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After years of swings and price shocks, food and beverage retail is settling into steady growth ﻿

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Australia’s food and beverage sector is finding its footing — and, for the first time in several years, showing signs of steady, sustainable growth.After several years of huge month-to-month swings – driven by the pandemic, floods and supply snags – food sales are stabilising.&nbsp;According to the latest figures from the Australian Bureau of Statistics1, food retailing rose 0.9 per cent ($137.5 million) in June (seasonally adjusted), fuelled by a 1.2 per cent lift in supermarket and grocery store sales. By contrast, cafés, restaurants and takeaway food services slipped 0.4 per cent, suggesting that households remain mindful of budgets but are still spending at the supermarket checkout.“I’d describe sentiment across F&amp;B in Australia right now as guardedly optimistic,” says Ash Cooke, director at consultancy FutureFood. “There’s a sense that the worst of the shocks — cost of living, inflation, supply disruptions — are becoming more manageable, especially as interest rates stabilise. But businesses, consumers and investors are still on alert: optimism isn’t universal, and many are proceeding with caution.”

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“I’d describe sentiment across F&amp;B in Australia right now as guardedly optimistic.”

That cautious optimism is underpinned by a sector that remains a cornerstone of the national economy. The Australian Food and Grocery Council’s latest State of the Industry 20242 report shows the industry now supports nearly 300,000 jobs, more than a third of them in regional Australia. Exports climbed 5.2% over the year, with the United States overtaking China as Australia’s top export market.<h1>Numbers to know</h1><h2>$716m</h2>The amount that Australians spent on protein powder in the first half of this year alone (the equivalent of $26.53 per person). The figure underscores a growing global enthusiasm for protein, which is increasingly being added to a range of foods from ice cream to yoghurt and even alcoholic beverages.&nbsp;<h2>50 years</h2>Cocoa prices are finally beginning to fall after soaring to a 50-year high ($12,000 per tonne), according to <a href="https://tradingeconomics.com/commodity/cocoa" rel="noopener noreferrer" target="_blank">Trading Economics.</a> Prices began to rise in late 2023 due to poor harvests in West Africa and are now settling around $8000 per tonne. Retail chocolate prices&nbsp;<h2>50&nbsp;</h2>Fishbowl has now opened 50 stores around Australia (and launched in the US). The success of the chain comes as other local fast-food brands challenge the dominance of overseas giants McDonalds and KFC. Zeus Street Greek now has more than 40 outlets, while Betty’s Burgers is about to open its first drive-through.<h2>$2500</h2>The value of food the average Aussie throws away due to unclear labelling. <a href="https://endfoodwaste.com.au/wp-content/uploads/2025/06/RMIT_1.2.4_EFWCRC_1d_positionPaper_FA_digital_lr.pdf" rel="noopener noreferrer" target="_blank">Research conducted by RMIT University</a>[iv] and End Food Waste Australia revealed that many Australians rely on date labels and did not feel confident using their senses to test food before disposing of it. Many consumers find labels like “store in a cool, dry place” unhelpful given Australia’s wide climate variations.&nbsp;<h1>Innovations</h1><h2>Cultivated meats</h2>Lab-grown (or cell-cultivated) meat has gained regulatory approval from Food Standards Australia New Zealand (FSANZ) in June. The approval was given to Sydney’s Vow, a lab-grown meat startup that creates Japanese quail foie gras. Lab-grown meat is different to plant-based meat as it is actual animal meat, but grown outside the animal’s body.<h2>Green alcohol</h2>Spanning more than 800 square metres, Dan Murphy’s has opened the doors to its newest store, featuring a green refrigeration system. The Sandy Bay store in Hobart includes a system that uses natural refrigerants instead of traditional gases and features a building management system designed to monitor and reduce energy use.<h2>Samoan cuisine</h2>Samoan restaurant TALA has been named among New Zealand’s very best, receiving the prestigious ‘3-hat’ ranking at the 2025 Cuisine Good Food Awards. Only six restaurants nationwide were awarded three hats this year, placing TALA in an elite group and marking a milestone for Samoan food and hospitality.<h2>Drive-through AI assistant</h2>Healthy fast-food chain Oliver’s has introduced the world’s first “contextually aware” AI drive-through assistant, named Ollie. Unlike most other AI drive-through assistants, Ollie can take orders while engaging in unscripted, natural conversations and a range of accents. The launch of Ollie comes as other fast-food chains, such as KFC and Hungry Jacks, trial AI-driven order-takers.&nbsp;1 <a href="https://www.abs.gov.au/statistics/industry/retail-and-wholesale-trade/retail-trade-australia/latest-release" rel="noopener noreferrer" target="_blank">ABS</a>2 <a href="https://afgc.org.au/wp-content/uploads/2025/08/State-of-Industry-2023-24.pdf" rel="noopener noreferrer" target="_blank">AFGC’s State of the Industry report</a>

