Food, beer manufacturing to shape future export landscape
Business information analysts at IBISWorld have included food manufacturing and beer manufacturing among a list of the top five new exports, beyond mining commodities, set to drive Australia's economy into the future.
Australia is expected to generate $317.6 billion in export revenue in 2013-14, rising as a percentage of GDP.
According to IBISWorld general manager (Australia), Karen Dobie, macroeconomic factors are tipped to favour exporters over the next five years, particularly as a result of growing demand from Asian trading partners. Australian exports will become increasingly price competitive as the value of the dollar softens against the currencies of Australia's major trading partners.
Australia's high food standards and quality ingredients are the driving forces behind export growth in emerging markets. IBISWorld forecasts manufacturing sub-sectors – including baby food and dairy – to shine in the next five years.
"Revenue for Australia's baby food manufacturing industry is forecast to grow by 2.9 per cent per year over the next five years to reach $206.7 million, while revenue for dairy product manufacturers is forecast to grow by 2.1 per cent to reach $12.8 billion," Dobie said.
"Exports are playing a key role in driving growth in both of these sectors. Baby food exports are anticipated to rise by 6.5 per cent per year to $22.5 million by 2018-19, while dairy product exports are expected to rise by 5.2 per cent per year, with milk powder and cheese exports performing particularly well."
Key markets driving growth include China and India, which are exhibiting growing demand for a greater variety of high-quality products. Population growth and increasing wealth in the growing middle classes of Asian trading partners has made these products more accessible to a wider market.
IBISWorld expects Australian beer manufacturers will place an increased focus on new export markets in the Asia-Pacific region over the coming five years, as domestic consumption of traditional beer products – such as VB and Carlton – continues to fall as Australians opt for alternative beverages such as craft beer, cider and wine.
"Exports as a share of total industry revenue are expected to grow from 0.8 per cent in 2008-09 to 1.4 per cent by 2018-19, assisting to boost overall industry growth from a sluggish 0.9 per cent per year over the past five years, to 1.7 per cent per year in the next five years," Dobie said.
In 2013-14, IBISWorld expects total beer manufacturing industry revenue to be $4.7 billion, and this is forecast to rise to $5.1 billion by 2018-19.
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