Market opportunities
Major markets for premium Australian fruit and vegetable ingredients have promising projected growth in demand in China, Indonesia, India and the UAE.
Markets for fruit and vegetable ingredients
Premium ingredients extracted from fruits and vegetables can add nutritional, structural, flavour and other benefits to processed foods, beverages or functional foods and nutraceutical products.
Gippsland produce provides opportunities to create high value health-driven commodity and specialty ingredients.
Australia is potentially well positioned to supply global markets with naturally healthy foods and plant-based products because of it’s clean, green brand.
Market segments for commodity and specialty ingredients (above) and end use of ingredients in consumer products (below)
Australian market
More than 1500 new vegetable-based products were launched in Australia between 2015 and 2016.
The estimated growth in consumption of specialty fruit and vegetable ingredients in Australia from 2017-2021 is 6% or $41 billion.
Export markets
Exports of Australian processed fruit and vegetables account for approximately 49% of revenue for local processors and less than 27% of the total volume produced.
The value of exports has increased strongly over the past five years as larger Australian players serve the expanding populations and incomes of the middle class in Asia and the Middle East.
Market demand for premium Australian fruit and vegetable ingredients in Asia and the UAE is booming. The estimated growth from 2017-2021 is 15-49%.
Market size and growth (2017-2021) of packaged food markets and growth in consumption of fruit and vegetable ingredients. Source: Euromonitor 2017
Nutraceutical ingredients
Many of the specialty ingredients described above can have nutraceutical properties, and often offer higher marginal returns on sales. Nutraceuticals are defined as active ingredients offering health benefits beyond basic nutrition.
The rapidly growing market for nutraceuticals presents not only a regional opportunity in Australia’s key export markets, but also a global opportunity.
Connecting Australian feedstock supply with demand for fruit and vegetable ingredients
The demand for Australian fruit and vegetable ingredients in selected export markets is enormous and is currently unmet within the Australian food industry.