Australia Wheat Market Size, Share Analysis and Forecast Report (2024-2032)

Australia Wheat Market Trends

The Australia wheat market makes a significant contribution to the national economy by generating jobs in farming, processing, and distribution. It provides considerable export opportunities, positioning Australia as a leading wheat exporter. Known for its high quality, Australian wheat is versatile and serves multiple purposes, while ongoing research aims to improve yields and efficiency. According to ABARES, the gross value of Australian wheat production is projected to rise by 10% to USD 10.7 billion in 2024–25.

The growth of the Australia wheat market is further strengthened as sustainable farming practices are increasingly being adopted by Australian wheat growers, promoting environmental responsibility. The industry also supports rural development by creating livelihoods and boosting local economies. Additionally, it plays a crucial role in food security by ensuring consistent production and features climate-resilient varieties that can adapt to changing conditions, complemented by technological advancements that improve efficiency. ABARES forecasts that Australian wheat production will increase to 31.8 million tonnes in 2024–25.

Australia Wheat Market Growth

The Australia wheat market is strengthened by robust supply chains that guarantee timely delivery of products. It provides diversification opportunities for farmers, enabling them to expand their crop variety and income streams. This sector creates jobs in various domains, is culturally significant within Australia’s agricultural heritage, and encourages community support through local initiatives. In September 2024, GrainCorp announced the introduction of a new high-yield wheat variety tailored for Australian conditions. This innovative wheat aims to boost productivity and resilience against climate challenges, assisting local farmers in achieving better harvests and enhancing the overall wheat supply chain.

The Australia wheat market is thriving due to increasing global demand, which supports price stability and market growth. Collaborative networks among industry associations facilitate knowledge sharing among farmers. Educational initiatives are a key trend of the Australia wheat market. They enhance best practices, resulting in increased yields, while sustainable farming supports soil health and biodiversity. The industry also adjusts to consumer preferences for organic and speciality grains. In June 2024, Nutrien Ag Solutions introduced a new seed treatment for wheat crops aimed at enhancing disease resistance and promoting healthier growth. This product seeks to help Australian wheat farmers maximise their yields while minimising reliance on chemical treatments, thus supporting sustainable farming practices.

Australia Wheat Market Insights

• According to the Department of Agriculture, Fisheries and Forestry (DAFF), Australia is a significant wheat producer, contributing 3% of global wheat output and 10–15% of international wheat trade.
• Industry reports indicate that in 2022–23, Australia exported 41.2 million tonnes of wheat, with Western Australia and New South Wales responsible for over 60% of the total sales.
• According to ABARES, the gross value of Australian wheat production is projected to rise to $10.7 billion in 2024–25, primarily due to increased output.

Industry News

September 2024

The commercial cultivation of genetically modified wheat advanced when Trigall Australia secured approval for the Argentinian-developed HB4 variety field trials. The Office of the Gene Technology Regulator approved the licence, permitting the GM wheat to be grown at ten sites yearly, totalling 20 hectares.

December 2023

The commercial cultivation of genetically modified wheat advanced as Trigall Australia secured approval for the Argentinian-developed HB4 variety field trials. The Office of the Gene Technology Regulator approved the licence, permitting the GM wheat to be grown at ten sites yearly, totalling 20 hectares.

Australia Wheat Market Drivers

Sustainable Farming Practices

The Australia wheat market is being strengthened as more wheat growers embrace sustainable agricultural practices to promote environmental stewardship. These methods include minimising chemical use, implementing crop rotation, and adopting conservation tillage to enhance soil health and biodiversity. This transition not only responds to the increasing consumer demand for sustainably sourced products but also assists farmers in adapting to climate challenges, ensuring the long-term viability and resilience of wheat production. The market is increasingly demonstrating a commitment to eco-friendly initiatives, which can enhance profitability and open doors to premium markets. In October 2024, the Australian government, alongside Wheat Australia, launched a new initiative to promote sustainable farming practices for wheat cultivation, focusing on innovative techniques and technologies to improve soil health and crop resilience.

