The Australian market has seen a great surge in Italian imports in recent years, indicating broad consumer taste for all things “Made in Italy”, with special emphasis on authentic Italian-made food products.
Whilst there remains a shortage of official data on Italian product consumption in Australia, import records reveal a compelling story – a diverse range of products, from processed tomatoes to fine wines, pasta to chocolate, have garnered substantial attention from Australian consumers.
According to data from the Australian Bureau of Statistics, F&B imports from Italy to Australia have reached a value of $1.13 billion in the year ending December 2022, a year-on-year increase of 15.6 percent.
“Across the past 10 years, we have seen the value of all Australian F&B imports double,” says Simona Bernardini, director of the Italian Trade Agency’s Sydney office, “with Italy maintaining fifth position in the world rank as one of the major trade partners for Australia in front of other European countries.”
Italy has emerged as Australia’s top trade partner for processed tomatoes, securing a substantial 71 percent market share valued at $123 million. It is also Australia’s primary supplier of pasta – the quintessential Italian food product for most Australian consumers – with a 19 percent share at $90 million. Italy is also at the front of the pack in multiple F&B categories, including wine ($131 million), chocolate and products containing cocoa ($89.5 million), cheese ($80.5 million), baked products ($50.6 million), sauces and mix condiments ($65 million) and olive oil ($32 million).
“Major Italian players such as Lavazza, Barilla, Ferrero, and Campari have successfully navigated the Australian market by strategically focusing on marketing and communication”, observes Bernardini.
Despite these achievements, she maintains that there is a vast untapped potential beyond pasta, citing the diversity of Italian culinary delights: “Italy has a huge variety and number of food products to offer, still unknown to Australian consumers,” she emphasizes. “The food processing industry plays a vital role in the economy of our country.
“Over the years, manufacturing processes have become more advanced, and many companies continue to invest in cutting-edge technologies. We also offer an extensive range of organic and ‘free-from’ products designed for people with food intolerance and allergies.”
Italy’s dedication to sustainability aligns well with Australian consumer preferences. However, Bernardini acknowledges the need for more transparent regulations in Australia, saying: “Clear regulations are needed, firstly in product labelling and to limit greenwashing practices.” Scrutiny from the Australian Competition and Consumer Commission – which has clamped down on claims of sustainability – underscores the importance of authentic communication in this area.
Italy’s agricultural sector is considered amongst the greenest in Europe, with the least number of agri-food products containing irregular chemical residues. It is the second country in the EU for agricultural land dedicated to organic farming, and the second country in the world for the export of organic products. Italy features about 840 geographical indications certified as “protected designations of origins” (PDO) and “protected geographical indications” (PGI) also recognised by EU regulations, and which guarantee high-quality standards of a wide variety of food products, wines, and spirits.
E-commerce remains a pivotal avenue for Italian businesses to broaden their reach in the Australian market. Whilst in other countries Italian food companies have been working actively on digital platforms and marketplaces, accessing the Australian online market involves long-term planning due to transport, food perishability, standards, quotas, and import duties’ impact on imported products.
“We hope that in the future there will be further development in the Australian market,” says Bernardini, “with an expansion of marketplaces and digital platforms more focused on the F&B segment that could become the springboard for more gourmet food available through online channels.”
As far as Bernardini sees, there lies significant potential ahead for the Italian/Australian trade relationship, especially in the F&B category. The Australian demographic features a good number of dual-income households, with poor time for cooking and a steady demand for ready-to-eat foods. At the same time, Australians are becoming more oriented to freshness, wholesomeness, and healthy lifestyles – to a large extent, they are willing to pay a “premium price” for food with those characteristics. For these reasons, many Australian importers visit Italy at least once a year to see what’s new, and to place orders if they find products that fit the demand.
“As educated and affluent consumers, Australians are willing to try new products,” she says. “Furthermore, the country receives a growing number of immigrants from all over the world, bringing with them different food tastes and boosting the diversity of the culinary scene in Australia. In addition, Australians love to travel, and often they take time to visit Europe and Italy, bringing back memories of the food and flavours they enjoyed abroad.”