Top FMCG statistics you need to know for 2025

The Fast-Moving Consumer Goods (FMCG) sector is a dynamic and highly competitive industry, playing a vital role in the everyday lives of consumers.

With rapidly changing consumer preferences, technological advancements, and market trends, staying informed about the latest FMCG statistics is essential for businesses looking to thrive in 2025. 

This blog looks into the most important FMCG statistics to help you understand the current outlook and future trends.

FMCG Statistic #1: Food Retailing Dominates Australia’s FMCG Sector with $168 Billion in Revenue

In 2023, food retailing emerged as the leading revenue generator in Australia’s retail trade, accumulating over 168 billion Australian dollars. This impressive figure highlights the significant role that FMCG products, particularly food and beverages, play in the Australian economy. Notably, this statistic excludes the additional 64 billion Australian dollars contributed by cafés, restaurants, and takeaway food services, underscoring the dominance of FMCG within the broader retail prospect.

The substantial revenue from food retailing reflects Australian consumers’ consistent demand for essential goods, making the FMCG sector a critical component of the retail industry.

 

FMCG Statistic #2: FMCG Brands Must Adapt to $8 Trillion Market by 2027

In 2023, global retail e-commerce sales soared to an estimated 5.8 trillion U.S. dollars, with projections indicating a remarkable 39% growth over the next few years. By 2027, this figure is expected to surpass eight trillion dollars, highlighting the immense potential of online retail.

For FMCG brands, this rapid growth in e-commerce presents both opportunities and challenges. With global giants like Alibaba and Amazon leading the charge — Amazon is expected to surpass Alibaba with an estimated 1.2 trillion U.S. dollars in online sales by 2027 — FMCG companies must adapt their strategies to capture a share of this expanding market.

 

FMCG Statistic #3: Private Labels Set to Drive Growth for 53% of Retailers in 2024

Private labels are becoming increasingly influential in the FMCG market, with 53% of retailers projecting them to be their top growth driver in 2024, according to the NIQ x Advantage Manufacturer and Retailer Outlook Survey. This shift highlights the growing consumer demand for value-oriented products that don’t compromise on quality.

For FMCG manufacturers, this trend presents a significant opportunity to collaborate with retailers and develop private-label products that meet evolving consumer preferences. As private labels continue to gain traction, manufacturers who can effectively innovate and align with retailer strategies stand to thrive in this competitive landscape.

 

FMCG Statistic #4: Sustainability Influences Over 38% of Australian Consumers’ Purchase Decisions

Sustainability is playing an increasingly crucial role in consumer behaviour, with over 38% of Australian consumers reporting in 2022 that they always consider sustainability in their purchase decisions. This statistic underscores the growing importance of environmentally responsible practices within the FMCG sector.

As consumer awareness around sustainability continues to rise, FMCG companies must prioritise eco-friendly practices — from sourcing and production to packaging and distribution — to meet the expectations of the Australian market. With only 5% of consumers indicating that they never consider sustainability, the pressure is on brands to demonstrate their commitment to the environment as a core part of their value proposition.

 

FMCG Statistic #5: Australia’s Inflation Rate Hits 3.5% as of July 2024

Inflation has been a significant factor influencing FMCG pricing in Australia. In 2024, the inflation rate for FMCG products is expected to reach 3.5%, leading to higher prices across various categories, particularly in food and beverages. This increase is attributed to rising production costs, supply chain disruptions, and increased demand.

Australian consumers are becoming more price-sensitive, with many opting for value-oriented products and bulk purchasing to manage their budgets. FMCG companies are responding by adjusting their pricing strategies, offering promotions, and introducing smaller pack sizes to cater to budget-conscious consumers.

 

FMCG Statistic #6: 67% of Australian Consumers Prefer Products That Promote Health and Wellness

Health and wellness trends continue to shape the FMCG market in Australia. In 2024, 67% of Australian consumers indicate that they are more likely to purchase products that promote health and wellness. This includes items such as organic foods, plant-based alternatives, and products free from artificial additives.

The increasing focus on healthy living has led to a surge in demand for products that align with these values. FMCG companies are responding by expanding their portfolios to include healthier options, reformulating existing products to reduce sugar and fat content, and highlighting nutritional benefits on packaging. For businesses in the FMCG sector, staying ahead of health and wellness trends is key to attracting and retaining health-conscious consumers.

 

FMCG Statistic #7: Opportunities in Australia’s Food and Grocery Manufacturing Sector by 2030

Australia’s food and grocery manufacturing sector stands as the largest contributor to the nation’s manufacturing industry, employing over 276,000 individuals. Remarkably, 40% of these jobs are located in rural and regional areas, emphasising the sector’s role in supporting diverse communities. A recent report from the Australian Food and Grocery Council (AFGC) projects the potential for this sector to double its value to $250 billion by 2030 through targeted strategies.

