WHY THIS IS IMPORTANT TO WISCONSIN: Wisconsin food businesses may find opportunities, as the U.S. already holds the No. 2 spot for Australia’s food imports.
Australians are frequenting their local grocery stores, keeping revenue on the rise.
With population growth, greater access to online sales, and a rising demand for healthy, high-quality foods, Australia’s supermarket and grocery retail sector has been growing steadily over the past decade, reaching annual revenue of $140 billion AUD ($98 billion USD) in 2024, according to IBISWorld.
Market research group IMARC pegs the 2024 figure even higher, at $150 billion USD, and projects it could reach $270 billion USD in 2033.
Australia’s grocery industry is extremely competitive; in fact, it is one of the most fiercely contested sectors in the country. Woolworths and Coles dominate the sector, according to a report by the Australian Competition and Consumer Commission (ACCC) issued in February 2025. The ACCC estimates Woolworths draws 38% of supermarket grocery sales nationwide and Coles has 29%. The other two biggest chains are ALDI, with 9% of the market, and Metcash, representing the independent supermarkets it supplies, at 7%.
Food shoppers generally have favorable views of U.S. food and beverage exporters. Of the $12.3 billion worth of consumer-oriented food products that Australia imported in 2023, 10% ($1.3 billion worth) came from the U.S.—second only to New Zealand, which provided 17% of the food imports, according to the U.S. Department of Agriculture’s Global Agricultural Information Network.
U.S. brands are well-represented in Australian supermarkets, and local consumers like to experiment with new and innovative food products.
Recent trends shaping Australia’s supermarket and grocery retail market include:
• Rise of private label products: Australian supermarket giants have seen significant growth in private label sales as consumers turn to more affordable options amid cost-of-living pressures. Coles, for example, has expanded its line to include more than 1,100 Coles-label items. In some cases, Australian supermarkets are seeking international manufacturers, rather than local companies, to produce some private label products.
• Growing demand for health-conscious products: Higher-quality and healthier ingredients in packaged foods are gaining popularity. The market has seen a surge in organic, low-sugar, plant-based, gluten- or nut-free, high-protein, and low-carb options to support healthier lifestyles. Changing lifestyle trends have also driven demand for fish and seafood as premium protein alternatives.
• Technological innovation: Major Australian supermarkets are investing heavily in technology to enhance customer experiences, streamline operations, and improve supply chain efficiency. Innovations include self-checkout kiosks, artificial intelligence, and machine learning to gain deeper insights into customer behavior.
With imports from the U.S. already strong, Wisconsin companies with food products or technology innovations suitable for grocery stores may benefit from attending any of Australia’s food and beverage industry events: Food & Hospitality Week, Naturally Good, and Fine Food Australia.
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