Over the last decade, the capital value of the abalone quota units and the beach price per kilo for wild-caught Abalone
has dropped by about 50% (after allowing for inflation). The main reason for this decline in industry value is more competition - particularly from farmed abalone, although currency fluctuations have also played a role.

The most important market for Australian abalone products in terms of both volume and value is currently mainland China. Demand is subject to normal economic forces, but appears to be fairly constant. However, in a market that is growing in line with the Chinese economy, Australian abalone returns and capital growth have been steadily declining since 2000.

No specific activities aimed at positioning Australian Wild Caught Abalone have been undertaken with customer (restaurant) or consumers. The industry has principally operated as an export sales function, building strong relationships with Chinese importers, but further down the supply chain, there has been no involvement by Australian stakeholders.

It is the view of the Abalone Council of Australia that a serious commitment to trialing a product differentiation strategy and an associated marketing effort in China is required to ascertain whether it is possible to prevent further economic damage and start improving the value of unit holders’ investments.

Research to date suggests that the best opportunity is to establish a program that increases demand for Australian Wild Caught abalone in Chinese restaurants specifically targeting the emerging mass affluent consumers.