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 Globally, there has been an increase in processed food trade thanks to reduced trade barriers and the increasing diversification of retail and food-service operations.
Australian processed food and beverage products are recognised worldwide for their variety and healthy image. The industry is also known for innovative manufacturing processes and packaging technologies.
Simpler distribution systems are evolving because of regional and global sourcing of raw materials, growing demand for semi-processed and processed products, and more regional and global purchasing.
Consumer trends
Consumers have higher purchasing power and are becoming more sophisticated in their tastes. They are demanding fresher, healthier and more nutritious food, yet at the same time want more convenience and fast foods.
Increased consumer awareness of product and ingredient origins is driving growth for minimally-processed foods and stricter quality assurance programs.
General information
Australian total food exports for 2005-06 were valued at A$23.8 billion.
In 2005-06, total food exports to:
- Japan were valued at A$4.4 billion and held the largest share at 19 per cent.
- USA were valued at A$3 billion and accounted for 12.7 per cent.
- Korea were valued at A$1.2 billion and accounted for 5.2 per cent
- UK were valued at A$1.2 billion and accounted for 5 per cent.
- New Zealand were valued at $1 billion and accounted for 4.3 per cent.
Other smaller markets showing strong growth include India, Sri Lanka, Thailand, Mexico, Saudi Arabia and the United Arab Emirates.
The leading food export categories in 2005-06:
| Sector |
Export value ($billion) |
| Meat |
7.5 |
| Grains |
5.6 |
| Beverages |
2.9 |
| Dairy |
2.5 |
| Seafood |
1.2 |
| Horticulture |
1.2 |
| Other food |
2.4 |
(Sources: ABS, National Food Industry Scorecard 1996-97 to 2006-06)
In 2005-06, substantially transformed exports increased by one per cent to A$16.8 billion. Processed dairy products were up three per cent to A$2.6 billion, sugar up 41 per cent to A$1.6 billion, processed fruit and vegetable exports up nine per cent to A$547 million and flour mill and cereal food up almost eight per cent to A$468 million. (Source: Australian Food Statistics 2006)
Smaller categories include salt, herbs and spices, flavourings, ingredients and animal feed products. Gourmet products, organic products and products with native ingredients are found in a number of categories.
Australia native foods
The Australian native food industry is a small, but growing horticultural segment currently worth approximately $5 million at the farm gate.
The industry consists of:
- wild harvesters
- nursery operators
- commercial producers of raw produce
- processors of raw produce
- hospitality providers
- retailers food service operators
- tourism operators
Some growers operate as single-purpose enterprises, and others as networks, vertically integrated operations or wholesale/merchandising enterprises. Only a few native food businesses have an annual turnover of more than one million dollars. (Source: Rural Industries Research and Development Corporation)
The export of native products is at an early stage, with opportunities for native value-added products such as sauces, spices, pickles, chutneys, jams, oils and confectionery in the retail and food service sectors in niche markets throughout Asia, Europe and the USA. The bulk of product exported is dried, frozen or processed, often in combination with non-native food ingredients.
Native or ‘bush’ foods exports include:
- akudjura – a native bush tomato, which is used as a spice
- bush orange - used as a flavouring
- illawarra plum - sauced, pureed, pickled
- kakadu plum - used as a garnish
- lemon aspen - versatile citrus-flavoured fruit
- munthari - native cranberries
- quandong - wild peaches for jams and pies
- riberry - small pink berries
- wild limes - finger limes, round limes, desert limes (drought resistant); blood limes (hybrid of a finger lime and a mandarin)
- wild rosella - buds used for jams and chutney
Confectionery
Chocolate products make up the largest category of Australian confectionery, followed by sugar confectionery and chewing gum. Lines regarded as uniquely Australian are based on Australian fruit and nuts.
With increasing consumer focus on the health effects of excessive sugar and fats in foods, there is an increasing demand for low fat and reduced sugar or sugar-free products, such as health food bars and muesli bars.
In 2005-06, Australia's confectionery exports were valued at A$231 million. The main market is New Zealand (A$89 million), followed by Japan (A$40 million).
(Sources: ABS, National Food Industry Strategy)
The fastest growing export markets in Asia include Hong Kong, Taiwan, Singapore, Korea and Malaysia.
Kronos Fine Foods’ brand, Koala King exports 95 per cent of its production of chocolate-coated fruit and nuts, mainly to Japan.
Paton's Macadamias who pioneered and developed one of the world's largest ranges of destination boxes of chocolate macadamias and is now exporting these to over 80 countries (Source: CMA - Australian Confectionery Industry Profile 2004).
Beverages - alcoholic (excluding wine)
Beer and malt
Australia is one of the world's leading beer and brewing nations. Australia exports malt, beer and expertise in brewing technology and brewing construction. In 2005-06 exports were worth A$220 million (excluding brewing technology).
While two major domestic brewing groups dominate both local and export markets, a few boutique brewers are achieving increasing export success in niche markets in the UK and throughout Asia.
Japan is the largest market for beer exports, followed by Korea, the Philippines and Thailand.
Spirits
Australia is a small producer of spirits in a sector dominated by international brands. In 2005-06, exports of spirits were valued at A$52 million. A number of wineries also produce fortified wines and brandy.
The main export destinations are Japan, Korea, Philippines and Malaysia.
Beverages - non-alcoholic
Vigorous competition, innovative marketing techniques, flavours, packaging and delivery systems have ensured the industry is one of the most dynamic and progressive sectors of the Australian food and beverage market. Exports in 2005-06 were valued at A$33 million.
The range of non-alcoholic beverages includes carbonated diet and regular soft drinks, sports and isotonic drinks, bottled and packaged waters, fruit juices and cordials.
New Zealand is the largest market. Other export destinations for non-alcoholic beverages include Japan, Hong Kong, China, Taiwan, the Philippines, Singapore and Indonesia.
Most non-alcoholic beverages are packaged in PET bottles with aluminium can and glass packaging declining in importance.
(Source: Australian Food Statistics 2006)
For more information please visit:
www.agribusiness.asn.au - Agribusiness Association of Australia and New Zealand
www.abareconomics.com - Australian Bureau of Agricultural and Resource Economics (ABARE)
www.australianbeverages.org - Australian Beverage Council
www.afgc.org.au - Australian Food and Grocery Council
www.aifst.asn.au - Australian Institute of Food Science and Technology (AIFST)
www.affa.gov.au - Australian Quarantine and Inspection Service (AQIS)
backingaus.innovation.gov.au - Backing Australia’s Ability, Department of Education, Science and Training
www.candy.net.au - Confectionery Manufacturers of Australasia
www.daff.gov.au - Department of Agriculture, Fisheries and Forestry
www.foodscience.afisc.csiro.au - Food Science Australia
www.foodstandards.gov.au/foodstandardscode - Food Standards Australia New Zealand
www.nfis.com.au - National Food Industry Strategy
www.packcoun.com.au - Packaging Council of Australia
(Last updated: 19 Aug 2007) |