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All references to any registered trademarks are the property of their respective owners. Afterpay does not endorse or recommend any one particular supplier and the information provided is for educational purposes only.

After years of swings and price shocks, food and beverage retail is settling into steady growth 

Australia’s food and beverage retail sector is stabilising after years of shocks. Explore the data, trends, and innovations driving growth.

Australian Food Retail Trends 2025: Steady Growth Ahead

Food retail reclaims its rhythm

From the kitchen to a $30m business: Nutra Organics shares how Afterpay has helped the health food brand grow.

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When Mark and Darlene Powell launched Nutra Organics from the kitchen table, they were among the first to appreciate the potential of “superfoods”.More than two decades later, Nutra Organics has become a $30m brand - and the husband and wife are still ahead of the curve. They understood the benefits of Afterpay early on, and began offering it to customers in 2018.&nbsp;“The consumer loves Afterpay… and we love it as a business,” says chief operating officer Ricki Harrison (Mark and Darlene’s daughter). “It’s with us for the long haul.”<h1>About Nutra Organics.</h1>Today, Nutra Organics sells one product every 30 seconds and supplies its supplements, powders and health products to thousands of stockists, from pharmacies to grocers and specialty stores.&nbsp;<h1>Afterpay increases average order value.</h1>When the brand began offering Afterpay, Harrison says they noticed an immediate increase in sales and average order value. “There was definitely an uptick straightaway, and people took advantage of the platform right off the bat,” says Harrison, who adds that customers who shop with Afterpay spend 10% more on average than those who pay with other methods.&nbsp;

“Afterpay makes buying more accessible: not everybody has $50 to spend on a protein powder every week."

<h1>Afterpay makes Nutra Organics more accessible.&nbsp;</h1>The Nutra Organics team is passionate about improving the wellbeing of their customers - and that means ensuring that products are accessible.“We're not an inexpensive product,” says Harrison. “Afterpay makes buying more accessible: not everybody has $50 to spend on a protein powder every week. Or say they want to buy three flavours of something because they want to see whether their kids like them – you can go ‘Oh, I'm going to buy all three because I'm going to get free shipping, I'm going to pay it off on Afterpay’ and you feel like you’re winning.”

<h1>Afterpay boosts subscriptions.</h1>Nutra Organics recently introduced a subscription service, partly aimed at making purchasing easier for busy mothers. Harrison says that offering Afterpay has been instrumental in getting customers on board. “We have many subscribers that use Afterpay – it's a super simple process.”Overall, she says, Afterpay makes life easier for customers. “It's super convenient for the consumer and just gives people an option. Plus, the platform is well established, people understand what it is.”<h1>Afterpay Day drives sales.</h1>Afterpay Day has become a key date in Nutra Organics’ marketing calendar. In August 2023, the number of purchases made with Afterpay nearly doubled compared to previous months. “We see a great lift in new customers during Afterpay Day,” adds Harrison.

Nutra Organics on how Afterpay grows sales.

Discover how Nutra Organics increases its average order value by offering Afterpay.

Driving sales: How Afterpay grows AOV for Nutra Organics

“Afterpay increases our average order value by 10%.”

Nutra Organics

Real retailers share how to make the most of Afterpay’s key sales event

In the competitive footwear market, it’s important to stay one step ahead of the rest. That’s why Melbourne brand Rollie Nation - known for its colourful, stylish loafers, trainers and flats - regularly takes part in Afterpay Day.&nbsp;“It’s just really great to get exposure to that Afterpay audience of core Gen Z and Millennial shoppers,” says Nishtha Mohil, Rollie’s digital and e-commerce manager.This year, sales soared by 1116%* during the Afterpay Day Sale period, and the sale attracted hundreds of new customers. It also helped re-engage lapsed customers; around one-fifth of those who shopped during the sale hadn’t shopped with Rollie Nation for more than six months.﻿“We saw great results and we were really happy,” says Mohil, who adds that Afterpay Day is one of only three sales events the brand takes part in.Reaching a new audience is a key benefit, she says.&nbsp;“We’re a growing brand and Afterpay gets a lot of traffic, with customers using it as a discovery platform.”

