Australia’s food market is “normalising” after a turbulent five years, according to a new Rabobank report.
The period has been marked by factors such as Covid, supply chain disruptions, and inflation.
However, Rabobank says the market is now adjusting to a “new normal,” driven by shifts in consumer buying habits and significant structural changes to both the market and supply chains. Primary producers, as well as food and beverage manufacturers, are being forced to adapt to the evolving “food ecosystem.”
The report, released by the bank’s RaboResearch division, highlights that March 2025 will mark the “five-year anniversary” of the disruptive period for Australia’s food market.
RaboResearch senior analyst – consumer foods, Michael Harvey, said the upheaval was due to a “convergence of forces,” including the global Covid pandemic, labour market shifts, supply chain bottlenecks, rising commodity and energy prices caused by geopolitical tensions, and local weather-related supply shortages.
“As a result, we saw reduced food and ingredient availability, multi-decade high food price inflation, and changes in consumer behaviour, including a shift away from out-of-home dining to eating in,” Harvey said.
“This all occurred during an unprecedented decline in real disposable incomes for Australian households, altering food-purchasing habits, particularly among lower-income, younger Australians.”