Technological Advancements

The Australia wheat market is witnessing a wave of technological innovation, particularly in precision agriculture and data analytics. Farmers are increasingly employing GPS technology, drones, and soil sensors to optimise crop yields and enhance resource management. These advancements improve operational efficiency, lower costs, and facilitate better monitoring of crop health. Consequently, producers can make informed decisions based on real-time data, resulting in greater productivity and sustainability. The adoption of modern farming techniques is becoming crucial for maintaining competitiveness in both domestic and international markets. In November 2023, the Australian government, in partnership with AgriTech Innovations, launched an advanced precision farming initiative focused on wheat production, utilising sophisticated data analytics and IoT technology to optimise crop management, improve yields, and minimise resource usage.

Opportunities in the Australia Wheat Market  

Climate Adaptability

The Australia wheat market is experiencing a boost as new varieties are increasingly developed to tackle climate-related challenges like drought and extreme temperatures. Breeding programmes are concentrating on creating more resilient strains capable of thriving in changing environmental conditions. The Australia wheat market dynamics and trends are being influenced by adaptability, which is essential for sustaining production levels in the face of climate variability and ensuring food security both locally and globally. Farmers are also adopting water-efficient irrigation techniques and investing in research to improve resilience. This focus on climate adaptability is becoming a fundamental aspect of Australia’s wheat strategy, safeguarding future harvests and market stability. In October 2024, the Australian government, in collaboration with the Climate Resilience Group, launched a new programme aimed at developing climate-resilient wheat varieties. This initiative seeks to provide farmers with the necessary tools to address climate challenges, ensuring sustainable production and bolstering food security.

Market Restraints

The Australia wheat market faces several key restraints. Climate variability, including droughts and floods, can disrupt production and lead to inconsistent yields. Competition from countries like the US and Canada presents pricing challenges for Australian growers. Supply chain disruptions, stemming from transport issues and global trade tensions, can increase costs and hinder access to international markets.

Changing consumer preferences towards organic products may reduce demand for traditional wheat. Regulatory challenges impose compliance costs, while ongoing labour shortages impact operational efficiency. Pests and diseases threaten crops, adding further risk, and fluctuating input costs pressure profit margins. Addressing these issues requires strategic planning and investment in technology and sustainable practices.

Australia Wheat Industry Segmentation 

“Australia Wheat Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments: 

Market Breakup by Type

• Whole/Raw
• Flour
• Others

Market Breakup by Application

• Feed
• Food
• Biofuel
• Others

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Australia Wheat Market Share

By Type Insights

The Australia wheat market is experiencing growth as whole/raw wheat is highly nutritious, preserving essential vitamins, minerals, and dietary fibre that contribute to improved health. Its consumption is associated with a lower risk of chronic diseases, such as heart disease and diabetes. Additionally, raw wheat supports sustainable farming practices, meets the increasing demand for whole foods, and provides versatility for various culinary uses. In July 2024, Health Food Co. launched a new range of whole/raw wheat products with an emphasis on organic sourcing and environmentally friendly practices, aligning with the rising consumer interest in health-focused food options.

As per the Australia wheat market analysis, flour is one of the leading segments and is expected to grow at a CAGR of 1.3% during the forecast period. It is a crucial ingredient in many food products, including bread, pasta, and pastries, catering to diverse culinary requirements. The flour milling industry plays a significant role in boosting the local economy by creating jobs. Australian flour is renowned for its quality, and the industry encourages innovation, resulting in the development of speciality flours that align with consumer trends. In August 2024, Flour Innovations Pty Ltd introduced a new range of speciality flours, including gluten-free options, to meet the evolving preferences of consumers, enhancing the variety of products available in Australian supermarkets.

By Application Analysis

As per the Australia wheat market report, feed is the leading application in the industry. Wheat acts as a high-energy feed source for livestock, providing vital nutrients that boost growth and productivity. Its cost-effectiveness helps farmers lower feed costs, while strong demand supports the growth of the Australia wheat industry and rural economies. Wheat's versatility allows for various feed types, and using by-products promotes sustainability by reducing waste. In May 2024, AgriFeeds Australia launched a new line of wheat-based animal feed products aimed at livestock, highlighting their nutritional benefits and cost-effectiveness, which supports local farmers and enhances the sustainability of Australian agriculture.

