COUNTRY PROFILE
Discover more about the Australian market including overviews about the retail, foodservice, and food-processing sectors. Events, resources, and more are linked throughout the profile.
$1 Billion
total U.S. exports of processed foods to Australia in 2024
26.7 million
total population in 2024
30%
of all Australians were born overseas
Focus Economics reports that Australia boasts a prosperous, Western-style capitalist economy, with a per capita Gross Domestic Product (GDP) among the highest in the world. Australia’s economic outlook is favorable, buoyed by a large and growing consumer market, abundant natural resources, and a stable economic environment.
Australia also ranks eighth in the world for U.S. exports of processed foods, totaling US$974.9 million in 2023, which was a decline of growth of 10% from that of 2022. In 2024 U.S. exports of processed foods to Australia grew 8% to over US$1 billion.
Top U.S. processed food exports to Australia in 2024 included:
$38.6 Billion
total retail sales in the packaged food market in Australia in 2024
67%
of the market is controlled by the top two Australian grocery retailers
$47 Billion
estimated retail sales in the packaged food market by 2029
According to Euromonitor, retail sales in the packaged food market in Australia reached US$38.6 billion in 2024. By the year 2029 the retail sales in the packaged food market in Australia is expected to reach US$47 billion.
FAS Post Canberra reports that supermarket and grocery expenditures continue to account for the bulk of food retailing purchases with a share of 67%. Australia’s food retail sales reached US$137.6 billion in 2023. The value of Australian consumer-oriented product imports totaled US$13.9 billion in 2023. The U.S. accounted for US$1.3 billion or 10% of Australia’s total food-related imports. Most of Australia’s imports in these sectors are from New Zealand, with the U.S. being the second largest supplier.
The Australian supermarket industry is highly competitive, dominated by Coles and Woolworths, which together control 67% of the market. Independent players are also unable to match the marketing budgets of larger retailers and will therefore struggle to compete.
FAS Post Canberra reports that prospects already in the market with good sales potential include distilled spirits, cheese, dog and cat food, baked snack foods (pastries, pretzels, etc.), and chocolate. Products not present in the market in significant quantities which have good sales potential ice cream, wine, beer, tea, and non-alcoholic beverages
$39.1 Billion
value of the Australian consumer foodservice industry in 2023
FAS Post Canberra reports that the rapid escalation of inflation and the overall cost of living have posed significant challenges to the expansion of Australia’s consumer foodservice industry throughout 2023 and 2024. Dining out or food delivery has been perceived as a luxury, leading to a decline in demand for full-service restaurants. Consumers have increasingly opted for more affordable, limited-service restaurants, like fast-food chains.
The Australian consumer foodservice industry was valued at A$59 (US$39.1) billion in 2023.
Australia’s foodservice industry is dominated by independent limited-service, full-service, and café/bar establishments.
FAS Post Canberra reports that U.S. products with good sales potential in the Australian hotel, restaurant, institutional (HRI) sector include pork and pork products (cooked bacon and sausage in casings), dairy products (cheese, whey, and ice cream), distilled spirits, and processed products (snack foods, bread, pastry, and mixes and doughs). Products not present in significant quantities but which have good sales potential include wine, non-alcoholic beverages, and candy and chocolate.
Food-Processing is the #1
manufacturing sector in the country
FAS Post Canberra reports that Australia’s food-processing industry is the largest manufacturing sector in the country. It is comprised of over 16,000 enterprises and employees over 272,000 people. Australia’s food, beverage, and grocery sectors reign supreme in the manufacturing landscape, contributing to a third of all manufacturing activity.
Consumers are increasingly choosing products and brands that champion environmental responsibility. In response, food producers and retailers have significantly invested in developing sustainable practices. Facing rising costs of living, increasing interest rates, and economic uncertainty, they increasingly prioritize the type and quality of ingredients alongside price when making purchasing decisions.
FAS Post Canberra reports that products present in the market with good sales potential include distilled spirits, dairy products (cheese, whey, and ice cream), bakery goods (cereals, pasta, pastry, cookies), dog and cat food, and chocolate. Products not present in the market with good sales potential include nuts, wine, no/low alcohol spirits, and beer.
