Why this is important to Wisconsin businesses: Wisconsin food and ingredient businesses could find the Australian market hungry for new products, especially for healthy food and drinks.
Australia’s culinary reputation may center around its vegemite spread and “shrimp on the barbie,” but the country’s cuisine ranges well beyond those iconic foods to delicacies that are becoming more available worldwide.
Food and beverage processing is Australia’s largest manufacturing industry, according to the Australian Trade and Investment Commission, and it offers many opportunities for Wisconsin exporters. Companies with products such as ingredients, processed foods, packaging solutions or catering equipment may find interest from potential partners in Australia.
As a result of the COVID-19 pandemic, Australian companies also are looking for technology that can make deliveries more efficient and can solve labor shortages.
In 2020, Australia’s food industry production amounted to $191 billion AUD ($133 billion USD), an increase of 8% over the previous year, and it involved nearly 16,000 businesses, according to the U.S. Department of Agriculture’s Foreign Agricultural Service.
In the retail market, four companies dominate, with more than 80% of sales, and they offer opportunities to exporters to supply branded products as well as ingredients used in the growing segment of supermarket private-label products.
In addition to major supermarkets, other potential retail partners include convenience stores, delicatessens, butchers, food and vegetable vendors, and specialty establishments that include food products among their offerings.
Consumer demand has been increasing for healthy options that are plant-based or organic, and Australia is a prime source for those products. Australia has 30 million acres of certified organic land, and since 2000, the country’s organic industry has more than doubled in value. There are currently more than 2,500 organic operations throughout Australia, representing all levels of the supply chain.
Australians also like to dine out, and restaurants are again becoming vibrant, competitive and highly fragmented. Casual dining is still popular, and U.S.-themed restaurants are a continuing trend.
Trade shows—such as foodpro, scheduled July 23-26, 2023 in Melbourne— can be a good way to explore business opportunities. Wisconsin food and beverage companies should review import restrictions, food safety requirements and packaging guidelines before approaching a potential partner. Another consideration is that shipping costs into and around Australia may be high. WEDC’s Global Trade and Investment Division can help companies research these considerations.