Market research: Aussie beverages continue growth path

Australian beverages continue to grow within the SMB manufacturing sector, according to new figures released by inventory management software brand Unleashed.

The Unleashed Manufacturing Health Index analyses businesses across 12 manufacturing subsectors in Australia, NZ and the UK to assess the overall health of the sector.

While most Australian SMB manufacturers saw sales revenue stall this quarter after enjoying their best quarter in five years, only two sectors saw revenue growth within the quarter — Beverages and Construction & Building.

“While it’s disappointing to see sales revenue drop in Q1 2024, there have been stand-out performances in some categories, notably Beverages,” said Unleashed’s Jarrod Adam.

Beverages had a 24% increase since the previous quarter. The report findings mark a high revenue trajectory for the Beverages sector, up 43% year on year, the highest of any subsector.

While Australian beverage makers have thrived, their compatriots in food have sputtered, dropping 13% in sales revenue in the last quarter and 16% year on year.

The Beverages sector has also seen a reduction in lead times. The current performance of 10 days to receive goods is down 36% on the previous quarter and marks the fastest lead times of the 12 Australian manufacturing subsectors in the report.

Although the majority of the manufacturers in the report are B2B firms using traditional sales channels, Australian manufacturers are increasingly diversifying their sales models. 48% of Australian and New Zealand firms are now using or have used e-commerce tools, up from just 4% in 2021.

“Year-on-year growth is heading in the right direction after a couple of years and it’s promising to see just how much emphasis these SMBs are putting on productivity gainers like better stock control and diversified sales channels,” Adam said.

Image credit: Kanawa_Studio