Baby Food Manufacturing in Australia - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: September 2023
ANZSIC OD5058Revenue
$237.0m
Past 5-Year Growth
Profit
$X.Xm
Employees
443
Businesses
51
Wages
$XX.Xm
Baby Food Manufacturing in Australia industry analysis
Demand for nutrient-added and organic products has supported demand for baby food. Overseas demand, particularly from Asia, for safe and high-quality Australian baby food has bolstered the industry’s performance. However, competition has intensified due to greater private-label baby food sales through major supermarkets. In addition, economic and social trends have eroded industry revenue over the past few years. As a result, revenue is expected to decline at an annualised 0.2% over the five years through 2023-24, to $237.0 million. This performance includes an anticipated rise of 1.5% in the current year following an uptick in the number of births.
Health consciousness is one of the strongest demand drivers. Rising health consciousness and strong industry marketing that highlights babies' nutritional needs have boosted demand for high-quality and nutrient-added baby food. However, weak growth in the number of births over the past few years has hindered the size of the industry's market. Fluctuations in disposable income have also limited demand, although to a lesser extent compared with other baby product manufacturers, as parents are less likely to cut costs relating to their baby's nutrition.
Revenue is forecast to rise at an annualised 1.2% over the five years through 2028-29, to $251.3 million. Projected growth in the number of births and an increase in the number of women in the labour force are forecast to drive demand for baby food over the coming years. However, a forecast appreciation in the Australian dollar is set to make Australian exports more expensive on the international market, potentially threatening revenue opportunities. Increasing competition from private-label products and forecast weak growth in disposable incomes are also likely to hinder demand for premium and organic baby food products across the domestic market.
Trends and Insights
- Baby food manufacturers have faced divergent demand trends in recent years. Demand for premium baby foods is rising but slow growth in the number of births has weakened overall demand.
- Demand for wet infant food packed in pouch-and-spout containers has grown due to its convenience. Despite environmental concerns, these easily transportable and independently consumable packages have gained popularity thanks to competitive pricing.
- The location of baby food manufacturers is largely determined by their proximity to primary producers, like fruit and vegetable growers, as the ingredients used are perishable. As such, most manufacturers are situated in New South Wales and Victoria.
- Market share concentration in the industry is high. However, premium and niche operators, like Bubs, are challenging the established manufacturers’ dominance.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has declined at a CAGR of 0.2 % over the past five years, to reach an estimated $237.0m in 2023.
Trends and Insights
Baby food manufacturers have faced mixed fortunes in recent years
- Growing health consciousness amongst parents is driving demand for premium, nutrient-rich and organic baby food.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Favourable demand trends look set to support revenue and profit growth
- A projected increase in the number of women in the labour force, along with growth in the number of births, is forecast to drive demand for baby food.
Biggest companies in the Baby Food Manufacturing in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
PZ Cussons | 58.5 | |
Kraft Heinz | 55.4 | |
Bellamy's Organic | 49.4 |
To view the market share and analysis for all 5 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Wet infant food packed in pouch-and-spout containers, Wet infant food packed in jars and cans and Infant cereals. Wet infant food packed in pouch-and-spout containers is the largest segment of the Baby Food Manufacturing in Australia.
Trends and Insights
Convenience has driven demand for wet infant food packed in pouch-and-spout containers
- Pouch-and-spout packaging generally comprises plastic, resealable bags that can be easily transported and independently consumed by infants once they’re old enough.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Butter and Dairy Product Manufacturing in Australia
Complementors
- Fruit and Vegetable Processing in Australia
- Supermarkets and Grocery Stores in Australia
- Milk Powder Manufacturing in Australia
International industries
- Canned Fruit & Vegetable Processing in the US
- Fruit and Vegetable Processing in New Zealand
- Fruit & Vegetable Processing in the UK
Table of Contents
About this industry
Industry definition
Industry firms manufacture wet and dry baby food. Industry products include baby meals, cereals, juices, drinks, biscuits, rusks, rice cakes and other snacks. The manufacturing of milk formula is excluded from the industry.
What's included in this industry?
Wet infant food packed in pouch-and-spout containersWet infant food packed in jars and cansInfant cerealsInfant snacksCompanies
PZ CussonsKraft HeinzBellamy's OrganicPurchase this report to view all 5 major companies in this industry.
Related Terms
NUTRIENT-ADDED FOODCERTIFIED ORGANICPOUCH-AND-SPOUTIndustry Code
ANZSIC 1140 - Baby Food Manufacturing 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
Baby food manufacturers have faced divergent demand trends in recent years. Demand for premium baby foods is rising but slow growth in the number of births has weakened overa...
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 (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- 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
Demand for wet infant food packed in pouch-and-spout containers has grown due to its convenience. Despite environmental concerns, these easily transportable and independently...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2023
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
- International trade, including imports by country and exports by country
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
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
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
The location of baby food manufacturers is largely determined by their proximity to primary producers, like fruit and vegetable growers, as the ingredients used are perishable...
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 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
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 high. However, premium and niche operators, like Bubs, are challenging the established manufacturers’ dominance.
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 2018-2023
- 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
Baby food manufacturing in Australia is dominated by large multinational companies. UK-based PZ Cussons owns Rafferty’s Garden; Heinz is the local subsidiary of US food giant...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of PZ Cussons's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Kraft Heinz's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Bellamy's Organic's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for 2 additional companies
Detailed analysis
- Description and key data for PZ Cussons, and factors influencing its performance in the industry
- Description and key data for Kraft Heinz, and factors influencing its performance in the industry
- Description and key data for Bellamy's Organic, and factors influencing its performance in the industry
- Description, key data and performance trends for 2 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Baby food producers in Australia are governed by Food Standards Australia New Zealand, with several laws specific to infant foods and formulas. Regulations include nutritiona...
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 (2013-2028)
- Assistance historical data and forecast (2013-2028)
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
Profit margins have declined over the past few years. This is due to rising competition from low-cost private-label alternatives as well as a rise in the cost of inputs like ...
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 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
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 (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
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 Baby Food Manufacturing industry in Australia in 2024?
The market size of the Baby Food Manufacturing industry in Australia is $237.0m in 2024.
How many businesses are there in the Baby Food Manufacturing in Australia industry in 2023?
There are 51 businesses in the Baby Food Manufacturing industry in Australia, which has grown at a CAGR of 2.5 % between 2018 and 2023.
Has the Baby Food Manufacturing industry in Australia grown or declined over the past 5 years?
The market size of the Baby Food Manufacturing industry in Australia has been declining at a CAGR of 0.2 % between 2018 and 2023.
What is the forecast growth of the Baby Food Manufacturing industry in Australia over the next 5 years?
Over the next five years, the Baby Food Manufacturing industry in Australia is expected to grow.
What are the biggest companies in the Baby Food Manufacturing market in Australia?
The biggest companies operating in the Baby Food Manufacturing market in Australia are PZ Cussons, Kraft Heinz and Bellamy's Organic
What does the Baby Food Manufacturing in Australia include?
Wet infant food packed in pouch-and-spout containers and Wet infant food packed in jars and cans are part of the Baby Food Manufacturing industry.
Which companies have the highest market share in the Baby Food Manufacturing in Australia?
The company holding the most market share in Australia is PZ Cussons.
How competitive is the Baby Food Manufacturing industry in Australia?
The level of competition is high and decreasing in the Baby Food Manufacturing industry in Australia.
