Driven by drinkable yogurt category, the Australian dairy & soy food sector is forecast to grow from A$10.8bn (US$8.14bn) in 2018 to A$13.2bn (US$9.77bn) by 2023, at a compound annual growth rate (CAGR) of 4.0%, says GlobalData, a leading data and analytics company.

GlobalData’s report, ‘Country Profile: Dairy & Soy Food in Australia’, reveals that milk is the largest category in the Australian dairy & soy food sector accounting for 32.2% value share in 2018. The drinkable yogurt category is forecast to register the fastest value growth at a CAGR of 5.7% during 2018–2023, followed by yogurt (5.3%).

Sneha Singh, Consumer Analyst at GlobalData, says: “With increasing disposable income and low food price inflation, Australian consumers are trading-up in the dairy and soy food sector fueling demand for products with high quality and novel ingredients.”

The value share of Australia in the global dairy & soy food sector is expected to increase marginally from 1.7% in 2018 to 1.8% by 2023. However, the country’s share at regional level is expected to decrease slightly by 0.5%, over the next five years, as the share of other countries’ increases.

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Lion Pty Ltd, Fonterra and Groupe Lactalis SA are the leading companies in the Australian dairy & soy food sector. Hypermarkets & supermarkets is the leading channel for the distribution of dairy & soy food products in the country. Other preferred distribution channels among Australians include convenience stores, and food & drinks specialists.

Singh concludes: “With growing health consciousness among Australian consumers, the demand for dairy and soy food products with health and wellness claims such as ‘food-minus’, ‘free-from’ and ‘naturally healthy’ is expected to increase, particularly in drinkable yogurt, yogurt and, butter and spreadable fats categories.”