Key Takeaways
- Around 40% of Australia’s food and grocery manufacturing workforce is expected to retire in the next decade, alongside a food supply chain that is already 172,000 workers short, creating a structural workforce shortage for jobs in food manufacturing.
- Technical and trade roles, in particular in FMCG, are experiencing a 61% recruitment difficulty rate due to the specific skill requirements and longer training lead times.
- Sustainability and traceability are creating new job categories (e.g., ESG managers, sustainability reporting analysts) and prioritised skillsets which are in high demand, driven by the Parliament of Australia’s Food for Thought report.
- Hybrid, cross-functional roles are rising in popularity as businesses continue to adapt to the technological advances of the industry, particularly in areas like automation and data analysis.
- Steady pipeline building is more future-proof than reactive recruitment, as more businesses attempt to forecast capability gaps 12-24 months ahead and intentionally build hybrid roles or upskill existing employees to meet regulatory and operational demands.
The Australian food and FMCG manufacturing sectors are a significant contributor to the national economy, accounting for 2% of total employment. Yet, demand is quickly outpacing the supply, causing significant skills gaps across roles at a time when an estimated 40% of the current food and grocery manufacturing workforce is expected to leave within the decade due to retirement.
It’s estimated that the food supply chain in Australia is 172,000 workers short, causing a reduced capacity in the food and FMCG industry’s overall workforce. Food industry recruitment is changing, and companies in the food and FMCG sectors need to understand the factors influencing these changes to overcome current challenges.
The Growing Skills Gap in Australian Food and FMCG
The food and FMCG industry has stable employment, but roles in Quality Assurance (QA), maintenance, and data-driven manufacturing are proving difficult to fill due to skill scarcity in these areas. Technical and trade roles in particular are experiencing a 61% recruitment difficulty rate due to the specific skill requirements and longer training lead times.
Though FMCG manufacturing is experiencing a slow projected employment growth of 1.6%, job opportunities are still prevalent in high-demand areas like warehouse operations, maintenance, and QA.
High competition to secure the necessary talent is driving significant change in the areas in which FMCG businesses are investing. Automation, direct-to-consumer logistics, and carbon-neutral production practices are all key areas of investment. Subsequently, professionals skilled in sustainability, product development, and data-driven manufacturing are in high demand due to scarcity in the current market.
Multiple reports are calling for change in the industry to address skills gaps, including:
- AFGC’s ‘Sustaining Australia: Food and Grocery Manufacturing 2030’: Outlined the need for a skills audit to better understand the gap between the current capabilities of the sector and the needs of a more automated, digitalised food and grocery manufacturing sector, alongside a sector-wide training centre.
- Parliament of Australia’s ‘Food for Thought’: Noted the need for attracting and retaining skilled workers, suggesting enhanced education and training programmes, greater diversity and inclusion, and collaboration between industry and academia to ensure the talent pipeline meets the evolving needs for food and beverage manufacturers.
- Manufacturing Alliance’s ‘Manufacturing Workforce Plan’: Explained the gap between technology adoption and workforce readiness, identifying emerging skills in areas such as big data, cloud computing, digital design, Internet of Things (IoT), advanced materials, additive manufacturing, robotics, and electronics.
How Sustainability and Traceability are Restructuring Hiring Needs in the Australian Food Industry
Sustainability efforts are no longer a ‘nice to have’, so much as an essential operational function within the Australian food industry, impacting the skills expected from food and FMCG talent. The Parliament of Australia’s Food for Thought report notes that specialist skills around sustainability and environmental awareness will be critical in helping to overcome the challenges in the FMCG industry:
- Sustainable agriculture
- Waste reduction
- Eco-friendly manufacturing practices
- AI, automation, digitisation (to promote sustainability)
Additionally, the AFGC’s sustainability agenda covers greenhouse gas emissions, sustainable packaging design, resource efficiency, food waste reduction, and traceability and transparency of products and materials. Each area requires a role to own it, which in turn increases demand for new roles in the industry, such as:
- ESG managers
- Sustainability reporting analysts
- Packaging compliance leads
- Circular economy specialists
As digitised traceability climbs the agenda as a way to track paddock-to-plate, people with hybrid skillsets that blend data literacy and operational know-how, or cross-functional skillsets, will be in high demand in the FMCG industry.
Why Traditional Manufacturing Recruitment Models No Longer Work
Food manufacturing is Australia’s largest employing manufacturing sector, accounting for a significant 30% of manufacturing jobs and set to grow even further, with around 34,000 jobs being added over the last decade. However, with this growth has also come declining profitability due to rising commodities, energy, and shipping costs.
This context is important because it has set the stage for investment in Australia’s FMCG industry to focus more on enabling clean energy and a circular economy transition, which in turn has put greater emphasis on digital technologies to catalyse this shift.
