Fruit and Vegetable Retailing in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: June 2024
ANZSIC G4122Revenue
$4.5bn
Past 5-Year Growth
Profit
$XX.Xm
Employees
14,966
Businesses
2,146
Wages
$XXX.Xm
Fruit and Vegetable Retailing in Australia industry analysis
Despite rising national fruit and vegetable consumption, industry retailers have faced difficult trading conditions over the past five years. Fierce price competition from the major supermarkets, Woolworths, Coles, Aldi and Costco, has constrained industry revenue growth over the period. However, rising demand for higher value products, such as organic fruit and vegetables, has provided some support for industry operators. Industry revenue is expected to decline at an annualised 0.8% over the five years through 2023-24, to $4.5 billion. This trend includes an expected drop of 2.7% in 2023-24. Recent declines have been driven by ballooning cost-of-living pressures that have seen consumers, particularly those in lower income brackets, curtail spending on premium products.Industry purchase costs have increased over the past five years, as fruit and vegetable prices at the farmgate level have risen. In particular, bushfires and the COVID-19 pandemic disrupted harvests in 2019-20, while Hurricane Niran damaged farmlands in March 2021, which caused fruit and vegetable prices to jump. Rising competition from the Supermarkets and Grocery Stores industry has limited industry operators' ability to pass on cost increases to consumers in full, which has reduced industry profitability over the past decade. Many operators have become unprofitable and exited the industry over the period, causing industry enterprise numbers to decline.Cost of living pressures are projected to suppress growth in consumption of fruit and vegetables, limiting industry revenue growth. Meanwhile, pressure from the major supermarkets is forecast to remain intense, particularly as Woolworths and Coles continue expanding their range of organic and premium fruit and vegetable options. Industry profitability is likely to fall further over the next five years, with many underperforming companies projected to leave the industry. Overall, industry revenue is forecast to rise at a sluggish annualised rate of 0.5% over the five years through 2028-29, to $4.6 billion.
Trends and Insights
- Industry firms have struggled to maintain profit margins amid rising input prices and fierce price competition. Retailers have not been able to fully pass on rising input costs leading to falling margins.
- Cost-of-living pressures have reduced spending among the lowest income quintiles. All income earners have seen inflation outpace wages and payments. Additionally, middle-income earners have been hit by rising interest rates, while the lowest income earners have seen rent costs spike.
- As retail businesses, firms in the industry are positioned according to population distribution. All states and territories' number of enterprises are roughly aligned with their share of population
- Market share concentration in the industry is consistently low despite the opportunity for economies of scale. Firms that consolidate market share tend to diversify into other product segments and operate in the Supermarkets and Grocery Stores industry.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 0.8 % over the past five years, to reach an estimated $4.5bn in 2024.
Trends and Insights
Vegetable prices grew strongly over the past five years, hurting margins
- Vegetable prices faced several price shocks over the past five years.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Competition from supermarkets is expected to constrain industry revenue growth
- The Supermarkets and Grocery Stores industry is projected to remain the main threat to the Fruit and Vegetable Retailing industry over the coming years.
Biggest companies in the Fruit and Vegetable Retailing in Australia
| Company | Market Share (%)
2024 | Revenue ($short_0)
2024 |
|---|
There are no companies that hold a large enough market share in the Fruit and Vegetable Retailing in Australia industry for IBISWorld to include in this product.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Potatoes and root vegetables, Tomatoes and Other vegetables. Potatoes and root vegetables is the largest segment of the Fruit and Vegetable Retailing in Australia.
Trends and Insights
Potatoes and root vegetables – fresh and manufactured – are blossoming in popularity
- This segment includes potatoes, which are tubers, and root vegetables, such as onions, carrots, garlic, parsnips, turnips, radishes and ginger.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Fruit and Vegetable Processing in Australia
Complementors
- Citrus Fruit, Nut and Other Fruit Growing in Australia
- Fruit and Vegetable Wholesaling in Australia
- Under Cover Vegetable Growing in Australia
- Outdoor Vegetable Growing in Australia
- Apple, Pear and Stone Fruit Growing in Australia
International industries
- Fruit & Vegetable Markets in the US
- Specialised Grocery Retailing in New Zealand
- Fruit & Vegetable Retailers in the UK
Table of Contents
About this industry
Industry definition
Industry operators primarily retail fresh fruit and vegetables.
What's included in this industry?
Potatoes and root vegetables TomatoesBeansCapsicums, lettuces, mushrooms and cucumbers Apples and pears BananasLemons, limes, oranges and mandarins Grapes, berries, strawberries and pineapplesCompanies
Purchase this report to view all major companies in this industry.
Related Terms
FARMGATE PRICEORGANICPOINT-OF-SALEIndustry Code
ANZSIC 4122 - Fruit and Vegetable Retailing in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Industry firms have struggled to maintain profit margins amid rising input prices and fierce price competition. Retailers have not been able to fully pass on rising input cos...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Cost-of-living pressures have reduced spending among the lowest income quintiles. All income earners have seen inflation outpace wages and payments. Additionally, middle-inco...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
As retail businesses, firms in the industry are positioned according to population distribution. All states and territories' number of enterprises are roughly aligned with th...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Market share concentration in the industry is consistently low despite the opportunity for economies of scale. Firms that consolidate market share tend to diversify into othe...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
While the industry benefits from economies of scale, firms that consolidate market share usually branch out to other industries. The industry has no major players, larger fru...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
Detailed analysis
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Consumption of fruit and vegetables has grown steadily despite cost-of-living concerns. Consumption of fruit and vegetables tends to be resilient to income shocks, as these f...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
The COVID-19 pandemic disrupted domestic harvest and global supply chains, contributing to rising vegetable prices. Industry retailers have had to largely absorb these costs ...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Fruit and Vegetable Retailing industry in Australia in 2024?
The market size of the Fruit and Vegetable Retailing industry in Australia is $4.5bn in 2024.
How many businesses are there in the Fruit and Vegetable Retailing in Australia industry in 2024?
There are 2,146 businesses in the Fruit and Vegetable Retailing industry in Australia, which has declined at a CAGR of 2.8 % between 2019 and 2024.
Has the Fruit and Vegetable Retailing industry in Australia grown or declined over the past 5 years?
The market size of the Fruit and Vegetable Retailing industry in Australia has been declining at a CAGR of 0.8 % between 2019 and 2024.
What is the forecast growth of the Fruit and Vegetable Retailing industry in Australia over the next 5 years?
Over the next five years, the Fruit and Vegetable Retailing industry in Australia is expected to grow.
What does the Fruit and Vegetable Retailing in Australia include?
Potatoes and root vegetables and Tomatoes are part of the Fruit and Vegetable Retailing industry.
How competitive is the Fruit and Vegetable Retailing industry in Australia?
The level of competition is high and increasing in the Fruit and Vegetable Retailing industry in Australia.
