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Australia Cider Market Insights 2013

Australia cider market: Industry remains positive


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2014-04-18 12:53:03 - Australia Cider Market Insights 2013 - a new market research report on companiesandmarkets.com

The outlook for the Australia cider market remains positive, with growth in 2013 expected to continue at high double-digit rates. Despite several years of good growth, penetration is below rates seen in the UK, Ireland and New Zealand, which have similar beer consumption rates and cultural traits to Australia.

This is particularly important in a normally-warm country like Australia, where social occasions – whether at home or on licensed premises – are generally geared towards outdoor drinking. So although cider managed to show strong growth in these years through winning share, it was doing so from a smaller market. The improved summer expected in the 2012-13 season will likely increase the size of the overall pool, allowing cider to continue growing.

 

 



Australia´s cider market is certain to increase in complexity over the coming years. The emerging super premium category is likely to post further growth, and the two domestic brewers will continue their push into higher-end and craft ciders. At the same time, private label cider is also showing signs of growth as supermarkets seek to enter the alcoholic beverages market more widely, with brands that are of just as strong in quality and just as appealing to consumers as branded products.

The leading brand in the Australian cider market is still Strongbow, originally a UK brand brewed by HP Bulmer Australia, but purchased by CUB in 2003. It was by far the market leader in 2008; however, this had fallen to 26% by 2012. Sales have been growing solidly for the last five years and Strongbow remains the leading brand, but it has not kept pace with overall market growth. Strongbow sales are still almost double those of its nearest competitor.

Aside from the top player, though, the market dynamics have changed immensely. The second-largest brand, with 13% of total volumes in 2012 is Rekorderlig, a Swedish import, distributed by small independent distributor Red Island. Its sales more than doubled between 2011 and 2012, and growth is expected to continue outstripping the market in 2013.

The third-largest brand in the market, having overtaken CUB´s Bulmers Original and Mercury brands since 2010, is Lion´s Tooheys Extra Dry 5 Seeds. 5 Seeds was launched in 2008 to deal with the absence of a cider brand in Lion´s portfolio, extending the group´s successful Toohey´s Extra Dry beer brand into the cider market. It has been the fastest growing mainstream brand in recent years, as Lion has used its distribution power to get it into on-trade establishments in particular.

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Mike King
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