September 24, 2024 – Australia, known for its rich culinary diversity, is witnessing a significant change in food and beverage preferences. From rising demand for everyday staples to the growth of plant-based products, here we provide a comprehensive overview of the Australian market. Innova’s 360 research into food industry in Australia explores the shifts in consumer choices and dietary habits that are influencing innovation and development across various food and beverage categories.
Australian Beverage Trends
Australian consumers are seeking more non-alcoholic alternative beverages than alcoholic beverages. Despite this shift, the overall alcohol and beer penetration rate (54%) is higher than the global average (44%). Over the past year, there has been a 23% rise in non-alcoholic alternative beverage consumption influenced by health aspects. In non-alcoholic alternatives, consumers prioritize premium quality, product safety, and sugar reduction claims.
Food industry in Australia research displays that bottled water consumption is rapidly growing in the country due to its healthy image. The consumption of energy drinks, iced coffee, tea, juices, and smoothies are also rising over the past year, and taste is the top driver.
Hot coffee and tea consumption is rising as well, with taste being the main attribute. Consumers prefer natural and clean labels, traditionally made or crafted, product safety, and sugar reduction claims in hot tea and coffee.
Everyday Staples Trends
In Australia, consumer demand for fresh bread and cereal foods is fueling growth, with bread penetration reaching 81%, higher than the global average of 78%. Freshness and taste are key drivers, while health, novelty and variety appeal to those increasing their bread consumption. Claims related to sugar reduction, high fiber/protein, and natural ingredients play a significant role in consumer choices in both bread and cereal categories.
Dairy penetration in Australia is also higher than the global average; however, yogurt penetration is lower. Health aspects are a key driver across dairy for Australian consumers. The made with real ingredients/natural claim is the most influential factor for dairy purchasers, and they prioritize freshness, especially in milk.
Food industry in Australia research shows that meat and fish are also highly popular, with fish and seafood in particular rising fast in consumption rates. Health is the top driver for those increasing meat and fish intake, cited by around one-quarter of consumers for each category. Freshness, taste, and flavor are the top attributes for these categories, and consumers are interested in products that are locally sourced or produced and have a high source of protein.
Meal Preparation Trends
In Australia, 1 in 4 consumers are increasing their intake of meal preparation solutions, including bouillons, stocks, seasonings, table sauces, condiments, and ready meals. Bouillons, stocks, seasonings and ready meals have seen the highest growth, driven by demand for convenience and taste. Notably, 2 in 4 consumers are turning to ready meals for convenience, over-indexing the global average.
Food industry in Australia research displays Consumers prioritize taste and flavor across all meal preparation categories, and they also seek product safety and premium claims. Made with real ingredients/natural claims are more important in meal preparations to the Australian consumers, over-indexing the global average in each category like bouillons, stocks, seasonings, table and cooking sauces, condiments, dips, savory spreads, sweet spreads, and ready meals over the past year.
Australian Snacks and Treats Trends
In Australia, snack and sweet treat consumption is slowing overall, except for cereal and energy bars. Despite this, Australians are over-indexing the global average in snack and sweet treat penetration across all categories, driven by a demand for increased novelty and variety.
The desire for healthier snacks is evident in the rising demand for cereal and energy bars. Food industry in Australia research shows that 4% of consumers have increased their intake of these products over the past year. Consumers are drawn to bars with high fiber and fat reduction, reflecting a broader preference for healthier formulations. This food trend is further supported by the fact that consumers in Australia are over-indexing on fat reduction claims.
Consumers prioritize functional ingredient claims, especially in cereal and energy bars, while maintaining a strong focus on taste and flavor. Food trends in Australia shows that natural claims are also significant across all the categories, reflecting the broader trend toward healthier formulations.
Plant-Based and Special Diets Trends
Australian consumers are consuming more plant-based and special diet foods, especially meat substitutes and sports and functional nutritional products. Food trends in Australia reveals that 22% of consumers have increased their consumption of meat substitutes, driven by diverse factors. Health, environmental claims, increased variety and novelty, and more awareness of brands are key aspects for purchasers of plant-based meat and dairy alternatives.
Protein, fiber, and natural are top claims of interest for plant-based product consumers. In meat substitutes, consumers are influenced by product safety claims. Functional ingredients are key in milk and milk drinks, while fat reduction is influential in non-dairy cheese.
What’s Next in Food Trends in Australia?
Health is a key driver in the Australian food and beverage industry, with consumers prioritizing products rich in protein, fiber, and functional ingredients. Brands can leverage this by incorporating functional elements like calcium, iron, and probiotics into their offerings.
In the well-established Australian market, consumers are seeking product diversification and novelty, especially in everyday staples, snacks and sweet treats, driving increased uptake in these categories. To meet this demand, brands can introduce a variety of products that offer unique flavors and experiences.
Environmental claims and plant-based foods are also gaining importance, driven by growing awareness of sustainability and health. Brands that innovate with both health and environmental benefits are likely to shape the future of food trends in Australia.
This article is based on Innova’s Category Growth Drivers in Australia report. Find out more about this report by booking a demo or reach out to us using our Contact Form.