The Australia wheat market benefits as wheat can be transformed into biofuel, helping to meet Australia’s renewable energy goals, and decreasing reliance on fossil fuels. Biofuel is expected to grow at a CAGR of 1.3% between 2024 and 2032. Biofuels derived from wheat generate lower greenhouse gas emissions, supporting climate change mitigation efforts. This sector provides farmers with new income opportunities, enhances energy security by reducing fuel imports, and encourages innovation in sustainable agricultural practices. In August 2024, Biofuels Australia introduced a new biofuel product derived from wheat, designed to reduce greenhouse gas emissions and support Australia’s renewable energy ambitions while providing farmers with an alternative income source.

Australia Wheat Market Regional Insights

New South Wales Wheat Market Regional Insights

As per the Australia wheat market analysis, the wheat sector significantly contributes to the New South Wales economy by generating employment in farming, processing, and distribution. It also plays a vital role as an exporter, providing access to international markets. According to the ABS, New South Wales produced about 4 million tonnes of wheat in the 2022-23 season.

Queensland Wheat Market Trends

Queensland is expected to grow at a CAGR of 1% between 2024 and 2032. Queensland plays a vital role as a wheat exporter, granting access to international markets and generating considerable revenue. Its varied farming practices accommodate different wheat varieties tailored to local conditions. According to the Queensland Government, wheat production in the state reached around 1.5 million tonnes for the 2022-23 season.

Western Australia Wheat Market Dynamics

The wheat sector significantly supports Western Australia's economy by generating employment in farming, processing, and distribution, while also acting as a key exporter that opens international markets and generates substantial revenue. In the 2022–23 season, Western Australia was the largest wheat-producing state, with sales reaching 14.7 million tonnes.

Competitive Landscape

The Australia wheat market key players prioritise sustainable farming practices by sourcing grains from local farmers who emphasise environmentally friendly methods. They offer a wide variety of products, including wholegrain flour, speciality blends, and baking mixes, targeting both health-conscious consumers and the food industry. Dedicated to quality, these companies comply with rigorous organic certification standards, ensuring their products are free from synthetic chemicals. Their goal is to promote healthy eating while supporting local agriculture and bolstering food security in Australia.

Key Industry Players

Australian Seed & Grain - WA Moora: Established in Moora, Western Australia, focuses on high-quality seed production and grain handling. The company is dedicated to supporting local farmers through innovative practices and sustainable agriculture, ensuring a reliable supply of premium seeds and grains for various markets.

Wholegrain Milling Co.: Headquartered in New South Wales was founded in 1984. The company specialises in producing high-quality organic and conventional wholegrain products. Committed to sustainable practices, Wholegrain Milling sources locally, promoting health and nutrition while supporting Australian farmers and the broader community.

Manildra Flour Mills Pty. Ltd.: Founded in 1952, Manildra Flour Mills Pty. Ltd. is based in New South Wales. The company is a leading flour and food manufacturer, offering a wide range of flour products. With a focus on quality and innovation, Manildra supports Australian agriculture and delivers products for various food applications.

FPM Cereal Milling Systems Pty Ltd.: Established in 1995, is in New South Wales. The company designs and manufactures advanced milling equipment for the cereal industry. FPM is committed to enhancing productivity and efficiency in grain processing, serving both local and international markets with innovative solutions.

Other key players in the Australia wheat market report are Four Leaf Milling, Golden Grain Flour Mills, Bellata Gold farms and Sam Mills Pty Ltd. among others. 

Recent Development

September 2024

WheatWave unveiled a distinctive blend of heritage wheat flour, emphasising traditional varieties. This product line aims to inform consumers about the advantages of diverse grain sources while promoting sustainable farming practices.

May 2024

WheatWorks Australia launched a selection of speciality baking mixes tailored for home bakers. This product range showcases the versatility of Australian wheat and targets health-conscious consumers in search of nutritious alternatives.