Highlights of the Report
Australia’s Current Situation
- Australia exports over AUD $40 billion worth of food and beverages each year, and 88% of these exports are bulk commodities.
- While Australian SMEs rank among the most innovative in the world, FIAL has found that only 5% of our employing food and agribusinesses are ‘businesses of tomorrow’ that actively pursue new markets, take risks, connect well to end markets and continually invest in capability and knowledge.
Projections and Trends
- Less predictable growing conditions, more connected global value chains and customers who demand healthier, more convenient and traceable foods are the major trends influencing food and agribusiness in Australia.
- By 2021, markets for naturally healthy (≃AU$367 billion), food intolerance (≃AU$43 billion) and organic products (≃AU$56 billion) are expected to have grown at up to 4.5% compound annual growth rate.
- The global edible insect market is expected to grow from ≃AU$42 million in 2014 to over AU≃$656 million by 2023.
- Australian businesses are increasingly value-adding. For the first time in Australia’s history, value-added/premium foods accounted for the majority (6%) of food export growth in the three years to 2016.
Value-adding Opportunities for Growth
- Products for health and wellbeing, including free-from and natural foods, supplements, fortified and functional foods, and personalised nutrition.
- Sustainability-driven products and processes, including those that convert waste, provide alternative protein sources, sustainable packaging and green and ethical value chains.
- Premium foods, including high-quality, convenient, fresh and packaged products; luxury products and gifts; tourism; and novel tastes, smells and textures.
Growth Enablers to Equip Food & Agribusiness for the Long Term
- Traceability and provenance: Food fraud costs the global food industry an estimated ≃AU$50 billion each year. Key technologies in the F&A sector include digital tracking (RFID chips, bar codes, QR codes, blockchain) and biological readings (isotopic analysis, DNA fingerprinting, biomarker compounds).
- Food safety and biosecurity: Technologies that can increase food safety include microwave assisted thermal sterilisation and advanced packaging, such as labels that change colour with temperature or time, release preservatives or absorb moisture or odours.
- Market intelligence and access: There is a significant lack of market intelligence within Australian F&A SMEs. Sensors and data analytics can track the end consumer and how the product is being used. Additional research can better understand regional preferences of different markets, especially in Asia.
- Collaboration and knowledge sharing: Regional clusters, business consortia and more holistic R&D solutions will enhance the collaboration needed to generate scale, efficiency and agility across value chains and markets.
- Skills: In coming decades, companies will need employees with broad-ranging skills, combining technical knowledge with an understanding of supply chains, experience with digital platforms and strong interpersonal skills. Both tertiary education and more structured on-the-job training have a role to play in developing these skills.
Download and read the Report here