Afterpay gets a lot of traffic, with customers using it as a discovery platform.

Cocktail mixers e-tailer Mr. Consistent saw similarly impressive results from the most recent Afterpay Day event.&nbsp;Revenue increased by more than 400 per cent during Afterpay Day in August with Mr Consistent. marketing manager Brittany Stimson saying: “We’re extremely happy with the success.”Another key result from Afterpay Day was that referrals surged by 3100 per cent.<h2>How to make the most of Afterpay Day</h2>Register your offer: To be featured in Afterpay’s Shop Directory of sales offers, retailers must pre-register their offer or discount.&nbsp;Create an enticing offer: Develop a sale offer that will engage your customers. Most recently, Mr Consistent. created a gift with purchase offer, while Rollie Nation offered 30 per cent off, storewide.

Offering early access is a good way to get early traction.

Pre-promote the sale: Ensure your customers know that Afterpay Day is coming. Rollie Nation begun advertising the sale across its email and social channels several days before, and also offered a VIP preview for subscribers. “Offering early access is a good hack,” says Mohil. “You get early traction and it helps with being front of mind.”Train your staff: Before Afterpay Day begins, ensure your staff – both in-store and online customer support – are familiar with the discount or offer and understand how to use Afterpay. Source: Afterpay Internal Data 2021.

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Want to make the most of Afterpay Day sale? Local retailers share their tips.

Want to maximise sales this Afterpay Day? Here's how real retailers like you make the most of Afterpay Day sale

Afterpay Day tips for retailers: How to make the most of Afterpay Day

 How to drive more sales with Afterpay Day

 How to drive more sales with Afterpay Day Sale

Nutra Organics started as a small family business. Today it’s a leader in health and wellness

Mark Powell was working as a door-to-door salesman selling Weston’s Biscuits on Queensland’s Gold Coast when he realised he needed a change. The surfer and self-confessed “health nut” was a certified naturopath and homeopath with a vision for something bigger.“My wife Darlene, who is now our recipe developer, and I were way ahead of our time in terms of exploring nourishing foods,” says Mark.“I was the only one at school with mung beans for lunch,” laughs daughter, Ricki, 38, who is now head of production at&nbsp;<a href="https://nutraorganics.com.au/" rel="noopener noreferrer" target="_blank">Nutra Organics</a>&nbsp;(her sister Britney is head of finance). “My mum was always vehemently anti-plastic wrap!”But it wasn’t until 1999 that Mark decided to transform his passion for health foods into a business, offering “Super Greens” powders to health food stores and the local supermarket.“I remember Mum and Dad mixing the greens formula – a product we still sell today – on the kitchen table,” says Ricki. “That was in 1999. Back then, all the products were stored in the spare room between my room and my sister Britney’s room.”

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<h2>Slow, steady growth</h2>At first, growth for the company was slow. By 2010 Nutra Organics was a six-figure business; by 2016 it was a seven-figure business, and as of 2019 it has become an eight-figure business, with the website bringing in 40 per cent of customer revenue.&nbsp;“It’s important to have clear messaging and know your audience,” says Ricki of their success online. “If I had any advice for other businesses it would be to find out who you are, what you stand for and what you do better than anyone else. There is so much focus on competitors and similar products on the market – don’t let it become a distraction.”

“Our customers now have the added certainty that their wellness journey can continue without interruption - thanks to the handy payments platform”

<h2>Smart social media&nbsp;</h2>Social media has been integral to establishing Nutra Organics’ brand identity “and a way for us to inspire people on their wellness journey,” says Ricki. “Health, nutrition and food should be fun, and we deliver that as best we can on our social platforms.”Ricki adds that well-styled product shots and free, regular recipes as well as health advice and support from the brand’s in-house nutritionist and naturopath perform well for the brand.

The brand says that Afterpay has been an important addition to the business. “Before getting Afterpay we were inundated with requests from our customers to introduce the payment platform.“We quickly noticed the benefits for our customers to ‘buy now, pay later’ because health and wellness can’t (and shouldn’t have to) wait. Our customers now have the added certainty that their wellness journey can continue without interruption - thanks to the handy payments platform,” says Ricki.

