Australia Convenience Food Market Size, Share Analysis and Forecast Report 2024-2032

Australia Convenience Food Market Trends

The Australia convenience food market is driven by the need for time-saving solutions, providing quick and high-quality meals for busy lifestyles. It offers diverse options to suit various preferences, is easily accessible in stores and online, and features pre-portioned sizes that help consumers manage intake and reduce food waste, simplifying meal planning. According to DAFF, poultry meat production value is expected to rise by 2%, reaching USD 3.9 billion in 2024-25, which will boost the demand of Australia convenience food market, as poultry products come in ready-to-cook or pre-cooked forms, facilitating quick meal prep, while frozen options extend shelf life, allowing consumers to stock up without concerns about spoilage.

The Australia convenience food market is evolving to feature healthier options such as organic, low-calorie, and plant-based products, appealing to health-conscious consumers. It also introduces innovative flavours for adventurous eaters and serves as a cost-effective alternative to dining out, enabling people to enjoy quality meals at home. According to the Department of Agriculture, Water, and the Environment in 2022, top organic products included vegetables (29%), fruits (23%), wine grapes (21%), and beef (19%). Organic vegetables often come pre-washed and pre-cut, making them easy to incorporate into quick meals and reducing preparation time, which contributes to the Australia convenience food market revenue.

Australia Convenience Food Market Growth

The Australia convenience food market is experiencing notable growth driven by several factors. Busy lifestyles are pushing consumers to seek quick meal solutions, while increased health awareness has heightened demand for healthier options like organic and plant-based products. The market features diverse flavours and cuisines, with technological advancements in preservation and packaging further boosting demand for the Australia convenience food market. In August 2023, Ferndale Foods Australia announced a $20 million investment in a Ballarat facility to cater to the rising global demand for "better for you" bars, focusing on sugar-free, gluten-free, and high-fibre options.

The Australia convenience food market trends and dynamics are being enhanced by several factors. The rise of e-commerce has improved accessibility to these products, while the popularity of meal kits merges convenience with the appeal of home cooking. Furthermore, a strong emphasis on sustainability is increasing interest in eco-friendly options. Collectively, these trends indicate a shift in consumer behaviours and preferences. In 2018, Australia established ambitious National Packaging Targets for 2025 to encourage sustainable packaging management, focusing on increasing the use of recycled content, particularly in paper (60%), according to the Department of Climate Change, Energy, Environment, and Water.

Australia Convenience Food Market Insights

• According to findings from MDPI for Australia in 2020, ready meals were categorized as follows: 228 meals (48.7%) were frozen, 181 meals (38.7%) were chilled, and 59 meals (12.6%) were shelf-stable.
• The Australian Bureau of Statistics reported that in 2020-21, a total of 14.7 million tonnes of food and non-alcoholic beverages were sold across various outlets, including supermarkets, grocery stores, convenience shops, speciality food retailers, and fresh food markets.
• Industry reports indicate that the demand for convenience meals is projected to reach $5.3 billion by 2030, with an annual growth rate of approximately 3%.

Industry News

July 2024

Sevenoaks Foods, based in Perth, launched its first ready-to-eat range for kids after two years of development. Available at Harris Farm Markets, the lineup includes Margherita Pizza Slices, Mini Beef Sausage Rolls, and Juicy Free Range Chicken Nuggets. The products contain no artificial colours or flavours, are low in salt, have no added sugar, and are made with real ingredients. Additionally, the packaging is crafted from ocean-recycled plastic, and the chicken nuggets feature a four-star health rating.

November 2023

Mars Food & Nutrition Australia has rolled out a new ready-to-heat line under the Ben's Original brand, addressing the demand for convenient and healthier meal options. The Ben's Original 10+ Medley microwave series includes dishes inspired by Mexican, Mediterranean, and Chinese cuisines, catering to diverse dietary preferences.

