2020: Industry at a Crossroads report

AFGC and AT Kearney produced this industry-first, fact-based report 2020: Industry at a Crossroads to investigate the intense challenges facing industry, future economic trends and key reforms needed to improve industry’s sustainability, profitability and competitiveness.

Using a combination of economic modelling, interviews and surveys with industry leaders, our report concludes that food and grocery manufacturing is facing pressures on many fronts.  Retailer concentration, a high Australian dollar, low-cost country manufacturing, energy prices, global commodity volatility and labour scarcity will continue to create challenges for the sector.

Other key findings and trends outlined in the industry-first report, released at AFGC’s Industry Leaders’ Forum in Canberra, include:

  • 55 per cent of surveyed food and grocery manufacturers were negative about the future of industry
  • If there are no policy reforms, industry’s employment numbers could fall from 312,000 to around 180,000 by 2020 – a loss of up to 130,000 jobs
  • Up to a further 6,000 jobs are forecast to be lost in associated industries including agriculture
  • Towns in regional NSW, Victoria and QLD are expected to be hardest hit by employment losses
  • The retail environment is expected to remain as challenging, if not more challenging, for food and grocery manufacturers over the coming decade
  • The retail market is expected to remain highly concentrated, with Coles and Woolworths forecast to have a combined supermarket share of over 80 per cent in many categories

Download the report below

Click here to view the 2020: Media release