Major updates and key developments
The Australian food and beverage sector has seen a number of significant legal and regulatory developments over the past 12 months. Many of these developments are already affecting the sector and will continue to do so in 2024 and beyond. In this report, we explore:
- Key regulatory developments – including regarding GMOs, sugar-related claims and the Health Star Rating System
- What Australia's proposed climate-related financial disclosure regime means for the food and beverage sector
- Recent competition and consumer trends – including scrutiny of sustainability claims and unfair contract terms
- An update on class action and product recall risk for the food and beverage sector
Key takeaways
Key regulatory updates for the food and beverage sector as the regulation of sugar-related claims, genetically modified foods, advertising of 'occasional foods', geographical indication protection and the Health Star Rating system are under the spotlight.
The proposed climate-related financial disclosure regime will implement standardised and internationally aligned reporting requirements via domestic standards and associated legislative amendments. Food and beverage-related companies in the ASX100 are likely to be captured in the first reporting period during 2024-25.
Competition and consumer trends include a focus on sustainability as the food and beverage sector has been identified as one with the greatest proportion of concerning environmental claims.
Class actions are elevated, with a focus on consumer and shareholder claims. Product recalls are also on a slight upward trend, with food safety and labelling factors being highlighted.