<h2>Put people at the centre of the brand</h2>Another key to Nutra Organics’ success? “Love your people,” says Ricki. “They are the ones who make it all happen.”Those people now include 30 staff who help to create more than 100 products, including vegan proteins, collagen beauty, superfood lattes, broths, superfood blends and wholefood bars.The company’s humble beginnings, as well as their relationships with local businesses, means they have always been determined to give back. “Our business-to-business relationships have always been our bread and butter,” says Mark. “They gave us our shot, and we will always nurture our relationships with our wholesale clients.”

<h2>How the brand gives back</h2>This is why philanthropy is one of the company’s core values – and one they take very seriously. Nutra Organics has partnered with a range of charitable organisations with a particular focus on the environment, including the Clean Ocean Foundation, an Australian charity whose aim is to reduce all forms of ocean pollution. They have funded the clean-up of 100 kilometres of Australian coastline, supported the Carbon Neutral Charitable Fund (CNCF) to plant 2,000 trees in Australia, and provided 30,000 meals to Australians in need by partnering with OzHarvest.Following the devastating wildfires earlier this year, the company has also pledged $30,000 to be divided between the New South Wales Rural Fire Service, Red Cross Disaster Recovery and WIRES Wildlife Rescue.

<h2>The business case for giving back</h2>“We include the most natural ingredients we can source in our products. So, on a business level, it makes good sense for us to have a vested interest in preserving our natural surrounds,” says Mark.&nbsp;Adds Ricki: “Philanthropy helps us to remain focused on why we do what we do. It unites us as a company for a common purpose. We see our mission as not just the health and wellness of our community, but as humans helping each other.”And while the creation of sustainable products is more expensive, it’s also, says Mark, something they’re not prepared to compromise on. Their full-size tubs are fully recyclable, made from recycled plastic, are BPA-free and have a long shelf life of 18 months, while their sachets are 100 per cent home compostable.&nbsp;Says Mark: “Moving into compostable packaging has absolutely increased expenses for us. But we are pioneering a movement, and we hope with time, once the industry catches up, the costs and hurdles that come with compostable packaging won’t be so significant.“We know it will eventually inspire other businesses to jump on the bandwagon.”“Giving is fundamental to keeping you grounded as you grow,” says Ricki. “I’d recommend other companies find something they truly believe in and helping to fund it – because you can make a difference.”

All references to any registered trademarks are the property of their respective owners. Afterpay does not endorse or recommend any one particular supplier and the information provided is for educational purposes only.

Nutra Organics went from a small family business to a leader in health and wellness. Learn how giving back played a role in their success on Afterpay Access

Nutra Organics went from a small family business to a leader in health and wellness Learn how giving back played a role in their success on Afterpay Access

Why Giving Back is Good for Business | Afterpay Access

Why giving back is good business for this $15m health food brand

The Lyre’s Spirit Co. founder shares his tips

Know what your customers want. And be prepared to ignore everything you’re told to do. These are just some of the hints that Lyre’s Spirit Co. founder Carl Hartmann has to take your business from an idea from start-up to successWhen multi-award-winning entrepreneur Carl Hartmann talks about the three start-ups he has founded - shipping logistics company Temando, human resources software platform Compono and especially his record-breaking non-alcoholic spirit brand<a href="https://lyres.com.au/" rel="noopener noreferrer" target="_blank">&nbsp;Lyre’s Spirit Co</a>. – you could be forgiven for thinking his success came easy.Not so. “It’s that iceberg analogy,” he says. “Where people only see success at the top of the iceberg, they don’t realise all the structures under the water is where the effort is.”

&nbsp;“Where people only see success at the top of the iceberg, they don’t realise all the structures under the water is where the effort is.”

Hartmann came up with the idea for his first business, Temando, while working at a high street electronics retailer and searching for a solution to calculate shipping pricing. He eventually turned Temando into a global powerhouse that employed hundreds of people in six countries and counted Nike and ASOS as clients, before exiting the business in 2017.

HR tech platform Compono was another lightning-bolt idea; born of Hartmann’s need to add a layer of deep, data-driven intelligence to Temando’s HR decisions, rather than relying on pure gut instinct.&nbsp;And then there’s the staggering success of Lyre’s. Just two years after launch, it’s not only stocked by Dan Murphy’s, Liquorland and BWS, but is on track to have between 50 and 60 dedicated country e-commerce sites and be available in 70 to 80 countries worldwide, by the end of 2021. “That puts us on track to being one of the most ubiquitous Australian-made products – in terms of global distribution – ever,” he says.

