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BMI View: Food and drink sales will experience robust growth throughout our
forecast period to 2020, especially given the sector's existing level of
development. The adoption of healthier lifestyles will be a main driver of
long-term change in the sector, translating into growth opportunities in
organic/natural foodstuff but declining consumption of alcoholic drinks,
Key Trends & Industry Developments
■ Consumer spending will recover only slowly in 2016 as the Australian economy
continues to face the headwinds of low commodities prices.
■ As consumers adopt healthier lifestyles, they will favour food categories with
high nutritional content and turn away from foodstuff with high sugar or fat
■ We expect alcohol consumption (in volume terms) to decline over the next five
years, as Australian consumers increasingly favour quality over quantity.
■ In the food retail sector, the high level of investment from German discounter
Aldi and the potential market entry of Lidl will continue to put pressure on