An established, mature market with diversified opportunities
Australia is a highly developed, internationally competitive, advanced market economy, ranking 14th in the world by nominal GDP. In addition, Australia is the sixth-largest country by land mass, covering roughly the same area as the lower 48 U.S. states. The U.S. and Australia maintain a robust trading relationship underpinned by shared democratic values, common interests, and cultural affinities. Economic, academic, and people-to-people ties are vibrant and strong.
Australia is a highly receptive, open, and transparent market for U.S. products and services, with U.S. exports to Australia totaling $33.6 billion in 2023. This total has more than doubled since the U.S.-Australia Free Trade Agreement took effect in 2005. Australia is a strategically important market for Wisconsin exporters, with about one-quarter of ExporTech™ Program graduates identifying Australia as one of their top three markets for international expansion. Wisconsin exports to Australia totaled $812 million in 2023, ranking Australia as the seventh-leading destination for Wisconsin exports, with room for further growth.
Exclusive access
The Wisconsin Economic Development Corporation (WEDC) is organizing a Global Trade Mission to Australia from Nov. 8-16, 2024, with segments in Sydney and Melbourne. Wisconsin companies, whether new to exporting or looking to expand their exports into Australia, are invited to participate in this program. This trade mission provides an excellent opportunity for Wisconsin companies to identify and meet with prospective partners (distributors or representatives), intermediaries such as original equipment manufacturers, and/or end users to build upon existing business in Australia or to enter the market for the first time.
In each city, participants will be scheduled for customized one-on-one meetings with prospective partners in the market. These partners are chosen specifically for each participating company based on the company’s business needs and objectives. Each participating company will also receive personalized market intelligence detailing considerations to keep in mind when introducing their product or service into the Australian market. WEDC has eyes and ears on the ground in Australia in the form of an authorized trade representative—thus making it easier for Wisconsin companies to find local partners they can trust and taking some of the guesswork out of launching in a new market.
In addition to customized meetings and company-specific market intelligence, this program offers the opportunity to meet potential partners face to face and to visit their facilities so that you can gauge their sales and distribution capabilities most accurately. While virtual meetings and phone calls are great to establish contact and discuss opportunities, meeting potential partners in person can help to seal the deal and propel a business relationship forward.
Australia outlook
Australia’s economy grew by 1.8% in 2023 after growing 3.7% the prior year. Australia has remained an appealing and profitable market for Wisconsin companies for many years, with very few barriers to entry, a familiar legal and corporate framework, and a sophisticated yet straightforward business culture. With a metro area population of 5.1 million, Sydney has long been Australia’s largest city as well as its banking and commercial capital—home to the majority of company headquarters. While Sydney proper is still more populous, Melbourne’s metro area recently overtook it, with a current population of 5.3 million. Located in Victoria province adjacent to New South Wales, Melbourne was ranked the world’s most livable city for seven years in a row by the Economist Intelligence Unit, and currently ranks fourth and is known as a hub for the engineering, biotech, health technology, and energy/sustainability sectors.
Although it is important to understand and appreciate Australia’s cultural differences—and a country briefing offered as part of this program will cover the topic—it is also an ideal market for new-to-export companies, as well as those seeking to further expand their business/distribution networks in country. Australia is a market that seeks innovative, advanced technology product and service solutions. Wisconsin companies will find it to be a friendly market with many potential buyers for their products and services—especially if they offer innovations that solve problems for companies in their respective sectors.
Business connections
While companies in many different sectors will find opportunities in this market, companies in the following sectors are especially encouraged to participate:
- Life sciences and health care. Australia’s health care expenditure as a percentage of GDP is expected to double over the next 50 years. Elder care in particular is a priority, with Australia’s elderly population expected to double by 2057. What’s more, 80% of medical devices and diagnostics used in Australia are imported. In the current year’s budget alone, Australia’s government has committed to spend $85 billion USD to boost health infrastructure, resources, and support; New South Wales province is spending $7 billion USD on health infrastructure, including upgrades to 40 hospitals.
- Advanced manufacturing. Australia’s government has committed more than $1 billion USD to its Modern Manufacturing Strategy, with several funding opportunities available for businesses. In addition, the government has established the Advanced Manufacturing Growth Centres to drive innovation, productivity, and competitiveness in the industry. Manufacturing priority sectors include aerospace, defense, medical products, critical minerals and resource technology, food and beverage processing, recycling, and clean energy.
- Maritime. This industry adds the equivalent of $1.4 billion USD to Australia’s economy. Australia is the world’s fifth-leading user of shipping services, and 10% of the world’s sea trade passes through Australian ports. More than 95% of Australia’s exports are transported by sea. With pandemic-related disruptions in supply chains, there is increased demand for emerging technologies in automation, digitization, and e-navigation. In addition, the Australian government is embarking on a naval defense rebuilding program that includes $35 billion USD for submarines, $18 billion USD for frigates, $447 million USD for oilers, and $244 million USD for patrol boats.
- Consumer goods. Australia’s retail market for consumer goods is worth an estimated $148 billion USD, with its growth being driven by rising incomes as well as the growth of online shopping and the rise of multichannel sales platforms. Australians spent the equivalent of $36 billion USD shopping online in 2020, a 57% increase from the prior year. Australia’s is the 11th-largest e-commerce market in the world; leading platforms include eBay, Amazon, Gumtree, and kogan.com.
- Agricultural products. Australia imports a variety of agricultural products to supplement domestic production and to meet consumer demand for diverse food products. Some of the key agricultural products imported by Australia include fresh fruits and vegetables, processed foods, grains, dairy products, and meat and poultry, to name a few.
- Information and communications technology (ICT). Technology is Australia’s sixth-largest industry, contributing the equivalent of $85 billion USD to the economy each year, and it’s estimated that the tech sector could add another $35 billion to that value annually if Australia caught up to global leaders. Banking, finance, and insurance currently make up the largest portion of ICT spending in Australia; key areas for growth include digital health, artificial intelligence, agricultural technology, cybersecurity, and smart cities.
