Food and grocery sector records impressive growth

The Australian Food and Grocery Council’s (AFGC) recent State of the Industry 2023–24 report has detailed impressive growth in the nation’s food and grocery manufacturing sector, reinforcing its position as Australia’s largest manufacturing industry and a cornerstone of regional employment.

Based on ABS data, the sector recorded a 5.3% increase in turnover to $173 billion and a 4.4% rise in employment. It now supports nearly 300,000 jobs, over a third of which are in regional Australia. Exports also rose by 5.2%, highlighting the sector’s growing global reach.

“This is a sector with enormous potential,” said AFGC CEO Colm Maguire. “With the right policy settings and strategic support, food and grocery manufacturing will continue to boost Australia’s economy — driving regional jobs, underpinning Australia as a proud manufacturing nation, and securing our food and grocery supply in an increasingly complex global environment.”

While the sector’s growth is encouraging, the report also details areas that could be improved, including a decline in capital investment and ongoing cost pressures. The AFGC is advocating for targeted collaboration with government to support further growth and innovation.

Key highlights from the report are as follows:

• Turnover rose 5.3% to $173 billion, maintaining the sector’s leadership in Australian manufacturing.
• Employment grew 4.4% to 294,212, with 36% of jobs located in regional communities.
• Exports increased 5.2%, while imports fell 3.3%, strengthening Australia’s trade balance.
• The United States overtook China as Australia’s top export market.
• Investment declined 11% to $3.8 billion, signalling an opportunity for renewed focus on capital growth.

With the federal government advancing its Future Made in Australia policy, food and grocery manufacturing is primed to play a central role. The AFGC has outlined seven key pillars to boost productivity across the industry, including cutting red tape, building resilient supply chains, and ensuring affordable, reliable energy. For more details, see the AFGC’s Productivity Playbook.

The full State of the Industry report is available here.

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