Almost one in three people living in Australia was born overseas. For international consumer brands, that creates sizeable customer communities with connections to markets, products and consumption habits around the world.
At June 2025, 8.8 million people living in Australia were born overseas, representing 32 per cent of the population. India and England were the two largest overseas-born populations, both at around 971,000 people. China followed at around 732,000 and New Zealand at around 638,000, with substantial communities also born in the Philippines, Vietnam, South Africa and Nepal.
The composition of that population is also changing. Between 2015 and 2025, Australia’s India-born population more than doubled, from about 449,000 to 971,000. The Philippines-born population grew from around 241,000 to 413,000, while the Nepal-born population increased from around 50,000 to 214,000.
For international consumer brands, these communities can provide identifiable customer groups, concentrated launch locations and a clearer basis for deciding which products to test first. The commercial opportunity still depends on customer behaviour, pricing and economics, but Australia’s demographic profile can make the initial search for demand more precise.
A national average can hide the customers you are looking for
Country of birth is only one measure of Australia’s consumer diversity. Language provides another.
At the 2021 Census, 24.8 per cent of Australian households used a language other than English at home. Mandarin was the most commonly reported language after English, followed by Arabic, Vietnamese, Cantonese and Punjabi.
For some international brands, these communities include consumers who already understand a product category, ingredient or format. A shopper may recognise a food product they grew up with, understand how a beauty product is used, or be familiar with a brand or category established in another market.
That familiarity can reduce the amount of education required during a launch and help a company identify products that already have a potential customer base in Australia.
The demographic label alone is not enough. Consumers from the same cultural background can differ considerably by age, income, household structure, migration history and shopping behaviour. A recent arrival may have different preferences from someone whose family has lived in Australia for several generations.
Demographic data therefore works best as a way to focus customer research. The company still needs to establish what people buy, how often they buy it, what alternatives they consider and what they are prepared to pay.
Geography can make an Australian launch more focused
Australia’s multicultural communities are unevenly distributed across its major cities.
The 2021 Census shows substantial differences in country-of-birth and language profiles across areas such as Auburn, Parramatta and Strathfield–Burwood–Ashfield in Sydney. Similar patterns appear in parts of Melbourne, Brisbane and Perth.
For a brand with an identifiable customer base, that concentration can shape an entry strategy.
Instead of launching nationally from the outset, a company may be able to focus distribution, marketing and customer research in locations where relevant consumers are more concentrated. This can produce clearer evidence on product response, pricing and repeat purchase before the business commits to wider distribution.
Geography can also affect retailer selection. Independent grocers, specialist retailers and stores serving particular communities may provide an effective starting point for some products. Other brands may find that their potential customer base is already large enough to support distribution through mainstream retailers.
The right route depends on where customers shop as much as where they live.
Filipino grocery products show how community demand can support wider distribution
By September 2021, Woolworths had expanded its Filipino product range to 262 stores across Australia. Products included sauces, mixes, vinegars, noodles, snacks and canned foods, with some stores carrying a broad range and others beginning with a smaller selection of bestsellers.
Importer DHN Trading also reported that the increased presence of Filipino products in mainstream supermarkets generated greater awareness and increased offtake through Filipino and Asian grocery stores.
The experience illustrates how an established customer community can provide a foundation for distribution while greater availability introduces products to consumers outside the original audience.
That pattern will not apply equally across categories. Brand recognition, price, product familiarity and competitive alternatives all influence whether demand can extend beyond a core customer group. For an international company, however, an existing community can provide a practical place to test that potential.
Start with the products that have the clearest local proposition
International consumer brands often operate much broader product ranges in their home markets than they need during an initial Australian launch.
Customer research can help identify the products with the strongest local proposition. That may mean prioritising familiar flavours, formats or use cases, or selecting products that address a need already visible in the Australian market.
A focused range also makes the launch easier to manage. It reduces inventory complexity, limits the number of products requiring compliance work and gives retailers and customers a clearer proposition.
Early sales then become evidence for the next decision. Companies can examine repeat purchase, price acceptance, product mix and whether demand extends beyond the initial customer segment.
A profitable specialist position may be an attractive outcome in its own right. Where demand broadens, the evidence can support discussions with larger retailers, distributors or other channel partners.
Digital channels can help test demand
Australia’s established e-commerce market gives some brands another way to assess customer response before making a larger commitment.Australians spent A$82.6 billion online in 2025, up 14 per cent year on year, according to Australia Post. Online spending represented 24 per cent of total retail expenditure.
Direct-to-consumer sales, marketplaces, specialist online retailers and targeted digital campaigns can help brands test propositions with defined customer groups. Digital data can also provide early information on acquisition costs, repeat purchase, geographic demand and product preferences.
The economics still need to work. Fulfilment costs, average order values, returns and customer acquisition costs can quickly undermine a direct-to-consumer model. Physical retail also remains important for categories where trial, visibility or shopping habits favour stores.
Channel selection should follow the customer and the commercial model.
Australian localisation remains part of the equation
Existing familiarity with a product does not remove the need to adapt to Australian market conditions.
Competitors influence pricing and positioning. Retailers and distributors have margin expectations. Companies may need to change pack sizes, product formats, claims or marketing messages. Freight, warehousing and distribution costs can also change the final price considerably.
Regulation needs to be incorporated early. Food imported for sale in Australia must meet Australian food standards, biosecurity import conditions and relevant labelling requirements. Other consumer categories face their own rules covering areas such as product safety, ingredients, claims, packaging and advertising.
A customer may want the product, but sustainable market entry still requires workable margins and a compliant route to market.
Use Australia’s diversity as a commercial filter
Australia’s multicultural population can help international brands identify where to look for early demand.Country of birth and language data can indicate potentially relevant customer groups. Geography can show where those communities are concentrated. Customer research can then establish which products resonate, what customers will pay and where they prefer to buy.
For some businesses, that creates an opportunity to enter Australia through a focused customer segment and expand as evidence develops. The Filipino grocery example shows how community demand can support an initial market while broader distribution exposes products to new consumers.
The commercial decision still comes back to demand, pricing, distribution, compliance and unit economics. Australia’s demographic diversity gives companies a stronger basis for investigating those questions before committing significant capital.
If your company is considering entering Australia, Dearin & Associates helps international businesses assess market demand, understand Australian consumers, evaluate routes to market and develop practical strategies for launching and growing in Australia.
If you're considering Australia as part of your international expansion, book an Australia Opportunity Scan, a 15-minute conversation to pressure-test the opportunity and your next move.
