The food and grocery manufacturing industry in Australia has demonstrated robust growth, further solidifying its significance as the country’s biggest manufacturing sector and a crucial provider of regional employment opportunities.
The Australian Food and Grocery Council’s (AFGC) State of the Industry 2023-24 report reveals that the sector’s turnover has experienced a 5.3 per cent growth, equating to a total of $173 billion.
Employment in the industry has also seen an increase of 4.4 per cent, resulting in almost 300,000 people now being employed in the sector, with over a third of these individuals located in regional Australia.
Exports within the industry recorded a 5.2 per cent growth, while imports declined by 3.3 per cent. Interestingly, the US has surpassed China as the leading export market for Australia.
Colm Maguire, CEO of AFGC, expressed his optimism for the sector’s future, emphasizing its “enormous potential”. He highlighted the need for policy and strategic backing as key for continued growth.
Maguire added, “With the proper policy framework and strategic support, the food and grocery manufacturing sector can further enhance Australia’s economy – fostering regional employment, reinforcing Australia’s standing as a strong manufacturing nation, and securing our food and grocery supply amidst an increasingly complicated global landscape.”
Despite the encouraging figures, the report also drew attention to certain challenges faced by the sector. These include an 11 per cent decline in capital investment, which currently stands at $3.8 billion, and ongoing cost pressures.
As the Albanese Government progresses with its “Future Made in Australia” agenda, the AFGC argues that the food and grocery manufacturing industry is in a strong position to take the lead. This is reflected in their proposed seven productivity pillars, which concentrate on reducing bureaucracy, building resilient supply chains, and ensuring access to affordable, reliable energy.
What growth has the Australian food and grocery manufacturing industry seen recently?
The industry has seen a 5.3 per cent increase in turnover, equating to $173 billion. Employment in the sector has risen by 4.4 per cent, with nearly 300,000 people now employed.
Who is now Australia’s top export market?
The US has now overtaken China as Australia’s top export market.
What challenges does the Australian food and grocery manufacturing industry face?
The industry faces challenges such as an 11 per cent decrease in capital investment and ongoing cost pressures.
