Australian beverage sector has a record summer

Australian food and beverage makers closed 2025 with a welcome summer surge in revenue, according to the latest Manufacturing Health Index from inventory management specialist Unleashed.

While the beverage sector has been battered by global headwinds and domestic cost-of-living pressures, the holiday season brought a welcome return to form.

Beverage manufacturers’ average revenue jumped to $627K, up almost $200K from the last quarter and the strongest result posted in any quarter since Unleashed records began.

The climb in revenue was matched by a healthy 4pp bump in gross profit margin to 35.9% from the previous quarter and well ahead of the same quarter last year (27.8%).

Average revenue for food manufacturers rose to $709,831, only a slight dip QoQ from $733K in Q3 and a marked improvement from the same quarter last year of $546,229.

The figures appear in Unleashed’s latest manufacturing report, based on data from more than 500 Australian firms across manufacturing categories such as food and beverage, clothing and fashion, and construction.

“The holiday period provided a vital boost for lifestyle-focused manufacturers,” said Unleashed Head of Product Jarrod Adam. “It’s a clear indicator that despite broader cost-of-living pressures, there is still resilient demand for high-quality, Australian-made consumer goods.”

Key figures at a glance:

• Record average revenue for beverage manufacturers of $627,422 in Q4 2025.
• The average Food Manufacturer had $709,831 in revenue in Q4, up from $546,229 in same quarter last year.
• Profit margins remained resilient at 35.9% for beverage manufacturers.
• A sharper dip for food manufacturers, down to 23% from 30.8 QoQ.
• Stock on hand (SOH) remained steady for both sectors.
• Average purchase order values jumped to $470K from $468K QoQ.
• Lead times remained low at 17 days, well below 2024 averages.

Strong performance across sectors

Overall, Australian manufacturers’ firms maintained a respectable 5.1% annualised sales growth, even as they moved towards tighter supply cycles.

The average manufacturer saw sales revenue settle at $619,184 in the final quarter. While this represented a small 1.0% dip from Q3, it confirmed that the significant gains made earlier in the year have held firm.

This stability was matched by margin resilience as Australian profit margins remained robust at 38.47% despite inflationary pressures.

Unlike their counterparts in the UK and New Zealand, who engaged in aggressive restocking, Australian manufacturers continued to refine their stock profiles.

Stock on Hand (SOH) dropped to an average of AU$233,763, yet this lean approach was paired with a significant 22% lift in purchasing.

“Australian businesses are moving quickly,” explained Jarrod Adam, Unleashed Software’s Head of Product.

“The disconnect we’re seeing between lower stock levels and higher purchase values suggests a move toward just-in-time replenishment. Firms aren’t sitting on mountains of cash tied up in inventory, they are buying precisely what they need to meet immediate demand.”

Outlook for 2026, according to Unleashed

Interest rates will continue to play a central role in the manufacturing sector in the first half of 2026. The RBA raised the cash rate to 3.85% in February 2026, the first increase after a period of holding or cutting rates in 2025.

As of early March 2026, Governor Michele Bullock has stated that another rate hike is a ‘live’ chance for the 16–17 March meeting.

The RBA now expects inflation to peak in mid-2026 (potentially reaching 4.2% headline) before finally moderating back towards the 2.5% midpoint by mid-2028.

However, the outbreak of conflict in the Middle East complicates forecasts. Energy price increases may raise material and supply chain costs, and erode margins.

The trend towards stable and low lead times could also be affected as shipping firms respond.

Renewed pressure on energy and supply costs are likely to accelerate an existing imperative for firms to evolve beyond surviving high costs towards scaling efficient operations.

Manufacturers are now prioritising the mitigation of persistent labour shortages and increased input costs through the adoption of automation to streamline workflows.

Central to this new growth phase is the use of real-time data to navigate increasingly tight purchasing cycles.

Adam said: “The challenge for 2026 is productivity. Manufacturers must leverage technology to manage these tighter cycles and ensure they have the visibility required to avoid stockouts during demand spikes, without sacrificing the lean efficiency they’ve worked so hard to achieve.”

As always, Unleashed notes, the smallest players will be the most affected by global headwinds but are able to pivot faster to any change.

Image credit: iStock.com/SpiffyJ