FF packaged food to Parmalat in 2016, Lion regained its status as the category leader in 2017. The main reason for this was the slump registered in sales of Parmalat’s Ski brand in FF dairy-based yoghurt over the course of the year, which resulted in Parmalat regaining its leading position in this category and FF packaged food overall.

Private label remains an influential player in FF packaged food

Private label generated a significant proportion of value sales in FF packaged food in 2017. Grocery discounter Aldi Stores Supermarkets is the strongest private label player in the category, offering products under numerous different names, including Brooklea, Goldenvale, Dairy Dream, Mamia and Lyttos.

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