Australia Convenience Food Market Drivers

Healthier Options

The Australia convenience food market is experiencing growth due to the increasing demand for healthier options, driven by heightened consumer awareness of nutrition and wellness. Organic, low-calorie and plant-based products are gaining traction, leading brands to reformulate their offerings by reducing sugar, salt, and artificial ingredients. Convenience foods focuses on health-conscious consumers and reflects an increasing emphasis on sustainability and ethical sourcing, as many individuals prioritize both health and environmental considerations in their buying choices. According to Diabetes Australia's 2023 report, around 1.5 million Australians are diagnosed with diabetes. As a result, numerous convenience foods now feature health certifications and claims that appeal to diabetic consumers, such as "diabetic-friendly," "heart-healthy," and "no added sugars," boosting consumer trust and encouraging purchases.

E-commerce Growth

The Australia convenience food market is undergoing significant changes in the expansion of e-commerce. Online grocery shopping has gained popularity, enabling consumers to access a broader selection of products from home. This trend was accelerated by the pandemic, leading retailers to improve their online platforms and delivery services. Consumers value the convenience and efficiency of online shopping, boosting sales in the convenience food sector and increasing the Australia convenience food market industry revenue. The ABS projects that Australia’s e-commerce market will reach USD 37.10 billion by 2024, with an expected annual growth rate of 9.36% from 2024 to 2029, facilitating easier access to various convenience foods.

Opportunities in the Australia Convenience Food Market

Sustainability Focus

The Australia convenience food market is experiencing growth as sustainability becomes a key priority, with consumers increasingly seeking eco-friendly options. Brands are responding by implementing sustainable practices, such as utilizing recyclable packaging and responsibly sourcing ingredients. This trend reflects a growing awareness of environmental issues and the demand for transparency in food production. Companies that emphasise sustainability attract eco-conscious shoppers and enhance their brand reputation, leading to increased customer loyalty and driving convenience food demand. In January 2024, Australian alternative meat manufacturer v2food acquired the plant-based ready meal brand Soulara, which offers meals like Thai-style tofu and Eggplant caponata with ravioli, delivered directly to consumers and ready in just three minutes. This acquisition aims to help v2food expand its reach beyond retail and food service into direct-to-consumer sales.

Market Restraints

The Australia convenience food market faces several key restraints. Health concerns about processed foods, particularly high sugar, and sodium content, are causing consumers to seek fresher options. Price sensitivity makes convenience foods seem expensive compared to home-cooked meals, limiting market growth. Competition from fresh, ready-to-eat meals and the challenge of implementing sustainable practices also hinder appeal.

Strict regulatory compliance can increase costs while evolving consumer preferences demand transparency in ingredients. Additionally, supply chain disruptions and cultural diversity require brands to adapt. Overcoming perceptions of lower quality and addressing environmental concerns are crucial for Australia convenience food market growth.

Australia Convenience Food Industry Segmentation

“Australia Convenience Food Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Product Type

• Meat/Poultry Products
• Cereal-Based Products
• Vegetable-Based Products
• Others

Market Breakup by Type

• Raw Food
• Canned Food
• Frozen Food
• Ready to Cook
• Ready to Eat
• Others

Market Breakup by Distribution Channel

• Supermarkets and Hypermarkets
• Convenience Stores
• Speciality Stores
• Others

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Australia Convenience Food Market Share

By Product Type Analysis

As per Australia convenience food market analysis, meat and poultry products in the convenience food market provide quick, ready-to-eat meals that suit busy lifestyles. They are a significant source of protein, essential for a balanced diet. Many brands are now focusing on healthier recipes with fewer additives and sustainable sourcing, which attracts health-conscious consumers and supports the convenience food demand growth. According to the ABS, in the June 2024 quarter, 186.8 million chickens were slaughtered, marking a 2.6% increase. Chicken meat production also rose by 5.4% to 374,602 tonnes. Additionally, red meat production increased by 3.6% during the same period. As consumer demand for sustainable sourcing rises, brands are increasingly emphasizing ethically raised poultry and environmentally friendly practices, enhancing brand loyalty and appeal in the market.

