
Australian food and beverage manufacturers closed 2025 with their strongest quarter on record, new data shows.
According to Unleashed‘s latest Manufacturing Health Index, which tracks more than 500 Australian firms, beverage manufacturers averaged $627k in revenue in the final quarter of 2025.
Food manufacturers weren’t far behind, averaging $709,831 for the same period, a big jump from $546,229 at the same time the year before.
Reading the numbers
Beverage makers also saw their profit margins climb to 35.9%, up from 27.8% in the same quarter last year. Across the board, Australian food and drink firms held steady with 5.1% sales growth and profit margins of 38.47%, while many households continued to feel the broader pressure of rising living costs.
Unleashed Head of Product Jarrod Adam says the holiday period was a key driver. “The holiday period provided a vital boost for lifestyle-focused manufacturers. It’s a clear indicator that despite broader cost-of-living pressures, there is still resilient demand for high-quality, Australian-made consumer goods.”

Buying smart, not big
Interestingly, Australian manufacturers aren’t sitting on mountains of stock. Unlike their counterparts in the UK and New Zealand, who stocked up heavily, local firms kept inventory lean while ramping up purchasing by 22%, essentially buying only what they need as orders come in.
Delivery lead times also came in at 17 days for the quarter, well below where they sat throughout 2024.
“Australian businesses are moving quickly,” says Adam. “The disconnect we’re seeing between lower stock levels and higher purchase values suggests a move toward just-in-time replenishment. Firms aren’t sitting on mountains of cash tied up in inventory; they are buying precisely what they need to meet immediate demand.”
What’s next
The picture for 2026 is less rosy. The RBA raised interest rates to 3.85% in February, with another potential hike flagged for later this month. Inflation is expected to peak at around 4.2% by mid-2026 before easing back toward 2.5% by mid-2028.
Ongoing conflict in the Middle East adds further uncertainty, with rising energy costs likely to squeeze supply chains and margins. Many manufacturers are already investing in automation and data tools to try to keep a lid on costs.
“The challenge for 2026 is productivity,” says Adam. “Manufacturers must leverage technology to manage these tighter cycles and ensure they have the visibility required to avoid stockouts during demand spikes, without sacrificing the lean efficiency they’ve worked so hard to achieve.”
*The Manufacturing Health Index assesses SME manufacturer performance via a big-data approach. Drawing on anonymised, aggregated transactions from Unleashed-using manufacturers in the UK, Australia and New Zealand, the dataset tracks sales revenue, gross margin percentage, purchase orders, lead times, and stock volumes.
Source: Ponder PR
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