Australia’s food and grocery manufacturing sector continues to grow, reinforcing its position as the nation’s largest manufacturing industry and a cornerstone of regional employment and economic resilience.

According to the Australian Food and Grocery Council’s (AFGC) State of the Industry 2023-24 report, based on ABS data, the sector recorded a 5.3% increase in turnover to $173 billion and a 4.4% rise in employment, now supporting 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.

AFGC CEO Colm Maguire said: “This is a sector with enormous potential. 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 impressive, the report also highlights areas for improvement, 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

• 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.

As the Albanese Government advances its ‘Future Made in Australia’ vision, food and grocery manufacturing stands ready 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 detail on areas industry is seeking collaboration, see the AFGC’s Productivity Playbook.

Explore the full State of the Industry report and interactive data here.