Australia food and grocery manufacturing sector sees growth

Australia’s food and grocery manufacturing sector experienced significant growth in 2024-25, according to the Australian Food and Grocery Council (AFGC) State of the Industry report. Industry turnover rose to $182.6 billion, while exports increased by 17.4 per cent to $52.6 billion. Notably, the United States has overtaken China as the sector’s largest export market, with exports to the US reaching $11.32 billion.

The sector now employs over 301,000 people, accounting for approximately one-third of all manufacturing jobs in Australia. More than a third of this workforce is located in regional communities. Capital investment also saw a 16 per cent increase, rising to $4.5 billion, with the majority directed toward plant, equipment, and machinery.

Despite these gains, the AFGC warned of mounting challenges. Rising operating costs, margin pressures, and higher energy and commodity prices pose risks to long-term investment capacity. Additionally, supply chain disruptions in the Middle East continue to impact the sector. The AFGC is calling for government support through investment incentives, more reliable energy, and streamlined regulation to reach a target turnover of $250 billion by 2030.