Healthier innovations and sustainable packaging efforts key drivers of Aussie beverage sector, say experts
Australians are more health- and eco-conscious than before, prompting shifts in drinking behaviour towards more functional products.
Worrying health trends and environmental concerns are nudging Australians towards nutrition-focused food and drink, creating opportunities for brands to develop healthier options with sustainable packaging.
Experts observed that craft beverages and product revamps are tapping into an appetite for novelty and nostalgia among Australians, pushing them away from conventional sugary drinks.
This development aligns with a 2024 report by Food Standards Australia New Zealand (FSANZ), which stated that two-thirds of Australians value nutrition above other attributes in their food choices excluding taste and price. It also revealed that 63% say they check the sugar content when purchasing a product for the first time.
Australia supermarket inquiry: Co-op sector calls for government support to overcome ‘oligopoly’
The Australian co-operative (co-op) retail sector wants better support for small stores in the country, after the supermarket sector was branded an ‘oligopoly’.
Australia has been conducting an in-depth study into supermarket sector since the beginning of 2024, helmed by the Australian Competitor and Consumer Commission (ACCC).
After over a year of inquiries, the commission recently published its final report in March 2025, concluding that the current structure of the local retail sector is essentially an oligopoly led by Woolworths and Coles.
This is very similar to the situation faced by neighbouring market New Zealand previously, which has seen shifts towards a reform of sorts in recent years led by the New Zealand Food and Grocery Council (NZFGC).
Kava drinks set to shake up NOLO market as next-gen alcohol alternative - The Calmer Co
Australia-based The Calmer Co believes that kava-based drinks are well-positioned as part of the second generation of low-to-no alcohol (NOLO) beverages, providing relaxation functional benefits in addition to being an alternative to booze.
Kava is a plant from the pepper family, which roots contain high concentrations of kavalactone active compounds, giving these multiple properties including calming and relaxation.
Although this is consumed as a traditional drink in the Fiji islands, from a food regulatory and safety perspective kava has faced hurdles in multiple markets as high doses can be intoxicating in the same way that alcohol might be intoxicating.
“The regulatory recognition has had very strong bearing on our marketing strategies in Asia although we see great potential in this market,” The Calmer Co CEO Anthony Noble said.
How digital ad monitoring can help curb unhealthy food marketing – Aussie study
Australian researchers have demonstrated how a “data donation infrastructure” can track digital food marketing, revealing how online advertising can be monitored and held accountable.
Their findings could shape policies to manage potentially harmful ad themes.
The nature of online media makes consumers particularly susceptible to targeted advertising of unhealthy foods, say researchers. They argue that stronger interventions – such as enhanced ad monitoring – can help mitigate these negative effects.
“Our analysis shows that it is, in principle, feasible to use methods and infrastructures such as those developed by the Australian Ad Observatory to observe the ads shown to individuals on social media platforms, and make advertisers and the platforms themselves accountable for unlawful or harmful marketing practices,” wrote researchers in Health Promotion International.
‘Wine is fashion business’: Staying ahead of the curve is crucial in saturated Asia market – Taylors
Australia’s Taylors is applying a forward-thinking approach in its packaging and latest launches to capture Asian market share.
Since winemaking is a long process, brands need to anticipate what consumers want way ahead of time and adapt accordingly.
“As my father said many years ago, we’re not really in the wine business; we’re in the fashion business. So, we have to be very adaptive to all the trends that are happening,” said Mitchell Taylor, third generation winemaker and managing director at Taylors.
This mindset is crucial for the wine industry, which is seeing an oversupply, said Taylor.
FSANZ proposes new rules for caffeine in foods to address overconsumption risk
Food Standards Australia New Zealand (FSANZ) proposed new caffeine regulations for retail foods to mitigate overconsumption risks among vulnerable groups earlier this year.
There were two new prohibitions proposed – food for retail sale must not be caffeine, and all food for retail sale must not contain caffeine as an ingredient or a component.
These prohibitions will not apply to the following, which are currently “expressly permitted by the Code” to be sold via retail – formulated caffeinated beverages, cola-type drinks and, if approved, formulated supplementary sports foods.
FSANZ also proposed that formulated supplementary sports foods may contain caffeine up to 200mg in a one-day quantity, with consumption directions specified on the product label.
Fermented fungi firm targets taste gap in plant-based, hybrid proteins
Aussie-based Nourish Ingredients focuses on global rollout for plant-based and hybrid protein categories after FEMA GRAS approval.
The firm’s proprietary ingredient Tastilux is made via precision fermentation of fungal strains that contain long-chain omega-6 phospholids – the same fat that gives meats their distinctive flavour and mouthfeel.
Tastilux recently gained FEMA GRAS status – indicating that it is Generally Recognized As Safe (GRAS) by the US Flavor and Extract Manufacturers Association (FEMA), an independent industry body where an expert panel of scientists and toxicologists evaluates the safety of flavour ingredients.
For founder and CEO of Nourish Ingredients James Petrie, this affirms that Tastilux is a safe, effective ingredient that addresses taste and texture gaps for alternative proteins.
How an Aussie supergrain can boost gut health and elderly nutrition
Award-winning gut-friendly supergrain BARLEYMAX eyes growth in elderly nutrition, infant formula, and high-fibre bakery products.
Developed by Australia’s Commonwealth Scientific and Industrial Research Organisation (CSIRO), BARLEYMAX is described as a “super barley grain” rich in prebiotics and protein.
It won Ingredient of the Year for Microbiome Modulation at the NutraIngredients-Asia Awards in July, and is already used in various formats such as whole grain, flour, flakes, and stone-cut grain.
Beyond its nutritional benefits, BARLEYMAX enhances flavour and texture, and is featured in Coles’ Happy Gut bread range.
Its unique nutritional profile supports healthier gut microbiomes in both young and elderly populations.
Organic sector questions ‘unclear’ GM food rules but ANZ push ahead
Food Standards Australia New Zealand (FSANZ) has moved forward with new GM food definitions that some say weaken the distinction between ‘natural’ and modified foods.
FSANZ announced that only products with “novel DNA” will be considered GM foods, regardless of the techniques used to produce them.
This came after two rounds of public consultations, which included a strongly worded response from the Organic Consumers Association of Australia (OCAA) accusing FSANZ of abandoning consumer rights.
The OCAA warned the new rules could confuse consumers, as some foods made using NBTs would no longer require pre-market approval or GM labelling if no novel DNA is introduced.
OCAA and other stakeholders also raised concerns about food safety, citing risks such as allergenicity, reduced nutrition, and antibiotic resistance.
Similarly, Australian Organic Limited (AOL) warned that the new definitions could undermine consumer trust and harm export markets.
Cheese-whiz: Australia’s Brownes Dairy to expand 140-year legacy in Asia
From cheese lollipops for kids to flavoured cheddars for adults, Australia’s Brownes Dairy is hoping innovation will drive sales success in Asia.
Brownes Dairy lays claim to the title of Australia’s oldest dairy, established in 1886 and soon to celebrate its 140-year anniversary.
It is a household name for fresh milk in Western Australia, and also sells its dairy products including yoghurts, creams, flavoured milks and cheeses to the rest of the country via supermarkets Coles, Woolworths and IGA.
Brownes Dairy Marketing GM Nicole Ohm told FoodNavigator-Asia: “One of the categories we believe has the greatest export potential though is cheeses, and we have specialised products targeted at both adults and children.
