Overview

As educated, affluent consumers, Australians are willing to try new products.  The population has absorbed a growing number of newly arrived immigrants from all over the world who bring with them diverse dietary tastes.  In addition, foreign travel is relatively common, especially by the generation now entering the work force, and these consumers have broadened their culinary horizons. 

Australian demographics are similar to those in the United States, with a large number of two-income families and the consequent need for more processed and consumer-ready foods.  Australian consumers are oriented toward the same factors that many U.S. consumers seek - freshness, wholesomeness and healthy lifestyles.  To a large extent, they are prepared to pay extra for them.

Given Australia's large agricultural base, market prospects for U.S. food products are best in areas drawing on innovative products, economies of scale, and the U.S. position as a counter-seasonal supplier of fresh product (for information on food export restrictions into Australia, see Chapter 5).  Total exports of U.S. food, forestry and fishery products to Australia in 2006 were about US$599 million.  The nature of agricultural products exported from the United States to Australia consists mainly of consumer-oriented and intermediate food products.

The United States faces stiff competition in this market from European and Canadian suppliers, as well as from specialty suppliers in other Asian countries.  Domestic production is also well established and growing in product lines.  Foreign investment in the Australian food sector is substantial, with many large multinational companies participating.

Best Prospects

The organic and natural products market in Australia is growing rapidly.  Although Australia is a large producer of organic raw products, it does not have the manufacturing capacity to satisfy demand for the processed segment.  Prospects are excellent for organic and natural ingredients as well as consumer-ready processed foods and beverages.  Examples of this are the rice & grain cakes segment of the biscuits category which experienced growth of 21 percent in 2006.  Likewise, organic pasta sauce was the best performing segment of the pasta sauce category.

The Fruit/tea drinks segment continues to perform well with overall growth by grocery volume of 24 percent in 2006.

The Sports and energy drinks segments are now the best performing in the cold beverage category with volume growth of 33 and 28 percent respectively in 2006.  The value of these two sectors is now US$123 million - a rise of US$41 million over the 2005 value.

Breakfast Cereal – the ‘portables’ segment of this category has shown the most growth in 2006 with a volume increase of 24 percent.

To view individual commodity reports produced by the Foreign Agricultural Service please go to the following website: http://www.fas.usda.gov/scriptsw/attacherep/default.asp or contact the Agricultural Counselor at the American Embassy in Canberra at:

Foreign Agricultural Service
American Embassy
Moonah Place
Yarralumla ACT 2600
Australia
Tel: 61-2-6214-5854
Fax: 61-2-6273-1656
Email: AgCanberra@N0SPAM.usda.gov