A new report by alternative protein think tank Food Frontier has outlined opportunities and challenges facing the plant protein ingredient manufacturing industry in Australia.
The authors find that Australia has strong crop production and an existing global footprint in wheat protein ingredients, but is missing out on high‑value ingredient manufacturing of protein‑rich crops because it primarily exports raw commodities. Consequently, a unified, national strategy is needed to make the country a leader in diverse plant protein ingredients.
According to the report, shifting dietary patterns are fuelling the adoption of plant‑based food and beverage products, while consumer trends are increasing the demand for plant proteins. Soy, wheat, and pea are the key drivers, but diversification is emerging from faba bean, lupin, and hemp ingredients.
Manufacturers face structural barriers
Australia currently produces around 59 million tonnes of protein-rich cereals, pulses, and oilseeds annually; it is the global leader in lupin production, and a major producer of wheat and canola. The country is also said to have high growth potential for pulses such as faba bean, lentil, and chickpea.
However, the report suggests Australia should shift away from bulk exports and translate this advantage into a nationally scaled value‑addition opportunity. It claims that this would enable greater domestic economic return, support regional resilience, and meet growing global demand for quality ingredients.
Australia’s plant protein ingredient manufacturing sector now reportedly includes six manufacturers using wet or dry fractionation across cereals, pulses, and oilseeds. These are Manildra Group, Essantis, Wide Open Agriculture, Australian Plant Proteins, Hemp Harvests, and Integra Foods. However, the companies face structural barriers such as:
- Building awareness, driving demand, and catalysing product development.
- Scaling up to drive cost competitiveness.
- Securing investment.
- Mitigating upstream supply variabilities.
- Navigating regulatory hurdles (for hemp producers).
Priorities for national action
Food Frontier says deliberate coordination is required to prevent Australia from losing competitive ground to countries with clearer strategies, larger investment pools, and integrated value chain development. The report describes a pathway with five priorities for national action:
- Establish a national taskforce to set a national strategy, coordinate efforts, and align cross‑jurisdictional policy, infrastructure, and investment.
- Invest in shared R&D platforms for crop breeding, processing optimisation, ingredient functionality and product application, and byproduct valorisation.
- Drive demand and reduce adoption barriers through targeted marketing, reformulation incentives, traceability systems, and data on ingredient usage and trade flows.
- Scale manufacturing via strategic investment in regional hubs, shared infrastructure, and capital co‑investment frameworks.
- Build workforce and regional supply chains through targeted training, grower engagement, and regional ecosystem development.
“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,” says the report. “The foundations are in place, and the case is clear — what is required now is leadership, coordination, and national action.”
