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Government of South Australia - Department of Industry, Innovation and Science

    Food and beverage

    A competitive advantage sector for manufacturing in South Australia

    Food and beverage is the largest manufacturing sub-sector in South Australia, accounting for nearly 50 per cent of all manufacturing activity.

    Our state has a global reputation for premium produce, most notably wine, beer and spirits, meat, smallgoods, seafood, dairy, baked goods, confectionary products, cordial and fruit juices.

    The value of Food and Beverage in South Australia

    50%Share of all manufacturing in SA
    50%of Australia's bottled wine
    80%of Australia's premium wine
    1 billionbottles of SA wine being enjoyed globally

    The opportunity

    Within this vast and diverse sector, a range of opportunities for growth exist in new product development such as premium no and low alcohol wine, plant-based products, and functional foods such as high-protein, gluten free, low sugar and more.

    As manufacturers across the sector look to expand into new markets, regulation and compliance requirements are driving innovation and new manufacturing prospects. New challenges, particularly in European markets, include management of food waste, sustainability, traceability, high fat, salt and sugar (HFSS) foods, and packaging.

    Businesses are required to meet stringent Environmental, Social and Governance (ESG) criteria to maintain international trade and exports, and this pressure is expected to increase as new regulations are introduced.

    These challenges are driving new opportunities as we strive to create solutions, such as transforming waste materials into value-added products, composting with application back to farms, anaerobic digestion, technologies that provide an alternative power source, and nutrient rich by-products for agricultural use.

    There are significant opportunities to add value to South Australia’s produce, particularly grain, pulse, and oilseeds. Others such as hemp, macro, and micro-algae have a range of future uses including food, fibre, biofuels, chemicals, and animal feed supplements.

    New manufacturing in South Australia

    New product development opportunities are already underway to enter new markets and follow emerging consumer trends.

    New trials into low volume production of no and low alcohol wines

    Almost $2 million is being invested by the SA Research and Development Institute into machinery at the University of Adelaide to enable winemakers to trial no and low alcohol wine using as little as 150 litres of wine.

    Increased research capability into plant-based foods

    A plant-based food pilot laboratory has been established at the Waite Research Precinct to enhance South Australia’s research capability into plant-based foods.