Out of Home Opportunities

Each fortnight we’ll be offering independent advice, insights and recommendations to FMCG manufacturers and suppliers, to help expand your business in the out of home channel.

Why choose the out of home market for your business?

Australia’s out of home channel currently:

  • Maintains 37% share of the total food and non-alcoholic beverage market
  • Represents a value of over $18 billion per year
  • Services over 100,000 outlets across the country

Make no mistake – your business will flourish within this market – but how well positioned are you to maximise on the opportunities it presents?

With the right strategy and execution, your company can sell more product and at better margins – helping you to maximise profit and your return on investment.  

Which sectors does the out of home channel service?

With today’s busy lifestyles, meals are more frequently being eaten outside of the home – and consumers are quick to seek out food which is of good quality, flavoursome, quick and convenient.

The out of home market satisfies this demand, with businesses like yours selling product to a host of outfits outlets including cafés, restaurants, clubs, hotels, independent fast-food chains, convenience stores and catering businesses.

If your product is scalable, the out of home channel also welcomes bulk products which are required by hospitals, military and correctional facilities, as well as the growing aged care sector.

The market is forecast to grow at a significantly faster rate than the retail channel over the next five years. This is largely due to changes in demographics and lifestyle trends. With Australia’s population increasing 1.9% year on year and real expenditure growth in non-grocery food & beverage channel exceeding 2% the over 65s representing a leap from 16% to 25% of the population in the next 15 years, more consumers will be accessing the out of home market.

The challenges

With the retail market becoming increasingly difficult diversification is the key, you need to seek other markets and change your customer mix – the out of home channel represents a significant opportunity

This is a diverse and complex channel, where businesses need a clear understanding of the players within and competitors, as well as a robust commitment to the requirements for meeting consumer demand.

Navigating the route to out of home buyers, and managing the logistical complexities of the channel also requires a different strategy from selling to retailers.

Tips for your business to thrive in the out of home market

  1. Review an existing, or establish a new strategy to increase sales, share and profitability within the market.
  2. Evaluate the opportunities and explore those that pose a lower risk.
  3. Assess your product and customer demographics – are they the right fit for the segments in which the market is growing within?
  4. Increase your business acumen within the market with IT expertise and adapt to changes in the industry, such as digital media connectivity and applying advances in cooking technology to your product.
  5. Consider your approach to the market; one size does not fit all- customers have differing needs adapt and customise products / service to suit
  • within Aged Care, the different requirements of retirement and nursing homes may directly impact the success of your product sales – such as centralised kitchens
  • within the Casual Dining sector; remember, what works for Grill’d may not for Zambrero’s

What’s next for your business?

If you’re looking to approach the out of home market, your business will hugely benefit from expert advice and guidance.

FoodServeX consultants have the expertise and contacts to help you identify opportunities within the market, so you can watch your business grow.

Contact us today to explore new commercial opportunities, improve product sales and increase your profitability.