Australia’s food and grocery manufacturing sector recorded increases in turnover and employment in 2024-25. However, the Australian Food and Grocery Council (AFGC) said pressure on operating costs and margins could affect the sector’s ability to invest and grow over the long term.
According to AFGC’s State of the Industry 2024-25 report, industry turnover increased 5.5 per cent to $182.6 billion, while employment passed 301,000. The sector accounts for around one-third of Australia’s manufacturing jobs, with more than one-third of its workforce based in regional areas.
AFGC CEO Colm Maguire said the employment figures highlight the role of the sector in domestic manufacturing.
“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,” Maguire said at AFGC’s Apex 2026 conference.
Capital investment increased 16 per cent to $4.5 billion in 2024-25 after falling in the previous year. Most of the investment went to plant, equipment and machinery, rather than buildings and structures.
Exports increased 17.4 per cent to $52.6 billion, with the US overtaking China as the sector’s largest export market. Exports to the US reached $11.32 billion, compared with $9.95 billion to China.
Despite growth in turnover, employment, investment and exports, AFGC said rising energy and commodity costs and supply chain disruptions in the Middle East are pressuring margins and operating costs.
AFGC said continued pressure on margins and operating costs could weaken the sector’s ability to invest and grow over the long term. Maguire said business confidence to invest will factor into future growth.
“When businesses have confidence to invest, Australia benefits through more jobs, stronger regional communities and greater manufacturing capability,” he said.
AFGC is targeting industry turnover of $250 billion by 2030 and is calling for investment incentives, affordable and reliable energy, and smarter regulation to support growth.
The reporting period ended in June last year. The supply chain disruptions and cost pressures cited by AFGC are therefore not reflected in the results but could affect investment and growth over the long term.
- Further reading: AFGC-commissioned report outlines long-term FMCG workforce policies.