Growth opportunities highlighted in the report include fostering innovation, increasing exports, and integrating sustainable practices. Challenges such as high operational costs and limited global competitiveness have been identified as barriers to profitability. Addressing these vulnerabilities through advanced manufacturing technologies, sustainable packaging development, and enhanced digital capabilities could unlock the sector’s full potential.

The report also points to government-backed initiatives as vital to progress. Co-investment grants and high-tech training programs aim to bolster workforce skills, while a strategic export growth plan targeting a 10% annual increase in exports could drive economic resilience and create jobs.

Australia’s reputation for producing high-quality, clean, and sustainable goods remains a strength. Strategic actions to build on this foundation could position the food and grocery manufacturing sector for substantial growth in the years ahead.

 

FMCG Statistic #8: 75% of FMCG Companies Prioritise Digital Transformation, Yet Only 12% Feel Fully Equipped

Digital transformation is a critical focus in the FMCG sector, with 75% of companies identifying it as a high or top priority for their supply chain management, according to a recent survey conducted by Reuters. However, despite this emphasis, only 12% of respondents believe their current technology investments fully meet the needs of their supply chains. 

This gap highlights the necessity for not just increased digital investments, but also the development of capabilities that can effectively leverage these technologies to drive real results in supply chain efficiency and effectiveness.

 

FMCG Statistic #9: Sustainability and Transparency in Packaging Drive Consumer Choices

Packaging remains a pivotal factor influencing consumer decisions in the FMCG sector, particularly regarding sustainability and transparency. A 2021 survey revealed that 49% of Australian consumers actively check if a product’s packaging is sustainable before making a purchase. Additionally, over 40% of respondents consider factors such as the product’s origin, ingredients, and materials used, highlighting a broader demand for transparency.

For FMCG companies, this data underscores the importance of aligning with consumer values. Investing in sustainable packaging solutions, such as recyclable materials and minimalistic designs, not only meets environmental expectations but also fosters trust among buyers. Transparent labelling that clearly communicates product details can further strengthen brand loyalty in a competitive marketplace.

Meeting these consumer preferences is no longer optional. Brands that prioritise sustainability and transparency in their packaging are better positioned to resonate with eco-conscious shoppers and gain a competitive edge.

 

FMCG Statistic #10: Australia’s Consumer Goods Retailing Industry Reaches $247 Billion in 2023

In 2023, Australia’s consumer goods retailing industry achieved an estimated revenue of $247 billion, marking a compound annual growth rate (CAGR) of 2.9% over the past five years. This sector encompasses a diverse range of products, including household goods, clothing, footwear, personal accessories, and other consumer items.

The substantial revenue underscores the sector’s pivotal role in Australia’s economy, reflecting consistent consumer demand and spending patterns. For businesses operating within this industry, staying attuned to market dynamics and consumer behaviour is crucial for sustaining and expanding their market share in an increasingly competitive environment.

 

FMCG Statistic #11: Supermarkets Drive $139 Billion in Annual Revenue in Australia

In 2023, Australia’s supermarket and grocery store retail industry generated over $139 billion in revenue, marking a substantial increase of over $40 billion compared to 2014. This consistent growth underscores the pivotal role supermarkets play in Australia’s FMCG market.

The sector is heavily concentrated, with the Woolworths Group and Coles Group dominating market share, particularly in populous states like New South Wales and Victoria. Other players, such as Aldi and independent IGA stores, contribute to the competitive landscape, offering consumers a variety of shopping options.

Convenience remains a critical factor influencing Australian shoppers’ loyalty to their preferred supermarkets. Accessibility, product availability, and pricing are major drivers, though frustrations like stock shortages can prompt consumers to explore alternatives. For FMCG brands, establishing strong partnerships with these retail giants is crucial to ensuring their products remain within reach of a broad consumer base.

 

FMCG Statistic #12: E-Commerce FMCG Market to Reach $45.4 Billion by 2032

The e-commerce market for FMCG is projected to grow from $11,366.5 million in 2024 to an impressive $45,402.69 million by 2032, representing a compound annual growth rate (CAGR) of 18.90%, according to Credence Research. This significant growth reflects the rising reliance on digital shopping channels for everyday consumer goods.

Convenience, broader product availability, and competitive pricing continue to fuel the expansion of FMCG e-commerce. Consumers are increasingly opting for online platforms to fulfil their shopping needs, reshaping traditional retail dynamics.

For FMCG companies, the rapid market expansion underscores the importance of enhancing digital strategies. Investing in user-friendly online platforms, mobile-optimised websites, and efficient logistics can help brands stay competitive. As consumer habits evolve, businesses that prioritise seamless online shopping experiences stand to gain a substantial share of this booming market.

