Rabobank has released a new report detailing the evolving dynamics in Australia’s food market, signalling a “new normal” following several tumultuous years. The Rabobank report, marking the five-year anniversary of significant market disruptions, suggests that Snowy Mountains residents among Australian consumers, and businesses are adapting to a drastically altered food ecosystem.
PHOTO: Snowy Mountains residents shopping at local supermarkets like Coles Cooma, were among many Australians pushed to change shopping habits.
Michael Harvey, RaboResearch Senior Analyst on consumer foods, highlighted a “convergence of forces,” including the global Covid pandemic, supply chain disruptions, and geopolitical tensions, as factors contributing to fluctuating commodity prices and significant changes in consumer behaviour. Harvey noted.
PHOTO: Michael Harvey
“As a result, we saw a period of reduced food and ingredient availability, multi-decade high food price inflation and changes in consumer behaviour.”
The report reveals major shifts in purchasing habits, with many Australians opting for home-cooked meals over dining out, influenced by economic pressures. “A recent, prolonged trend has been a shift to in-home meal preparation and entertaining,” explained Harvey. “While tighter household budgets have also influenced consumers’ purchasing decisions inside the grocery channel.”
Snowy Mountains and Australian business alike can anticipate continued preference for private label products, frozen goods, and discounted items as grocery spending tightens. Rabobank forecasts that private labels are regaining popularity, with conditions favouring this trend.
PHOTO: 123 Coffee House, Cooma – Cafes have been among the hardest hit.
In the food service sector, the recovery remains sluggish. Harvey commented, “Cafes, bars and full-service restaurants have been hit the hardest,” while limited-service venues have thrived with increased takeaway and delivery demand.
Overall, the report indicates, the Australian consumer food market remains highly attractive for food and beverage companies as well as farm suppliers, with a growing population and a highly-urbanised consumer base.
“As a result, the domestic food market is expanding in volume and value, and food purchasing – including food service dining – which generally outperforms other discretionary spending,” Mr Harvey said, “And this expansion also comes amid potential trade disruptions and access to offshore markets.”