Cereal-based products offer a convenient and nutritious option for those looking for quick meals or snacks. High in fibre and whole grains, they support digestive health and provide sustained energy. Their versatility allows for numerous flavour combinations and meal possibilities, making them suitable for breakfast, lunch, or snacks while accommodating various dietary preferences. The gross production value of Australia's cereals market is projected to reach USD 20.04 billion in 2024, with an export value estimated at USD 7.1 billion. Cereal bars and clusters have become popular convenient snacks that cater to health-conscious consumers, often highlighting whole grains and natural ingredients for those seeking healthier alternatives.

Australia Convenience Food Market Regional Insights

Frozen and canned fish products play a crucial role in the Australia convenience food market by offering quick and nutritious meal solutions. Frozen options deliver high-quality protein and omega-3s in various forms, while canned fish is shelf-stable, ready to eat, and cost-effective, making them ideal for busy lifestyles.

According to the FAO, Australia’s total fishery production reached 295,100 tonnes in 2021, with 42% sourced from aquaculture, which has significantly bolstered the growth of the Australian seafood market. The Department of Agriculture, Fisheries, and Forestry reported that seafood consumption in Australia was 350,000 tonnes in 2021-22. Additionally, the Gross Value of Production (GVP) for Australian fisheries and aquaculture reached $3.42 billion in 2021-22, further fueling the demand for Australia convenience food market as fish products offer simple meal solutions for health-conscious consumers.

Competitive Landscape

Australia convenience food market key players cater to various sectors, including retail, food service, and manufacturing. They emphasize innovation and customisation, developing distinctive flavour profiles to suit customer preferences. Committed to quality and sustainability, these companies responsibly source ingredients, ensuring their products enhance taste while meeting consumer demands for healthier, more natural choices.

Key Industry Players

Nestlé SA: Headquartered in Vevey, Switzerland, Nestlé SA has been a leader in the global food and beverage industry since its establishment in 1866. The company offers a diverse array of products, including dairy, coffee, nutrition, and snacks. With a strong commitment to sustainability and health, Nestlé prioritises innovation and quality to meet the varying needs of consumers around the world.

The Kraft Heinz Company: Founded in 2015 and based in Chicago, Illinois, The Kraft Heinz Company is one of the largest food and beverage companies globally. It is renowned for its iconic brands in condiments, snacks, and frozen meals. The company emphasises innovation and operational efficiency, striving to provide high-quality products to consumers everywhere.

McCain Foods Limited: Established in 1957 and headquartered in Florenceville-Bristol, Canada, McCain Foods Limited is a leading manufacturer in the frozen food sector, specializing in potato products such as fries and appetizers. The company is dedicated to quality and sustainability, serving a global customer base while focusing on innovation and customer satisfaction within the convenience food market.

General Mills Inc.: Founded in 1866 and based in Minneapolis, Minnesota, is a major player in the production of branded consumer foods, including cereals, snacks, and baking products. Known for its commitment to sustainability and product innovation, General Mills caters to a diverse range of consumers, enhancing meals and snacks for families worldwide.

Other key players in the global Australia convenience food market report include Flavour Makers, K & A Foods., Beak & Johnston Pty Ltd, Safcol Australia Pty Ltd., Simplot Australia Pty Ltd., and South Australian Gourmet Food Company among others.

Recent Developments

July 2024

CJ CheilJedang's food brand, bibigo, introduced its frozen rice rolls at Woolworths supermarkets in Australia, achieving notable sales growth. The ready-to-heat products, Tuna Mayo Gimbap and Bulgogi Gimbap, marked the first time Korean gimbap, made with cooked rice and various fillings wrapped in seaweed, was available in mainstream retail.

February 2024

Nutri V launched a new range of 100% pure vegetable powders sourced from Australian-grown produce. In an Australian first, the company repurposed imperfect broccoli, cauliflower, and pumpkin into shelf-stable powders, providing a convenient way for families to incorporate more vegetables into their everyday meals.