Luxury and novel products
Demand for luxury and novel products is expected to reach $2.8 billion by 2030 at around 2% per annum growth.
Titled: Luxury and novel products
- Export opportunity is $1.1 billion
- Domestic consumption is $1 billion
- Export opportunity is $1.7 billion
- Domestic consumption is $1.1 billion
Luxury and novel products describe foods that consumers purchase at a premium relative to comparable options for desired characteristics or form of differentiation such as brand, quality and/or innovation. Example products include premium items such as luxury wines and high-end truffles, and novelty foods such as miniaturised vegetables or carbonated fruits.
Demand for luxury and novel products is expected continue, driven largely by global markets due to population and real income per capita growth. CSIRO analysis estimates the export opportunity for Australian luxury and novel food products to grow from $1.1 billion in 2018 to $1.7 billion by 2030. Premium export markets for Australia include premium beef and lamb, counter-seasonal fruit and vegetables, seafood such as rock lobsters and abalone, premium alcohol and products from artisans such as gourmet cheeses and cultured butters.
Success in these markets is dependent on the sector’s reputation for value, high quality, safety and sustainability.
While real wage growth should improve the willingness of Australian consumers to pay for premium food products, historical growth in real expenditure per capita on food and beverages has remained relatively flat, and nearly unchanged as a proportion of household spending over the last five years.
This is attributed in part to growth in industry productivity and competition (i.e. higher quality foods at better prices), and relatively higher growth in expenditure in other household priorities such as education, healthcare and housing.
CSIRO analysis estimates domestic consumption of luxury and novel products to grow from $1.0 billion in 2018 to around $1.1 billion by 2030 under current demographic and market conditions.
See full report for methodology and references.