Record growth for food and grocery manufacturing sector, AFGC reports

The Australian Food and Grocery Council’s State of Industry 2024–25 report shows turnover and employment reached record levels in 2024–25, underscoring the sector’s growing importance to the Australian economy.

“We account for one in three manufacturing jobs in Australia. That’s our industry supporting communities and livelihoods across the country, especially in regional areas where manufacturing is the lifeblood of local communities,” said AFGC CEO Colm Maguire.

“Food and grocery manufacturing is Australia’s largest manufacturing sector and one of the country’s most significant employers.”

The State of Industry report shows turnover reached $182.6 billion and capital investment rose 16% to $4.5 billion, while exports climbed 17.4% to $52.6 billion, outpacing import growth.

Click here to view larger image.

While the report points to a sector continuing to expand, continued pressure on margins and operating costs, evident through the events of 2026, could weaken the sector’s ability to invest and grow over the long term if left unaddressed. These pressures stem from supply chain disruptions in the Middle East and the rising costs of energy and commodities used to make the sector’s products.

The challenge now is turning today’s strong performance into long-term competitiveness. The industry is focused on reaching $250 billion in turnover by 2030 and is calling for investment incentives, affordable and reliable energy and smarter regulation to support growth.

“Australia has the capability, the workforce and the businesses to grow food and grocery manufacturing even further. The task now is ensuring we have the policy settings that allow that growth to happen here,” Maguire said.

Image credit: iStock.com/AleksandarGeorgiev