According to the latest market research study released by Technavio, the retail market in Australia is expected to grow at a CAGR of almost 3% during the forecast period 2016-2020.
This market research report by Technavio provides an in-depth analysis of the market in terms of revenue and emerging market trends. The report also includes an up-to-date analysis and forecasts for various market segments and all geographical regions.
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Technavio research analysts categorize the global retail market in Australia based on product:
Retail market in Australia share by product 2015
|
Food and beverages |
71.29% |
|
Apparel and footwear |
11.88% |
|
Consumer electronics and appliances |
11.07% |
|
Beauty and personal care |
3.04% |
|
Household products |
2.19% |
|
Personal hygiene |
0.54% |
Source: Technavio
The top three revenue contributing product segments are discussed below:
Food and beverages in Australia
The food and beverages segment accounted for around 71% of the retail market in Australia and is expected to show steady growth during the forecast period. The presence of large multinational and regional retailers makes the food retail market in Australia highly competitive. The beverage market is expected to show steady growth during the forecast period. Among the different segments of food market, the organic food segment is witnessing a huge growth rate. Factors such as intense competition and price wars are strong determinants for the growth of the food segment. For instance, Super market chains such as Woolworths and Coles have a strong hold in the market, while the discount retailers such as ALDI are slowly making presence in market through their low pricing strategy and extensive range of private-label products.
“One of the major trends that the beverage industry is witnessing is the less consumption of alcohol among consumers, especially the younger generation. In the food industry also, people are opting for healthier snack options due to the growing rate of obesity. Foodservice operators are also coming up with healthy eating trends by offering nourishing menu options. The growing prevalence of health and wellness trends throughout the country has propelled consumers to opt for convenience and ready-to-eat foods, such as protein balls, trail mix, and chilled ready meals. With the consumer’s busy lifestyle, the retail sales of these products will increase considerably, leading to the overall growth of the market,” says Poonam Saini, a lead analyst at Technavio for research on general retail goods and services.
Apparel and footwear market in Australia
In 2015, the apparel and footwear segment accounted for around 12% of the retail market in Australia and is expected to witness fast growth during the forecast period. The arrival of several local and international brands in the apparel market of Australia has given consumers huge options to choose from a wide variety of brands. The presence of high competition in the market has pushed retailers to offer discounts and other value-added services to attract consumers and maintain brand loyalty. In the footwear market of Australia, the level of competition is increasing from foreign brands, which has led to lots of mergers and acquisitions among the vendors to achieve the economies of scale. In 2015, the increase in demand from consumers for fashionable footwear and comfortable sports footwear has augmented sales in the footwear market of Australia. The expansion of retail industry has given consumers huge options in terms of brands, designs, and value. The market for apparel and footwear is likely to witness significant growth during the forecast period due to growing awareness of consumers towards international brands and their easy accessibility.
Consumer electronics and appliances market in Australia
The consumer electronics and appliances segment accounted for around 11% of the retail market in Australia in 2015. The continuous innovations and consumer’s preference for latest electronic products will further boost the segment’s growth during the forecast period. The consumer electronics market is highly driven by new categories such as wearable technologies and smartphones. Major manufacturers such as Apple and Samsung will continue to dominate the market in mature categories such as computers and other in-home electronic devices. In case of consumer appliance market, including major and minor appliances, will witness high growth in terms of volume as well as value during the forecast period. The primary reason for this growth is the increasing product sophistication and personalization that have pushed up the average prices, leading to high sales. The rising cost of water and energy supplies has propelled consumers shift towards more energy-efficient appliances. Moreover, the demand for multi-functional consumer appliances is expected to increase in the coming years due to the rise in urbanization and busy consumer lifestyles. For instance, the introduction of multi-functional kitchen appliances such as Thermomix, has posted strong growth in the market.
The top leading vendors operating in the retail market in Australia are:
- ALDI Stores
- JB Hi-Fi
- Metcash
- Woolworths
- Wesfarmers
Other prominent vendors in the retail market in Australia include Adidas, Amazon, ASOS, Billabong, Costco, Cotton On, Chemist Warehouse, Gap, Giordano International, H&M, Inditex, Ionic, Kogan, Levi Strauss, Myer, Macy’s, Mango, Nike, Pacific Brands, Priceline, Sephora, Thermomix, and The Good Guys.
A more detailed analysis is available in the Technavio report titled, ‘Retail Market in Australia 2016-2020’. Technavio also customizes reports by other regions and specific segments upon request.
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