In an industry with many moving parts, industry bodies become essential for providing cohesion, driving agendas, and being the voice for the sector they represent. Food & Drink Business invited three of Australia’s leading industry heads to share their reflections on the year that was and what’s on the agenda for 2025.
A year of innovation in food science
Australian Institute of Food Science and Technology (AIFST) CEO, Fiona Fleming.
2024 marked a significant year for the food science and technology community, collaborating to advance sustainable, health-focused, safe food systems crucial to food security, and environmental resilience. Here are some of the highlights and what lies ahead.
Sustainable Innovations
- Innovation in alternative proteins: 2024 saw advancements in the development and consumer adoption of alternative proteins, including cultured meat and plant-based options. Food scientists led breakthroughs in scalability, texture, and taste to make these alternatives increasingly viable and widely appealing.
- Precision fermentation developments: This technology, which uses microorganisms to produce specific proteins, saw advancements. Food scientists worked on optimising processes, enhancing nutrient profiles, and scaling these systems working towards widespread use in food production.
- Focus on food waste reduction: Food scientists contributed to significant strides in reducing food waste through research projects, ingredient optimisation, shelf-life extension technologies, and upcycled foods. These innovations are key in tackling Australia’s food security and environmental sustainability opportunities.
- Sustainable packaging solutions: Food scientists led innovations in sustainable packaging, introducing edible, compostable, and recyclable materials to help address the growing challenge of plastic waste.
- Addressing climate change impacts: The impacts of climate change on food production have been profound, and food scientists continue to be at the forefront of developing climate-resilient crops and production methods. This includes work on drought-resistant crops, sustainable agriculture practices, and alternative supply chains.
Nutrition and Health
- Nutrition science innovations: With a growing focus on health and well-being, food scientists continue to develop foods aimed at addressing nutritional gaps. Advancements continue with biofortified foods, personalised nutrition products, and the exploration of lesser-known nutrient sources.
Safety and Regulation
- Enhanced food safety technologies: In 2024, new tech-based food safety solutions gained traction, including rapid testing kits, and AI-driven analytics for predicting contamination risks. These innovations will be critical tools for reducing foodborne illnesses and ensuring consumer safety.
- Food allergen management innovations: Food scientists achieved notable progress in allergen management, with innovations in detection methods, manufacturing processes, and labelling practices to enhance consumer safety.
- Cell-based foods regulatory advances: Food Standards Australia New Zealand (FSANZ) advanced its work on the regulatory framework for cell-cultured foods, providing guidance on safety standards and labelling. Food scientists have been instrumental in working with regulatory bodies and industry stakeholders to shape the framework.
Building the Future Workforce
- Mentorship and educational programs: Programs to mentor and educate the next generation of food scientists were highly prioritised, particularly given the Australian talent shortage for food scientists (ANZSCO code 2342). These initiatives aimed to attract students to food science, elevate its importance, and support career pathways.
Looking Ahead
Following the 2023 Australian Food Story: Feeding the Nation and Beyond report from the inquiry into food security in Australia by the House of Representatives Standing Committee on Agriculture, the AIFST continues to advocate for a National Food Plan to ensure a sustainable and secure food future.
Key priorities include enhancing supply chain resilience, supporting local food manufacturing, and ensuring accessible, nutritious food for all Australians.
A National Food Plan would enable targeted initiatives such as supply chain improvements, growth in food manufacturing, and the establishment of a National Food Council to drive these goals forward.
The Australian food industry views the implementation of this plan as essential for the nation’s future food security and economic prosperity.
CSIRO projects the Australian food and agribusiness industry could be worth $250 billion by 2030 if growth continues at its current annual rate of around 2.4 per cent.
Improving supply chain resilience is particularly critical, as it boosts business, creates jobs, and stimulates economic development, especially in sectors like food manufacturing.
Developing a National Food Plan in partnership with the government will allow the food industry to address these challenges while aligning with broader economic objectives.
Integral to the implementation of a National Food Plan would be the appointment of a Minister for Food. The AIFST calls for a Minister for Food within the Department of Prime Minister and Cabinet to oversee the plan – including its development and implementation – and ensure its objectives are achieved.
As the Australian agrifood industry strives for a National Food Plan, food scientists will play a critical role in shaping a secure, sustainable, and health-centred food future. Through partnerships and innovation, AIFST will continue to lead the way in championing these goals for the benefit of all Australians.
An “issues rich” year for drinks
Australian Beverages Council CEO, Geoff Parker.
The past 12 months have seen a large amount of change and volatility right across the FMCG sector with non-alcoholic beverages in no way immune to these stressors.
At the household level, the rising cost-of-living pressures and uncertainty with interest rates means many are adjusting their normal purchasing patterns to compensate for pressure on disposable income and discretionary purchases. And although the year has seen a healthy market in beverages sales, they have been largely for in home consumption which has balanced the decline in out of home sales.
Indeed, 2024 has been an issues-rich environment at the industry level including a continued public health focus on the diet and silver bullets to tackle complex issues like obesity with everything from threats of a mandated health star rating, advertising and marketing bans and the perennial calls for a sugar sweetened beverages (SSB) tax.
A SSB tax for Australia would be hugely regressive, is discriminatory and has been repeatedly considered and rejected by numerous United Nations forums on non-communicable diseases. The call for a tax completely ignores the global and real-world evidence that slapping shoppers with another tax merely shifts purchases to other products and has no meaningful impact on obesity and the incidence of diabetes.
Taxing SSBs will exacerbate the cost-of-living crisis affecting ordinary Australians. In the 21st century we need more nuanced and sophisticated approaches to diet and lifestyle challenges.
