Expanding your local Australian cereal business across borders

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Due to high demand for healthier food worldwide, the prospect of expanding Australian cereal businesses across borders into the international market has become an attractive proposition for local cereal businesses in Australia.

Fortune Business Insights reports that the global Fast-Moving Consumer Goods (FMCG) market is projected to experience relatively slow growth in terms of Compound Annual Growth Rates (CAGR) for the coming years. However, the international market for breakfast cereals, according to Statista, is expected to grow dramatically by 5.2% per annum from 2023 through 2027. This represents a great opportunity for Australian cereal and grain production businesses to enter new markets and capitalise on increasing demand for cereals abroad. This is especially so given the fact that the unique selling points (USPs) of most Australian cereals are already much aligned with growing consumer demands — in both mature and emerging markets — for healthier and organic foodstuffs. 

In other words, Australian cereal businesses can leverage the nation’s reputation for healthy food offerings, combined with the rising demand for healthier breakfast foods on a global scale, to successfully enter new markets and optimise business profits. By taking the right steps towards international expansion, Australian cereal businesses can open up an entirely new revenue stream as cereal exporters, and establish themselves as key players in the trade of world cereal production. 

How to expand your Australian cereal business overseas

Australian cereal businesses can more efficiently expand their trade overseas by pursuing the following strategic routes:

1. Tapping into the USPs of local Australian cereals

Local Australian cereals should showcase USPs such as their natural ingredients, organic purity, and health-oriented benefits — alongside their Australian origins — to attract international customers. By doing this, cereal businesses in Australia can better differentiate themselves from international competitors and take advantage of Australia’s renown for healthier foodstuffs and organic wholefoods. This will help create a strong basis for new market entry.

2. Marketing Australian cereals as a versatile snack 

To expand beyond the traditional market of breakfast eaters, Australian cereal businesses should look to actively rebrand and reframe their products as viable snacks for adults and children. This can be done via marketing campaigns that promote cereal as more than just breakfast food, as well as through product innovations such as adding additional content and flavours that appeal to a wider demographic

Uncle Tobys is one successful case study in this regard, having altered their cereal recipes to create muesli bars that sold greatly overseas. These muesli bars were marketed as convenience food, and have since become popular snack alternatives in countries such as America and Singapore. 

By appealing to global consumer eating habits and the growing common desire for a healthier diet, Australian cereal businesses can successfully differentiate their products from the competition while simultaneously carving out an entirely new market of consumers. 

3. Localising product packaging to meet unique preferences

Moreover, Australian cereal businesses should also consider investing in product packaging that is designed with international customers in mind. For instance, many markets abroad prefer easy-to-open packages that are both lightweight and have strong airtight seals. Others may necessitate specific label requirements such as ingredient listings or nutritional information — it is thus important for Australian cereal businesses to be aware of any local packaging regulations and requirements prior to entering a new market. Sustainable packaging is another aspect that Australian cereal businesses should keep in mind to stay afloat globally increasing consumer conscientiousness. 

4. Forming the right partnerships to better reach target consumers

To successfully expand overseas, Australian cereal businesses must consider targeting the right customers and creating partnerships with major industry players. Establishing relationships with international retailers is key to effectively marketing and selling cereals abroad. 

By building strong relationships with regional distributors and engaging in collaborative efforts — such as joint-promotional campaigns or product launches with local trading partners — Australian cereal businesses can establish themselves in foreign markets more effectively.  Online e-commerce marketplaces are also a viable option for Australian cereal businesses to get a headstart in their expansion efforts. 

5. Familiarising yourself with required export and import permits

Lastly, Australian cereal businesses must be familiar with the required export and import permits for cereal for each of the countries they plan to export to. For example, to export infant cereals to Singapore, businesses must perform a one-time submission of documentary proof that the cereals have been manufactured on premises regulated by competent authorities, alongside continual submissions of chemical test reports for each consignment. Similarly, for exports of cereal grains into Indonesia that are hulled, rolled, flaked, pearled, sliced, kibbled, or ground, an official Phytosanitary Certificate is necessary. Free Trade Agreements (FTAs) should also be taken into consideration when forming your export strategy.

Expand your Australian cereal business across borders with DHL Express

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