Four Ways Changing Consumer Preferences Are Impacting Food Manufacturers in Australia

Consumer tastes are changing - Is your business keeping up?

The Australian food industry is evolving at a rapid pace, driven by shifting consumer preferences and increasing demand for healthier, more sustainable, and ethically produced food options. Food manufacturers who don’t adapt risk being left behind as buyers make more conscious choices about what they eat and who they buy from.

The numbers don’t lie:

• 74% of Australians say sustainability influences their purchasing decisions. (Nielsen, 2023)

• The plant-based food market in Australia is expected to reach $9 billion by 2030. (CSIRO, 2023)

• More than 60% of consumers actively look for “clean label” foods with minimal ingredients and no artificial additives. (Mintel, 2023)

So, what key trends are shaping the future of food manufacturing in Australia? Let’s dive in.

1. Demand for healthier, functional foods

Consumers are more health-conscious than ever, looking for food that not only tastes great but also provides real nutritional benefits. This has led to a surge in demand for:

• Plant-based alternatives – From meat substitutes to dairy-free products, the rise of flexitarian diets is driving major growth.

• Functional foods – Products with added benefits like probiotics, collagen, and adaptogens are becoming mainstream.

• Clean labels – Consumers want transparency, with simple, recognisable ingredients and no artificial additives.

Food for thought:

• Reformulate recipes to reduce sugar, sodium, and artificial ingredients.

• Explore fortified and functional foods to meet growing consumer expectations.

• Clearly label nutritional benefits to boost consumer trust and engagement.

2. Sustainability & ethical sourcing are non-negotiable

Australians are demanding more from brands - not just great products, but eco-friendly, responsibly sourced, and ethically produced food. Key shifts include:

• Sustainable packaging – Brands are moving away from plastics in favour of compostable, recyclable, or edible packaging.

• Carbon footprint awareness – Businesses are being scrutinised for their environmental impact, from farming practices to transport emissions.

• Ethical supply chains – Consumers expect food manufacturers to source ingredients responsibly, treating workers and animals fairly.

Food for thought:

• Invest in sustainable sourcing and eco-friendly packaging to stay competitive.

• Be transparent about where ingredients come from and how they are produced.

• Highlight sustainability efforts through marketing and product labeling.

3. The rise of convenience & on-the-go eating

Today’s fast-paced lifestyles mean that convenience is king. Food manufacturers must cater to consumers who want quick, healthy, and easy-to-consume options without compromising on quality.

• Pre-portioned, ready-to-eat meals – Consumers are looking for fresh, nutritious meals with minimal prep time.

• Single-serve & resealable packaging – On-the-go snacking continues to dominate, with packaging innovations enhancing portability.

• Quick-service innovations – Retail-ready frozen meals and fresh snack options are becoming more premium.

Food for thought:

• Develop nutritious, ready-to-eat products with clean ingredients.

• Innovate with smart, sustainable packaging that enhances convenience.

• Partner with foodservice providers and retailers to expand distribution.

4. Digital-first shopping & direct-to-consumer growth

The way people buy food is changing, with online ordering and direct-to-consumer (DTC) sales surging. More consumers are skipping supermarkets and opting for brands they can buy from directly online.

• E-commerce & online grocery shopping – Digital food sales continue to climb, with more people buying specialty products online.

• DTC subscription models – Meal kits, specialty food boxes, and recurring product deliveries are booming.

• Social commerce & digital marketing – TikTok, Instagram, and influencer partnerships are now powerful sales drivers.

Food for thought:

• Develop DTC channels to sell directly to customers, cutting out the middleman.

• Invest in digital marketing and social commerce to stay competitive.

• Optimise packaging for e-commerce shipping and shelf stability.

Final food for thought: Adapt or get left behind

Consumer preferences are evolving faster than ever, and food manufacturers need to embrace innovation, sustainability, and digital transformation to stay ahead. The brands that listen, adapt, and respond will thrive - while those that don’t risk falling behind.

Is your business ready for the future of food? Let’s chat about how you can pivot to meet the changing demands of the Australian market.