LOOKING TO SPUR GROWTH IN AUSTRALIA?

‘Surprising’ opportunities for breads and rolls in Australia: Analyst

By Kacey Culliney

- Last updated on GMT

Australian consumers want quick and cheap meal options, says Stafford
Australian consumers want quick and cheap meal options, says Stafford

Related tags: Sliced bread, Bread, Ronan stafford, Analyst

There is huge potential in sliced bread and rolls in Australia as consumers look for cheap and easy lunch options in the wake of a turbulent economy, an analyst says.

Sliced bread and rolls are set to soar in volume terms by 4.6% and 4.5% respectively by 2016, according to new data from Canadean. Both categories are set to grow in value by 2.7%.

“This is quite surprising and very significant,”​ said Ronan Stafford, reports analyst at Canadean.

“The growth in sliced bread and rolls is significant because they are such staple foods and mature categories,”​ Stafford told BakeryandSnacks.com.

Growth rates are in line with some of the strongest growing categories in Australia’s bakery and cereal market and will surge above the average volume growth of 3.3% for the overall sector, he said.

Opportunities for value and private label

“Australian consumers are opting for cheap but filling meals – they want to squeeze in lunch during busy working days or on-the-go… This has been driven by a weak economy. Consumers have had to reassess how they eat lunch and they are looking for a filling meal that is very cheap and easy to make,”​ the analyst said.

“There is a lot of potential for value brands to come in, and also private label.”

Entrance should be made easier given that the bread and roll category is very fragmented, he said, with the three top brands accounting for less than a third of the market in volume terms.

Value and convenience: How to lure the consumer

“It is very important for manufacturers to focus on showing how they can provide value to consumers with the bread or roll product – whether that be simply with a low cost product or convincing them why they should spend more with health and great taste claims.”

“You have to show value, and also convenience,”​ Stafford said.

He said that despite the relative recovery of Australia’s economy and the beginning of improved consumer spending, price is still key as consumers are stuck in a lag.

Related topics: Bread, Markets, Convenience

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