Traditional models are being phased out in favour of automation-first thinking, which aims to reduce labour-intensive, repetitive tasks and train workers from manual roles to more technical positions (e.g., line technicians).
In short, traditional manufacturing recruitment no longer works because it doesn’t account for the existing workforce adapting to this technological shift or for newer food and FMCG talent evolving to meet current demands.
The Rise of Cross-Functional and Hybrid Roles in FMCG
Challenges in the Australian food industry have driven a shift from traditional FMCG jobs to cross-functional and hybrid roles.
In the wider Australian workforce, Gen AI is starting to augment, not replace, work, which is increasing demand for digital literacy and human skills that blend roles rather than keep them siloed. Additionally, IoT technology is being adopted more readily, with 30% of Australian manufacturers having implemented industrial IoT at scale.
One outcome of this significant manufacturing evolution is that disciplines are being blended: a QA professional who can interpret automated sensor data, a production operator who can read dashboards, or a microbiologist who understands the automation running alongside their lab work.
Businesses such as Queensland-based Homestyle Bake implemented AI systems and 19 robots for automated end-of-line baking, packaging, and quality control to alleviate workforce shortages. Rather than replacing jobs, the automation has been implemented as a means to upskill existing employees and act as a pathway to advanced manufacturing roles.
These cross-functional training programmes will undoubtedly impact jobs in FMCG as workforce flexibility becomes a greater priority for employers. There’s a strong business case, too — productivity can increase by at least 30% when employees are ready to adopt digital technologies and consider a more proactive, tech-driven strategy.
How to Build a Talent Pipeline That Supports Future Regulatory and Operational Demands
Australia’s food and FMCG businesses need to build talent pipelines around skills, rather than traditional job titles, to meet the demand for cross-functional and hybrid skillsets.
Given the anticipated gaps due to an ageing workforce, it’s important to focus on being proactive with your talent pipeline, rather than reactive:
- Try to forecast capability gaps 12-24 months ahead, particularly in production, purchasing & supply, procurement, engineering, and compliance.
- Build hybrid roles that combine operational and technical needs (e.g., production and data, supply chain and sustainability, quality and traceability), to keep decisions connected across functions and meet the demands of a modern FMCG business.
- Develop existing talent through training and upskilling, rather than siloing employees into traditional roles, creating clear progression pathways that act as a competitive advantage.
- Consider the role of technology in making roles more appealing to potential candidates ahead of potential competitors, such as implementing automation where possible to boost efficiency and free up time for engaging work rather than repetitive tasks.
It’s also essential for food and FMCG businesses to understand how tightening Australian food standards (FSANZ updates, sustainability reporting obligations) will influence areas like traceability, allergen management, and food safety reporting.
Why Do Manufacturers Partner with Evolve to Secure the Next Generation of Scientific and Technical Talent?
At Evolve Scientific, our consultants are degree-qualified scientists with real industry experience, combining their industry knowledge with their understanding of the technical competencies to find the best scientific and technical talent.
Our team provides on-the-ground support from our offices in Australia, backed by a global framework, to give you flexible FMCG recruitment solutions. Whether you’re looking to secure temporary hires, management permanent hires, or for an executive search, as your food manufacturing recruitment agency, we’ll provide the dedicated support you need.
We proudly partner with Australia’s FMCG and manufacturing businesses to find candidates that are at the forefront of technological innovation and the next stage of the food industry — contact our team today for further insights into the evolving next generation of scientific and technical talent and finding your ideal candidates.
Talent Bottlenecks in the Australian FMCG Industry: Frequently Asked Questions
What are the current trends in the Australian food and FMCG industry affecting talent acquisition?
Australia’s food and FMCG industry is facing a talent and skills shortage due to an ageing workforce, rising automation investment, and growing demand for hybrid skillsets that combine areas such as QA, digital literacy, and data analysis with traditional skillsets.
How is the skills gap in food manufacturing impacting recruitment strategies?
The skills gap in food manufacturing is pushing recruitment strategies away from traditional models and towards building hybrid capabilities internally, since QA, automation, and data skills are scarce across industries, to build talent pipelines (rather than competing for the same, small pool of experienced candidates).
What types of new roles are emerging in the food and FMCG sectors?
New roles emerging in the food and FMCG sectors include hybrid positions that blend traditional disciplines with digital and sustainability skills (e.g., production operators fluent in data systems), and new roles relating to sustainability and traceability requirements (ESG managers and circular economy specialists).
How can companies ensure they are attracting sustainable food production talent?
Companies can attract sustainable food production talent by treating sustainability skills as a separate, distinct career path with clear progression pathways to appeal to candidates seeking purpose-driven careers, rather than as a compliance box to tick.
How can Evolve help overcome recruitment challenges in the food and FMCG sector?
Evolve Scientific’s consultants are degree-qualified scientists that understand the skillsets and technical competencies required for food and FMCG roles, whether you need entry-level or executive leadership candidates.
