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Food and beverage capability overview
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.
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.
Total food and beverage exports for 2003-04 were valued at A$22.3 billion (20 per cent of total Australian merchandise export).
In 2003-04, food and beverage exports to:
- Japan were valued at A$4.685 billion and hold the largest share at 18 per cent of the total.
- USA were valued at A$3.116 billion and account for 13 per cent.
- Indonesia were valued at A$1.124 billion and account for 4 per cent.
- Korea were valued at A$1.172 billion and account for a further 4 per cent.
Other leading markets for Australian food and beverage exports by value were UK (A$1.099 billion), Malaysia (A$850 million), China (A$709 million), Taiwan (A$596 million), New Zealand (A$928 million), Hong Kong (A$714 million), Saudi Arabia (A$790 million).
In 2003-04, 10 of the top 18 markets for Australian food and beverage exports were in Asia Pacific (ABS, International Trade, cat. No. 5464.0).
The main processed food export categories are:
- processed meat products (26 per cent)
- grains (21 per cent)
- wine (11 per cent)
- processed dairy products (10 per cent)
Other major categories are: seafood, confectionery and sugar, milled flour products, cereal and baked goods, processed fruit and vegetables (including snackfoods, nuts and fruit juices), alcoholic beverages (excluding wine), non-alcoholic beverages and edible oils and fats.
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.
The Australian native food industry is a small, but growing horticultural segment currently worth approximately $5 million at the farm gate or $14 million to the retail sector.
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: RIRDC)
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, the European Union 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
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 2003-04, Australia's confectionery exports were valued at A$267 million. New Zealand (A$71 million) was the main market, followed by Japan (A$51 million).
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).
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 2003-04 exports were worth A$282 million.
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 2003-04, exports of spirits were valued at A$59 million. A number of wineries also produce fortified wines and brandy.
The main export destinations are Japan, Korea, Philippines and Malaysia.
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 2003-04 were valued at A$37 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.
Sweetened carbonated waters and mineral waters make up 55 per cent of this segment, followed by fruit juice drink (25 per cent), cordials and syrups (10 per cent).
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.
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
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