2024 has been a dynamic year for international trade, with shifts in global economic conditions and evolving consumer demands. As we move into 2025, Australian businesses that stay ahead of the curve and adapt to emerging trends will be well-positioned for growth and success in the international market.
The Australian export landscape is brimming with business opportunities to expand their reach and tap into new markets. Recent data reveals a positive trend in Australia's export sector, with a 5.6% increase in total exports in 2023. This growth highlights the resilience and adaptability of Australian businesses in navigating the complexities of international trade.
In this article, we summarize the key export findings and current market trends to help Australian companies plan their growth trajectory in the year to come.
Trend 1. Sustained business/exporter confidence
Exporter confidence is a key indicator of the success and strength of an economy. It manifests in increased investment, higher export rates, and robust economic growth. High levels of exporter confidence demonstrate that businesses can make profits through international trade and that the economy is strong enough to ensure those profits. As a result, businesses are more likely to invest in themselves and expand their operations by planning for a bigger workforce, stimulating growth, and boosting local economies.
Recent data and trends support this positive outlook. According to the CEIC, Australia's Business Confidence has stabilized to a relatively neutral sentiment since July 2023 compared to its more turbulent fluctuation between 2020 and 2023. This suggests that despite ongoing global economic challenges, Australian businesses remain optimistic about their prospects for growth and expansion in the international market.
Trend 2: More ways to engage in e-commerce
The e-commerce landscape continues to evolve rapidly, with new technologies and consumer expectations shaping how businesses operate online. In 2025, we can expect to see an even greater emphasis on immersive shopping experiences and lightning-fast fulfilment.
Consumers are increasingly turning to more interactive and engaging online shopping methods. Shopify predicts that social commerce trends like live shopping are gaining popularity, allowing businesses to connect with customers on a more personal level. Platforms like Instagram and TikTok are becoming powerful sales channels, allowing businesses to engage with customers directly and leverage social commerce trends. By incorporating shoppable posts, collaborating with influencers, and encouraging user-generated content, businesses can tap into the growing potential of social commerce.
To enhance the online shopping experience, e-commerce businesses can also explore incorporating 3D images and augmented reality (AR) features, enabling customers to "try before they buy" and visualize products in their environment.
Furthermore, consumers now expect faster and more efficient deliveries. E-commerce businesses face pressure to optimize their supply chains and offer expedited shipping options, including same-day or next-day delivery. According to SOTI, 44% of Australian consumers say they would abandon a purchase if delivery took more than two days, while 57% expect the option to pick up an item ordered online the same day.
Enhanced tracking capabilities and transparent communication throughout the delivery process are also crucial for meeting the demands of today's online shoppers accustomed to rapid service and real-time updates.
Trend 3: Opportunities for market expansion into Asia-pacific
The Asia-Pacific region presents a wealth of opportunities for Australian businesses seeking to expand their export operations. With a positive economic outlook and growing consumer markets, the region is ripe with potential for businesses to tap into new customer bases and diversify their revenue streams.
According to the IMF's Economic Outlook Report, most countries in the Asia-Pacific region experienced neutral to positive GDP growth as of April 2024. Furthermore, the Asia-Pacific region has witnessed a 10% increase in total exports, indicating a strong demand for goods and services worldwide. This presents a prime opportunity for Australian businesses to capitalize on this growing demand and establish a strong presence in the region.
The Regional Comprehensive Economic Partnership (RCEP), a free trade agreement among 15 Asia-Pacific nations, further enhances export opportunities for Australian businesses. RCEP eliminates tariffs and reduces trade barriers, facilitating smoother and more cost-effective trade within the region.
To support Australian businesses in their international export endeavours, the Australian Trade and Investment Commission has implemented several initiatives:
- Landing Pads and Dealroom Program: Provides temporary workspace and support services in key Asian markets to help businesses establish a presence and connect with potential partners and customers.
- Expanded Austra-India Business Exchange (AIBX) Program: Facilitates collaboration and partnerships between Australian and Indian businesses, fostering trade and investment between the two countries.
- Improving the Go Global Toolkit: Offers online resources and tools to guide businesses through the export process, including market research, regulatory information, and export documentation.
- Simplified Trade System (STS) Unit: Works to streamline customs procedures and reduce trade barriers, making it easier for Australian businesses to export their goods.
Trend 4: Renewed Focus on Supply Chain Resilience
The COVID-19 pandemic, geopolitical events happening in the West, and the severe typhoons and cyclones happening in the APAC regions1 have exposed the vulnerabilities of global supply chains—continued disruptions, delays, and increased costs for businesses worldwide.
For Australian businesses engaged in international trade, focusing on supply chain resilience is now more critical than ever. This involves adopting strategies that enhance flexibility, responsiveness, and the ability to withstand unexpected disruptions.
Here are some key approaches to building a more resilient supply chain:
- Diversifying Suppliers: Relying on a single supplier can create vulnerabilities. Diversifying your supplier base across different regions and countries can mitigate risks associated with disruptions in specific locations.
- Exploring Nearshoring Options: Consider sourcing materials or manufacturing products closer to home. Nearshoring can reduce reliance on long-distance supply chains and minimize the impact of geopolitical or logistical disruptions.
- Leveraging Technology: Implementing supply chain management software and real-time tracking systems can help to proactively identify potential bottlenecks or disruptions and facilitate faster response times.
- Building Strong Relationships with Logistics Partners: Collaborating with reliable logistics providers like DHL Express can help you navigate supply chain challenges and ensure efficient and secure transportation of your goods.
Trend 5: The importance of free trade agreements (FTAs)
Free trade agreements (FTAs) are vital for Australia's international trading partners, as they create a more transparent, stable and predictable commercial environment for all. They also help open up new markets for Australian goods and services, providing neighbouring countries with an opportunity to access products from countries with which they have active FTAs.
Currently, the most utilized FTA is the China-Australia Free Trade Agreement (ChAFTA). Trending a positive trade balance of US$4.75 billion as of September 2024, China stands as one of Australia's largest export destinations. ChAFTA has been instrumental in facilitating exports to China by eliminating tariffs on a wide range of products, making Australian goods more competitive in the Chinese market.
Other highly utilized FTAs include the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) and the Japan-Australia Economic Partnership Agreement (JAEPA). AANZFTA promotes regional economic integration and facilitates trade with Southeast Asian nations, a key market for Australian exporters. Exporting to Japan, on the other hand, leverages JAEPA to strengthen trade ties with Japan, a major importer of Australian agricultural products such as beef, dairy, and wine.
Expand your business internationally with DHL Express
Trends are important for business growth as they provide insights into customer behaviour and preferences, allowing businesses to tailor their growth plans accordingly. By analysing export trends in 2024, you can capitalize on emerging opportunities within the marketplace and create marketing campaigns, product development, pricing strategies, and much more.
Ultimately, being competitive in the positive export market helps businesses become more successful and profitable. It also helps foster global economic growth and contributes to a more connected world. With the right resources, research, and strategies, businesses can maximise their export opportunities and stay competitive in this dynamic market.
Even with a minimum investment, exporting overseas can be a great way to expand a local business. DHL Express allows businesses to take advantage of their global shipping network and focus on what matters most – delivering quality products that meet their customer’s needs. On top of effective business advice, the international logistics service provider offers fast shipping times for customers based in Australia, shipping to countries such as Singapore, with transit times as short as one to two business days.
Exporting goods and services to overseas markets can open up a world of opportunity for businesses. By positioning your business in an international market, you can grow your customer base, expand your profits and even create employment opportunities both in the local area and abroad.
Apply for an international business shipping account and start exporting.