 

FMCG Statistic #13: Online Grocery Sales in Australia to Reach $13.99 Billion in 2023

The online Fast-Moving Consumer Goods (FMCG) market in Australia has experienced significant growth in recent years, driven by consumers’ increasing preference for the convenience and variety offered by online shopping. In 2022-23, over 82% of Australian households made at least one online purchase, with 60% making more than 12 purchases annually. This surge in online activity contributed to an online goods expenditure of $63.8 billion, accounting for 18% of all retail sales and marking an annual growth rate of 1.7%.

A substantial portion of this growth has been attributed to the online grocery sector. In 2022-23, more than 2.7 million Australian households spent $8.6 billion on food and beverages online. This trend is expected to continue, with projections indicating that the online grocery delivery market in Australia will reach AUD 13.99 billion in 2023, driven by the convenience of doorstep delivery and increased internet accessibility. The market is anticipated to witness a compound annual growth rate (CAGR) of 12.43% from 2024 to 2032.

For FMCG companies, this trend underscores the importance of enhancing their digital presence and e-commerce capabilities. Investing in user-friendly online platforms, offering competitive pricing, and ensuring a seamless shopping experience are essential strategies to capture a substantial share of this rapidly growing market. Additionally, focusing on sectors like online food delivery, which has been a significant contributor to e-commerce growth, can provide further opportunities for expansion.

 

FMCG Statistic #14: FMCG Sector Contributes 6-7% to Australia’s GDP as Part of the Manufacturing Industry

The Fast-Moving Consumer Goods (FMCG) sector is a cornerstone of Australia’s economy, significantly contributing to the nation’s Gross Domestic Product (GDP). The manufacturing industry, which encompasses the FMCG sector, accounts for approximately 5.9% of Australia’s GDP (Statista: Data in this snapshot are the latest available as of 6 November 2024). This substantial contribution underscores the sector’s vital role in driving economic growth, supporting employment, and ensuring the availability of essential goods to consumers.

Given its significant impact, the FMCG sector is crucial for Australia’s overall economic stability and prosperity. Businesses operating within this industry must remain attuned to market dynamics and consumer behaviour to maintain and enhance their market share in an increasingly competitive landscape.

 

FMCG Statistic #15: Supermarket Chains Control Over 80% of the FMCG Market

Major supermarket chains, such as Woolworths and Coles, control over 80% of the FMCG market in Australia. This market concentration gives these retailers significant influence over product pricing, availability, and consumer choices.

For FMCG brands, establishing strong relationships with these supermarket chains is critical for success. Collaborating with major retailers can provide broader market access and help brands navigate the competitive landscape of the FMCG sector.

Source: Statista

 

FMCG Statistic #16: Convenience Stores Generate $3.26 Billion in Grocery Sales

In 2022, grocery retail sales from convenience stores in Australia totalled approximately 3.26 billion Australian dollars. This figure underscores the significant role that convenience stores play in the fast-moving consumer goods (FMCG) sector, particularly in urban areas where consumers prioritise quick and easy access to everyday products.

Despite accounting for a smaller share of the overall FMCG market compared to major supermarket chains, convenience stores cater to the fast-paced lifestyles of many Australians by offering ready-to-eat items, beverages, and other essentials. Their strategic locations and extended operating hours make them a vital component of the retail landscape, meeting the immediate needs of consumers and contributing to the diversity and accessibility of the FMCG sector.

 

FMCG Statistic #17: 57% of Consumers Prefer Mobile Apps for FMCG Shopping

Mobile shopping is a rapidly growing trend, with 57% of consumers finding mobile apps more convenient for purchasing groceries and other FMCG items. This preference for mobile apps is driven by the ease of use and accessibility they offer.

For FMCG brands, optimising the mobile shopping experience is crucial. Ensuring that products are easily searchable, providing mobile-friendly payment options, and offering personalised promotions through apps can significantly enhance the customer experience and drive sales.

 

FMCG Statistic #18: 85% of Australian Consumers Demand Transparency in Ingredients and Sourcing

Transparency is increasingly critical to Australian consumers, with 85% expecting brands to be clear about the ingredients and sourcing practices of their products. This demand is particularly strong in the food and beverage sector, where health, safety, and sustainability are top concerns.

For FMCG brands, being transparent is essential not only for regulatory compliance but also for building trust and loyalty among consumers. Clear labelling, honest marketing, and open communication about product origins and sustainability practices can help brands meet these expectations and foster long-term customer relationships.

 

Ready to Stay Ahead in the FMCG Industry?

The FMCG sector is a dynamic and rapidly evolving industry, with trends such as online shopping, sustainability, and health and wellness shaping the market in 2024. 

By staying informed about the latest statistics and understanding the factors driving consumer behaviour, businesses can develop strategies that resonate with their target audience and drive growth.

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