The Australian soups sector is projected to grow from A$509.9m (US$354.7m) in 2019 to A$588.2m (US$401m) in 2024 at a compound annual growth rate (CAGR) of 2.9%, says GlobalData, a leading data and analytics company.

GlobalData’s report, ‘Australia Soups – Market Assessment and Forecasts to 2024’, reveals that the sector is majorly driven by the frozen soup category, which is forecast to register the fastest value CAGR of 6.3% during 2019–2024. The category is followed by UHT soup, which is expected to record a CAGR of 5.7% during the next five years.

Sanchi Agarwal, Consumer Analyst at GlobalData, says: “The Australian soups sector is being driven by the rising disposable incomes and busy consumers who seek convenient yet healthy products to match their fast-paced lifestyles. Additionally, young consumers with experiential palates are driving innovation in the sector.”

‘Hypermarkets & supermarkets’ was the leading distribution channel in the Australian soups sector in 2019. It was followed by convenience stores and e-retailers.

In volume terms, the share of Australia in the global soups sector is expected to decrease from 1.5% in 2019 to 1.4% in 2024. Similarly, the country’s share at the regional level is expected to decrease from 17.1% in 2019 to 15.6% in 2024.

Unilever, Campbells Soup Company and The Kraft Heinz Co were the top three companies in the Australian soups sector. Continental and Campbell`s were the leading brands in value terms in 2019.

Ms Agarwal concludes: “Australian consumers are becoming increasingly health conscious and are paying attention to their diets as well as ingredients in their food products. This is encouraging the manufacturers to launch ‘better-for-you’ products with healthier ingredients and ‘free-from’ claims to appeal to these consumers.”