The Australian food and grocery manufacturing industry now employs over 301,000 people.

According to the Australian Food and Grocery Council’s (AFGC) ‘State of the Industry’ report, employment reached record levels in 2024-25.

Food and grocery manufacturing now accounts for 33% of all manufacturing jobs in Australia, with more than a third of the workforce based in regional communities.

Speaking at AFGC’s APEX 2026 conference, AFGC CEO Colm Maguire said the figures highlight the importance of the strong domestic manufacturing sector.

“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,” he said.

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

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

“When businesses have confidence to invest, Australia benefits through more jobs, stronger regional communities and greater manufacturing capability,” Mr Maguire said.

“That investment helps businesses grow, improve productivity and create opportunities for future generations.”

While the report points to a sector continuing to expand, the AFGC says 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,” says the industry association. “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,” Mr Maguire said. “The task now is ensuring we have the policy settings that allow that growth to happen here.”