5 exports tipped to drive Australia’s future economy
Thinking about exporting? Here are five industries you might want to look at.
While most of us naturally think of minerals as Australia’s most sought-after commodities, some other industries are tipped to become key players in our export market.
Baby food, beer and education are now among the sectors and sub-sectors expected to play major roles in the nation’s future economy.
Resources will still play a role but IBISWorld business information analysts are tipping five top new players in Australia’s export market.
Food manufacturing tops the list, with baby food and dairy as two sub-sectors expected to strengthen in the next five years.
IBISWorld General Manager (Australia) Karen Dobie said key markets would be China and India, where the growing middle class meant more people had access to these products.
“Revenue for Australia’s baby food manufacturing industry is forecast to grow by 2.9% per year over the next five years to reach $206.7 million, while revenue for dairy product manufacturers is forecast to grow by 2.1% to reach $12.8 billion,” Ms Dobie said.
“Exports are playing a key role in driving growth in both of these sectors. Baby food exports are anticipated to rise by 6.5% per year to $22.5 million by 2018-19, while dairy product exports are expected to rise by 5.2% per year, with milk powder and cheese exports performing particularly well.”
Oil and gas extraction come in next on the list of exports tipped to rise, as higher world prices drive investment in the industry.
“IBISWorld expects the number of export-oriented LNG projects to rise from two this year to nine by 2018, with construction of export facilities on the east coast tipped to prompt a dramatic boost in performance over the next five years”, Ms Dobie said.
Beer exports are also expected to raise some cheer, as local drinkers switch to alternatives such as craft beer and cider and manufacturers go looking for new markets overseas.
“Exports as a share of total industry revenue are expected to grow from 0.8% in 2008-09 to 1.4% by 2018-19, assisting to boost overall industry growth from a sluggish 0.9% per year over the past five years, to 1.7% per year in the next five years,” Ms Dobie said.
IBISWorld is expecting strong growth in the education and training sector, where there has been a steady increase in demand since the Global Financial Crisis.
Ms Dobie said industry revenue now sits around $26.6 billion and it is tipped to reach $31.9 billion by 2018-19. “International students are a major market for this sector, accounting for about 24.9% of total enrolments this year,” she said.
“Following annual growth of 7% prior to 2009, industry growth has cooled off somewhat because of the high Australian dollar, but the anticipated decline of the dollar in the next five years will act to boost enrolments from foreign students once again.”
Legal services come in at number five on the list.
IBISWorld expects exports as a share of revenue to rise as Australian firms play a bigger role in global markets.
“As business confidence gradually grows and businesses expand their global investment, mergers and acquisitions work will increase for legal services firms with an international outlook.”