Industry can be at the forefront of influencing consumer-led change and initiatives like the non-alcoholic drinks industry’s Sugar Reduction Pledge has already resulted in a significant decline in sugar consumption from drinks since 2015.
In simple sugar terms, the Pledge has meaningfully reduced sugar consumption by 192,000 tonnes. Over the same period, consumption of plain bottled water has increased fivefold.
These trends build on more than two decades of an industry-driven consumer shift towards low-sugar and no-sugar drinks and plain water. Despite this demonstrable reduction in SSB consumption, obesity and diabetes rates in Australia have continued to rise because of the complex nature of the problem.
Other challenges to production this year included carbon dioxide shortages, ports unrest, rising energy and labour costs, and a shortage of domestically availably rPET, all of which have put pressure on margins. The industry, however, is pleased with a warm early start to the summer season and is optimistic as we end the year.
So, what does 2025 look like?
Our industry’s commitment to environmental sustainability remains at the forefront through the ABCL Environmental Sustainability Roadmap to 2030 (ESR30) initiative, developed with SMEs specifically in mind to deliver them a one-stop shop of sustainability goals and commitments as well as a platform with which to speak to and promote these to key customers and markets.
Our ESR30 participants are moving ahead and progressing towards their sustainability goals at an accelerating rate.
As consumers become savvier on wanting better for the environment products, ESR30 offers participants an incredibly affordable and comprehensive solution to advance their sustainability agenda.
Our sector continues to lead the shopping trolley in taking responsibility for their packaging with good results. The most utilised plastic in our containers, PET, enjoys over 60 per cent recovery rate across container deposit schemes (CDS), a percentage far above any other plastic type or recovery pathway domestically, and in partnership with government, we believe that we can go further in 2025.
Innovation in the low and no-sugar space as well as a dedication to embedding sustainability at the forefront of manufacturing will remain in focus for the industry moving into 2025 and are wins for both people and planet.
We are bringing speed and scale to the efforts to meet consumer desire for beverages that are better for them and better for the environment, however, this is not without challenges.
Rising input costs coupled with raw ingredient supply chain pressures such at citrus crop failures in Brazil have been a feature of 2024 and we expect these to continue into the coming year.
Looking at sustainable manufacturing for the year ahead, it will be critical to ensure that domestically collected PET plastic, collected through CDS, remains in Australia and feeding the circular economy – rather than exported to support the sustainability credentials of other nations.
The non-alcoholic beverages industry has shown itself to be well positioned through a unified voice to meet these challenges head on as well as capitalise on the opportunities of 2025.
I am optimistic for the year ahead and look forward to the exciting time coming for our industry sector.
How food and grocery manufacturing can thrive
Australian Food & Grocery Council CEO, Tanya Barden.
Australia’s food and grocery manufacturing industry is at a crucial point. We need collaboration with government and constructive commercial relationships with our retail partners for food and grocery manufacturers to thrive.
What we do in these next few months will echo in the health of the sector for years to come. The upcoming Federal election, packaging reforms, energy security, preventive health reforms and the outcome of the ACCC supermarket inquiry will for the industry’s future.
Food and grocery manufacturing generates $163 billion in sales and supports over 280,000 jobs. It cannot be taken for granted.
The challenge
The industry is squeezed between rising costs, tight margins, and evolving regulations on one side and fast-changing consumer patterns that require investment in new and improved products on the other end.
Prices for gas, crucial to many food and grocery operations, have nearly doubled over the last year. Cocoa prices have spiked nearly 200 per cent this year, while paper packaging is up about 30 per cent. Inflation remains sticky for manufacturers.
Meanwhile, wholesale price increases don’t match these higher costs. This is evident in the seven per cent fall in industry profits in 2022-23. This leaves businesses with tough choices: shrink pack sizes, reduce quality, reduce product ranges, move production offshore or shut down.
If the situation hits breaking point, the case for Australian manufacturers to shift overseas builds quickly. This could create a dangerous dependency on imports. Australia risks losing access to its iconic, locally made products. Worse, we’ll be more exposed to supply chain shocks, like those experienced during Covid-19, or global trade conflicts.
It’s about more than business. It’s about food security, rural livelihoods, and the economy’s resilience.
Time for Solutions
To thrive, the sector needs the government to act. A “cost of doing business” agenda is essential, focused on boosting productivity and competitiveness. Tax incentives for automation and digitisation would increase efficiency, reduce costs, and help manufacturers compete globally.
Regulatory changes including the energy transition, packaging changes, climate disclosures will need manufacturers to make major investments. Without government support, these changes will take longer to implement and risk falling short.
Right now, food and grocery manufacturing is overlooked in the national productivity conversation. The focus is on critical minerals and green energy, which while laudable, paints an incomplete picture of Australia’s priorities. Food and grocery is Australia’s largest manufacturing sector, integral to daily life and the nation’s economy.
Finally, we need bold measures to drive investment. An investment allowance, offering accelerated tax deductions, would encourage manufacturers to spend on equipment, technology, and growth. This would shore up the industry’s future while helping to tackle inflation.
Protecting Manufacturing
The stakes are too high to ignore. The food and grocery industry touches every Australian household, from your breakfast cereal to your pantry staples and cleaning supplies. Its size, reach, and impact on everyday life make it a cause worthy of investment.
By supporting the sector with smart, long-term policies, the government can protect jobs, secure our supply chains, and strengthen the economy. The time to act is now. With the right approach, we can ensure Australian manufacturing not only survives but thrives for generations to come.
This article first appeared in the December/January 2025 edition of Food & Drink Business magazine.
