Could the next ‘boom’ for the Australian economy be fuelled by our food and beverage sector?
It has been widely speculated that this is where future growth for Australia will come from. The Australian Government has recognised the industry as one of the five pillars of
our economy, and estimates that it has the capacity to supply food to 60 million people globally. And the government is not alone in understanding the value and potential of the industry. In recent years it has attracted the attention of significant investors – private and incorporated, domestic and international, all wanting their share of the pie.
In mid-2016 Grant Thornton conducted a study of Australia’s food and beverage industry. Here are some of our key findings:
Food and beverage executives anticipate growth in:
- Revenue (83%)
- Profitability (77%)
- Employment (58%)
26% of executives indicated that M&A activity was in their business plan for the next 12 months
- 69% of executives plan to grow and improve capacity by investing in plant and equipment in the next 12 months
Funding is most likely to come from:
- Extending existing bank facilities (38%)
- Internal resources (22%)
Innovation and product development is the number one internal obstacle to growth
Download our report for a more in-depth look at how these challenges and opportunities will impact the food and beverage sector in coming years, and insight into how your business can invest for future growth.