Australia risks missing a major manufacturing opportunity in the booming global plant protein market unless it develops a national strategy, according to a new report from Food Frontier.
The report, Unlocking Australia’s Potential: The Case for a National Plant Protein Ingredient Industry, warns that despite strong agricultural output, Australia is primarily exporting raw crops while relying on imports for processed plant protein ingredients.
In 2023 alone, the report noted that the country exported 40.9 million tonnes of protein-rich cereals, pulses and oilseeds but imported 118,000 tonnes of processed ingredients – highlighting the gap in domestic manufacturing capacity.
Food Frontier argues that strengthening local manufacturing could shift Australia from bulk exports to high-value processing, delivering greater economic returns, supporting regional resilience and creating skilled jobs.
“A shift from bulk exports to high-value processing could enable greater domestic economic return, support regional resilience and meet growing demand for quality ingredients,” the report states.
The global plant protein ingredient market, valued at USD 24.1 billion in 2024, is forecast to nearly triple to USD 69.2 billion by 2032.
Countries including Canada, China and members of the European Union are already scaling their manufacturing capacity, while Australia risks being left behind if it does not take coordinated action.
The report identifies five major opportunities to grow Australia’s manufacturing base: diversifying production to meet global demand, replacing imports to boost food security, creating value-added industries for agriculture, establishing regional processing hubs, and integrating plant protein output with Australia’s bioeconomy.
But scaling the sector will require overcoming structural barriers such as high processing costs, limited technical support for food manufacturers, supply chain gaps, regulatory hurdles – particularly for hemp – and investor hesitancy without public co-funding.
At present, six companies operate in Australia’s plant protein ingredient manufacturing sector, with Manildra Group the largest, but overall capacity remains small compared to global peers.
Food Frontier recommends a national strategy with five core priorities: establishing a government–industry taskforce, investing in shared research and development platforms, driving demand through marketing and reformulation incentives, scaling up manufacturing through regional hubs and capital co-investment, and building skilled workforces and supply chains.
“With coordinated leadership, strategic investment and whole-of-government planning, Australia can transform its protein-rich crops into high-value ingredients, drive resilient regional growth and secure a differentiated position in a rapidly growing global market,” the report concludes.
