Biotechnology in Australia 2022
Industry Report
Biotechnology in Australia
Biotechnology involves applying science and technology to living organisms, and parts, products and models, to alter living or non-living materials to produce knowledge and biotechnology products and services. The industry includes biotechnology research and development, licensing, product manufacturing and product wholesaling. Companies that focus on medical devices are not included in the industry.
Industry revenue has grown at an annualised 2.4% over the five years through 2021-22, to $8.9 billion
EXECUTIVE SUMMARY
Biotechnology is becoming an increasingly important part of product development in a variety of sectors, with businesses using biotech applications to address many social and economic issues such as human health, food security and alternative fuels. Several companies have reached commercial readiness, with robust product pipelines and the support of international partners improving their attractiveness to investors. While human therapeutics companies continue to dominate the industry, agricultural technology and food technology companies are gaining momentum.
New funding sources have driven industry growth over the past five years. However, ongoing uncertainty due to changing government policies has dampened the industry's performance, particularly regarding changes to Australia's R&D tax incentive (RDTI) regime. The COVID-19 pandemic has also influenced the industry's operating environment with several industry operators at the frontline regarding COVID-19 research, prevention and treatment.
OUTLOOK 2022-2027
The Biotechnology industry is forecast to continue growing over the next five years, driven by increased demand for, and greater acceptance of, biotech products. It is anticipated to derive revenue from a wider range of sources and it is expected to increase at an annualised 3.0% over the five years through 2026-27, to $10.3 billion.
Employment is projected to slowly increase, although a potential shortage of STEM graduates may continue to limit this growth.
Enterprise numbers are anticipated to grow modestly, however, pharmaceutical companies are anticipated to continue acquiring biotech start-ups to gain access to product pipelines and innovative technology platforms and there for consolidation trends will continue.
Source: IBISWorld | Biotechnology in Australia, Feb 2022
