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You are at:Home»Features»Why UK businesses Should Consider Exporting to Australia
Australia trade overview

Why UK businesses Should Consider Exporting to Australia

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Posted By sme-admin on December 2, 2024 Features
Australia is emerging as a goldmine for UK exporters, particularly in food and beverage, retail, and other high-growth sectors. With a robust bilateral trade relationship, strategic location, and affluent consumer base, the country offers unparalleled opportunities for UK small and medium-sized enterprises (SMEs) ready to expand internationally.
UK food and beverage exports to Australia have more than doubled over the past decade, driven by the market’s demand for premium, sustainable, and innovative products. Whisky remains the leading UK food and beverage export to Australia, reflecting the appetite for quality British products. The Australian grocery market is highly concentrated, with 85% of all food and drink sales flowing through five major supermarket chains like Coles and Woolworths, offering streamlined access for SMEs entering the market.
Why Australia?
Australia combines the advantages of a strong, tech-savvy economy with cultural affinity and longstanding trade ties with the UK. The recent UK-Australia Free Trade Agreement (FTA) eliminates tariffs on over 99% of UK goods, accelerates customs processes, and enhances predictability for businesses looking to operate in Australia. Key reasons to consider exporting to Australia include:
  • Affluent Consumers: A GDP per capita of $68,626 USD and annual disposable income averaging $37,433 USD make Australian consumers among the world’s wealthiest, creating strong demand for premium products.
  • E-Commerce Growth: With 18% of retail spending now online, digital platforms like Amazon Australia, Catch, and The Iconic present exciting entry points for UK brands.
  • Gateway to Asia-Pacific: Australia’s location serves as a launchpad to the wider Asia-Pacific market, one of the fastest-growing regions globally.
  • Sustainability Trends: Consumers increasingly prioritise eco-friendly, organic, and innovative products, aligning with many UK businesses’ strengths in sustainability.
A Broader Opportunity Across Sectors
While food and beverage remain key exports, other sectors also show strong potential. For instance:
  • Retail and Hospitality: Australian retailers often look to UK market trends for inspiration, particularly in areas like AI-driven retail solutions and plant-based product lines.
  • Technology: The Australian tech and life sciences market is booming, with UK tech exports to the region estimated at £1.15bn in 2023. Demand for IT services, cybersecurity, and agritech solutions aligns with UK expertise.
  • Infrastructure and Clean Energy: Australia’s commitment to net zero by 2050 is driving substantial investment in renewable energy and transport infrastructure, opening doors for UK businesses specialising in clean technologies.

top uk exports to Australia

Expert Insights
Louise Cantillon, NSW Consul-General and Deputy Trade Commissioner for Australia and New Zealand, said: “Australia offers a compelling proposition for UK businesses. Our strong regulatory framework, sophisticated consumer base, and appetite for innovation make this a market where British expertise is not just welcome, but sought after. We are particularly seeing growth in demand for premium food and beverage products, sustainable solutions, and cutting-edge retail technologies—areas where the UK excels. My advice to UK SMEs is to take the leap, leverage available support, and embrace this exciting market.”
Recent trade missions, like the one led by the Department for Business and Trade (DBT), have given UK businesses first-hand insight into the opportunities and challenges of the Australian market.
Entrepreneurs like Chika Russell, Founder of Chika’s Foods, highlight the value of local knowledge:“The Australian market is highly segmented, with each state presenting unique challenges. By working with DBT, we’ve scaled our export business by 130% and gained invaluable market confidence,” she shared.
Euguene Patterson, Founder of Revibed Drinks, echoed this sentiment, stating:
“Our experience meeting buyers like Coles underscored the potential for scaling in a market that appreciates high-quality, innovative products.”
Support for UK Exporters
The UK Department for Business and Trade offers a wealth of resources to support businesses exploring the Australian market. From the FTA’s tariff eliminations to bespoke market entry advice, UK SMEs have access to step-by-step guidance, training, and connections through the Export Support Service.
For more information or to start your export journey, visit great.gov.uk.
The next free online event that may be of interest for businesses looking to export to Australia is taking place on December 9 on ‘How Free Trade Agreements can help you grow your business’
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