Key Takeaways:
- Those currently in Australia’s FMCG workforce are contending with a market that has leaner teams, increased internal competition for progression, and employers seeking ‘unicorn’ candidates.
- Due to increasing hiring pressures, many FMCG candidates are now expecting stability, value-alignment, and leadership, rather than salary alone, emphasising the importance of a strong EVP.
- Workplaces will require greater absorptive capacity to integrate and diffuse existing technologies and skills, as well as to develop new ones, as part of emerging manufacturing skills ecosystems.
- FMCG organisations need to focus on improving retention, plan proactively for retirements, provide on-the-job training, and work with specialised recruitment partners to adapt to changing workforce trends in the industry.
What Are the Workforce Shifts Expected to Impact Australia’s FMCG and Food Manufacturing Industry Over the Coming Years?
Australia’s food and grocery manufacturing sector employs around 300,000 people, marked by a demand anticipated to outpace workforce supply by 2035, particularly across occupations such as packers, food and drink factory workers, forklift drivers, purchasing and supply logistics clerks, and manufacturing production managers.
The factors influencing FMCG workforce trends are mixed. According to The Australian Food and Grocery Council’s State of the Industry 2024-25 report, turnover climbed to $182.6bn in 2024-25, with exports up 17.4% to $52.6bn. However, rising operating costs, supply chain disruption, and higher energy and commodity prices are balancing out future workforce trends.
In essence, Australia’s FMCG and food manufacturing industry is proceeding with caution, meaning that the workforce is in a unique position of being highly coveted, especially if they have the skill sets required to provide businesses with opportunities during a period of increased pressure.
On the other hand, however, those currently in Australia’s FMCG workforce are also contending with a market that has leaner teams, increased internal competition for progression, and employers who seek ‘unicorn’ candidates who are strategic, experienced operators with category depth and omnichannel exposure.
Why are Shortages in the Australian FMCG Workforce Becoming a Long-Term Structural Challenge?
As a result of cost pressures, consumer behaviour shifts, and structural changes, senior sales roles in the FMCG workforce are undergoing a significant evolution, with increased responsibilities that create greater internal competition for progression, particularly within organisations that have slowed hiring due to increased operating costs.
On the opposite end are ‘unicorn’ candidates: experienced operators who can deliver immediate results due to their tenure, category depth, and omnichannel exposure. These candidates are in increasingly high demand, in part due to the stripped-back approach of organisations, as securing one multi-talented candidate can provide the opportunities that several high-quality hires could for a lower overall cost.
The top five roles in demand are:
- Category managers
- National account managers (grocery)
- Foodservice specialists
- E-comm customer managers
- Revenue growth managers
These FMCG workforce shortages aren’t a short-term or temporary issue; they’re a structural challenge. Employers are having to quickly adapt their EVP and consultative approach to account for these changes and find talent that keeps them ahead of the curve.
Candidates can afford to proceed with caution, weighing up their goals and values, particularly those in senior positions. Given that Australia’s FMCG industry has had periods of volatility, it’s unsurprising that many candidates are more concerned with stability, value-alignment, and leadership than just salary alone. This is a shift employers will have to account for to keep pace.
The Growing Importance of Skills Development, Training, and Internal Mobility for the FMCG Workforce
We’ve spoken previously about how to build a talent pipeline that supports future operational demands in Australian food & FMCG manufacturing, and much of this is still applicable: develop existing talent through training, upskilling, and creating clear progression pathways, rather than siloing them into traditional roles.
In the discussion paper Australia’s Manufacturing Future, it was noted that workplaces will require greater absorptive capacity to integrate and diffuse existing technologies and skills, as well as to develop new ones, as part of emerging manufacturing skills ecosystems. It was also highlighted that managers and the workforce needed not just specialised competencies but also “boundary-crossing” skills in teamwork, communication, creative thinking and problem-solving.
Corporate culture is the key, according to a study of the world’s biggest R&D spenders, with poor strategic alignment and unsupportive cultures resulting in significant underperformance compared to competitors.
It’s never been more essential for FMCG & food manufacturing organisations to focus on continuous skill development for employees to improve the overall workforce, equally focusing on upskilling to meet new technological demands alongside teamwork and communication skills, and wider occupational skills.
If current employees feel undervalued, organisations may struggle to retain them at a time when hiring new talent is more costly and often difficult to navigate. This also has a knock-on impact on wider retention and turnover, as if roles are only motivated by salary, employees both new and old will simply seek higher salaries elsewhere.
Australian FMCG & food manufacturing employers need to go beyond salaries and emphasise the learning and development opportunities and progression available.
The Rise of Regional Manufacturing Hubs (and What It Means for Talent Attraction)
In many regional areas, manufacturing is the lifeblood of communities. 85% of food production workers sit in regional Australia, and a third of the manufacturing workforce is in regional areas. This regional emphasis on the Australian FMCG workforce can also split further in subsectors, with the regional share at about 48% of meat, 47% of sugar and confectionery, and 45% of beverage manufacturing employees.
Though these regional hubs are seeing increased investment, 12 manufacturing-critical occupations are on the national shortage list, with a projected demand for a further 91,300 skilled workers by 2035.
Additionally, reports have indicated that 10% of occupations in the food and grocery manufacturing sector currently face workforce shortages, particularly among technicians, trades, machinery operators and drivers. Ageing and retention challenges are key drivers of these workforce shortages, influencing talent attraction for FMCG and food manufacturing employers.
How are FMCG & Food Manufacturing Employee Expectations Evolving?
With such a tumultuous period ahead for the FMCG workforce, those already in or looking to enter the industry face a market that needs them now more than ever. As employers look to attract and retain workers, employee expectations are likely to focus on factors alongside salary expectations when considering a role:
- Clearly outlined progression pathways
- Learning and development opportunities
- Clarity on the role of technology (e.g., automation that boosts efficiency and frees up time for more engaging work rather than just repetitive tasks, as opposed to the threat of automation replacing employees)
- Wellbeing and flexibility
What Can FMCG Employers Do to Build a More Resilient Workforce for the Future?
- Fix retention before recruitment: More training places alone aren’t enough; it’s more important to focus on job quality, shift design, supervision, working conditions, and career progression.
- Plan proactively for retirements now: With 40% of the workforce in some occupations expected to leave in a decade, succession planning and knowledge transfer are essential to avoid further talent gaps.
- Provide on-the-job training: The AFGC says on-the-job training is critical as equipment becomes more bespoke and technology evolves, which also ties into attraction and retention.
- Partner with a specialist recruitment agency: A strategic partner can secure the most specialist talent and identify gaps before they become critical, all aligned to the current market challenges.
Why Choose Evolve as Your Specialist FMCG Recruitment Partner?
At Evolve, our consultants are degree-qualified scientists with real industry experience, combining their industry knowledge with their understanding of the technical competencies to secure the best FMCG talent.
From our offices across Australia, our team provides on-the-ground support backed by a global framework to give you flexible FMCG recruitment solutions. Whether you’re looking to fill skill or talent gaps with temporary hires, management permanent hires, or an executive search, we’ll provide the dedicated and specialist support you need.
Contact our team today to secure candidates at the forefront of workforce changes and innovation in the industry.
