Member Matters
Powering food and grocery manufacturers: a new report
23 July 2025
Food for thought
Australia’s food and grocery manufacturing sector is a powerhouse – and the third largest industrial energy users. As we plan to grow to $250 billion in turnover by 2030, access to affordable, reliable energy will be key.
New research conducted by consultants Oxford Economics for AFGC, for the first time reveals the scale of the industry’s energy risks, opportunities and the policy levers that can go towards energy security.
Here’s the reality: 40% of our energy comes from gas – and for a lot of manufacturers, there’s no substitute. Alternatives exist, but they’re expensive, patchy, and not always technically viable.
That’s why this report matters. It shows that energy demand in our sector could increase by 35% by 2030. To meet that demand the industry investment of up to $13.7 billion in that period.
The good news? The policy conversation is moving. Government is recognising the importance of gas supply, and now is the time to act. We’re calling for investment support, a stable grid and ongoing access to reliable energy sources to keep Australian manufacturing strong.
This is about future-proofing jobs, shoring up food security, and backing the regions that power this vital sector.
Read the full report here.
Scott McGrath
Director – Government and Media Relations
