Australia’s food market is embracing the new normal

March 2025 marks the five-year anniversary of the start of a chaotic period for the Australian food ecosystem. A convergence of forces was at the cause, including a global pandemic, labour markets upheaval, global and local supply chain bottlenecks, geopolitical conflicts driving commodity and energy prices higher, and weather-related supply losses.

The result was a period of reduced food availability, multi-decade high food price inflation, and swings in channel performance. This happened amid an unprecedented decline in real disposable incomes for Australian households, which changed food purchasing behaviour, particularly among lower-income younger Australians.

The operating environment has been challenging for all players in the Australian food market but appears to be normalising as we start 2025. Behind the scenes, there has been extensive structural change to the market and supply chains across the foodservice and retail sector.