AFGC reviews progress on food and grocery manufacturing targets

Australia’s food and grocery manufacturing sector requires investment in order to reach its growth goals, and ensure a thriving future for Australia’s largest manufacturing sector.

That’s one of the conclusions reached in the Australian Food and Grocery Council’s (AFGC) latest report, ‘Towards 2030: A food and grocery snapshot’, an assessment of the food and grocery manufacturing sector following the ‘Sustaining Australia: Food and Grocery Manufacturing 2030’ report released in 2020.

The report reflects on the achievements and challenges experienced between 2020 and 2025, a period of major global and domestic disruption. Despite COVID-19, geopolitical tensions, inflationary pressures and the transition to new energy and regulatory settings, the sector has continued to supply Australian households and support export markets, demonstrating exceptional resilience. The AFGC also acknowledges the ongoing contribution of retailers and wholesalers in supporting the sector’s ambitions.

AFGC Chair Bernie Brookes said the snapshot provides a clear view of where the sector stands as it looks ahead to the remainder of the decade.

“This report shows how important food and grocery manufacturing is to everyday life in Australia. Despite extraordinary challenges, the sector has kept shelves stocked and supported regional jobs. Looking ahead to 2030, strong policy and investment settings will be essential to secure long-term growth and competitiveness.”

AFGC CEO Colm Maguire said the snapshot reaffirms the vital role the sector plays and highlights where joint action is needed.

“As the peak body bringing Australia’s FMCG industry together to champion growth, Towards 2030 takes stock of how the sector has navigated a challenging period and provides a practical lens on where focus is now needed as priorities are set for the years ahead.”

The snapshot outlines key developments since 2020 and highlights structural challenges shaping the operating environment, including rising costs, sustained margin pressures, and persistent investment gaps that constrain long-term growth.

“This is a forward-looking contribution to the policy conversation,” Maguire said. “For Australia to unlock the full potential of food and grocery manufacturing, we need to sharpen our focus on investment, productivity and competitiveness. The foundations are strong, but continued collaboration is essential if we are to build a sector that is globally competitive, future-ready, and able to seize emerging opportunities.”

Maguire said Towards 2030 will guide AFGC’s engagement with government and industry to ensure policies support domestic manufacturing, regional jobs and a resilient, competitive food and grocery sector.

“The next phase of the decade is critical,” he said. “Building on the resilience demonstrated between 2020 and 2025 will be essential to ensuring the sector continues to thrive and remain a cornerstone of Australia’s prosperity.”

The full report can be downloaded here. 

Image credit: iStock.com/fatido