"What that told us was that people didn’t just want another non-alcoholic gin. They wanted to be able to make low- and no-alcohol versions of the mixed drinks and cocktails that they knew and loved," says Hartmann.So, Lyre’s launched with a huge range that allowed people to recreate the majority of the world’s top 50 cocktails without alcohol – with varieties like Italian Orange – similar to Campari - or their Apéritif Rosso which is a dupe for vermouth.Each Lyre’s variety is designed to be used exactly the same way you would the original spirit. This was the key, and led to Lyre’s becoming the most awarded non-alcoholic spirit brand in the world. “Our liquids really are our superpower,” says Hartmann.

<h2>Prepare for the relentlessness</h2>Launching and scaling a retail business, or any business, is more work than most people can get their heads around - until they actually do it.“It’s like you’re planning on doing a marathon except you’ve never even gone for a jog before,” Hartmann says. “Add to that you’ll be doing it uphill. And then you’ve got to convince 50 or 100 people to come along with you, and most of them probably haven’t even gone for a walk before.”

Not everyone is built to get to the top of that mountain but it’s worth it for those who do. “You’re going to get some attrition, and you’re probably going to want to give up a few times, just out of sheer exhaustion,” he says, adding that it will get easier.Eventually you’ll get to take off some of your ‘hats’ and put some of your workload onto other people who specialise in the different things you need done. “But just be ready for that journey.”

<h2>Listen to the conventional wisdom. Then upend it</h2>Just before the COVID-19 pandemic shut down international travel, Hartmann was in London on business with Lyre’s when he met with a senior executive from a well-known multinational corporation.&nbsp;Lyre's had just started what Hartmann called “blitz scaling” – getting Lyre’s products into as many countries as possible, as fast as he could. “I’ll never forget it – he kept telling me how crazy we were to be trying to do so many countries concurrently,” remembers Hartmann.&nbsp;In fact, it turned out to be one of the smartest moves they could have made, especially when COVID restrictions hit, something that would have made expanding gradually so much harder.&nbsp;“Conventional consumer wisdom would be to do one country at a time and then launch e-commerce at the end,” he says. “We did everything we were told not to do. We went digital first and we went wide. And now? In some countries we’re uncontested, we’re the only brand in our category so we’re consuming all the oxygen.”

<h2>If you have to sacrifice something, don’t make it your health</h2>&nbsp;Randi Zuckerberg – former director of market development at Facebook and sister to founder Mark – has a theory.&nbsp;Out of what she sees as the five main pillars of a functional life – work, sleep, family, fitness and friends – you get to choose three.&nbsp;Hartmann saw her speak once and considered his own situation.&nbsp;During the launch of his first start-up he managed to tick the work, sleep and friends box, but felt he neglected family and fitness, and that last one is a commitment he never plans to drop again. “I went from being reasonably fit in my 20s to the heaviest and most unfit I’d ever been,” he says of those early years, adding that he reached a point of almost total burnout.&nbsp;Now he’s back to peak fitness – he kitesurfs in his spare time – and realises that if you forgo fitness or sleep, the work, family and friends suffer. “[Being unfit] affects your mental clarity,” he says. “Now if I see someone in my team burning out, I’ll make them put tools down, get some sleep, go for a walk. Sometimes they need to have a compulsory holiday. They come back refreshed and double their output.”

<h2>Bring everyone on board with your vision</h2>&nbsp;A commonality between successful entrepreneurs is that they have big, bold, audacious visions. And for Lyre’s, that vision right now is to be the number one this year by every metric. That means setting goals, breaking them down and measuring them using analysis and data to see where they can improve.&nbsp;“Our entire team from top to bottom has KPIs,” Hartmann says. “We break those KPIs down to smaller, actionable KPIs so there’s accountability from the very top to the lowest level employee, so everyone knows how they’re contributing to the vision.” If something doesn’t work, that’s okay; it’s an opportunity to learn and grow. “It may only take one person to start [a business],” Hartmann says, “But it’s absolutely a team sport to finish.”

Carl Hartmann of Lyre's Spirit Co shares his tips on building three businesses.

Carl Hartmann of Lyre s Spirit Co shares his tips on building three businesses