Horticulture on track to reach $20 billion by 2030

Even with challenging weather conditions and widespread floods providing hurdles for the sector it has continued to grow and increase in value.  

The standout performers for value were table grapes, almonds, head lettuce, and leafy salad vegetables.  
Reduced supply of head lettuce, tomatoes, onions, and beans from the floods was a major driver for their higher value.  

What’s driving value for horticulture?  

While the value of the vegetable sector was higher overall than fruit for the first time recorded, the export value increased for fruit, nuts, and green life but declined for vegetables. 

Challenges with trade, geopolitics, covid and freight meant that for some products exports reduced but fresh domestic market absorbed this -higher value quality product. 

With Australia's finite population, to grow horticulture exports will be a fundamental channel. Currently 11.5% of total horticulture is exported.  

Protected cropping systems are being introduced and are a significant part of the industry.  There are noted benefits in yield improvement. There is 16% of fruit and vegetable production in glasshouses and 13% in polyhouses/tunnels with the remaining 71% in conventional open-air production. 

Value of foodservice and retail continues to grow 

Retail value reached its highest record level at $9.34 billion, despite retail volume being 3.2% less than 2020/21. 

The food services sector has evolved through an extremely challenging few years and is now operating with tightened commercials, and higher prices. 

Consumers have hardwired in a lifestyle of eating out. Households spend 35-38% of their food budget on eating out according to FreshLogic. Given the challenging few years, the tightening of consumer budgets due to inflation, the strength in food service is very positive and a growing channel.  

The outlook is strong for horticulture with the industry on track to reach $20 billion by 2030, if not before.