Whether it’s your morning cereal, toothpaste, or that Friday night snack, Consumer Packaged Goods (CPG) are a staple in every Australian household. But in 2025, what’s in your shopping basket is being shaped by global supply chains, changing policies, and fresh innovation. Let’s unpack what’s happening in the CPG world, and how it affects your hip pocket.
The State of CPG in Australia: Price, Policy, and Pantry
With Australia’s inflation rate stabilising at 3.1% as of March 2025, the CPG sector is still feeling the aftershocks of pandemic-era disruptions and recent supply chain recalibrations. Supermarkets are passing on both cost increases and, in some cases, cost reductions as the market recalibrates. According to the Australian Bureau of Statistics, grocery prices for staples like milk and bread have moderated, while processed and imported goods remain volatile.
- Supermarket Competition Heats Up: Woolworths, Coles, and Aldi are locked in a price war, with Woolworths launching its “Everyday Value” line to rival Aldi’s low-cost offerings.
- New Labelling Laws: From July 2025, Australia’s new front-of-pack labelling standards require clearer nutritional and environmental impact data, influencing both consumer choice and manufacturer transparency.
- Focus on Local: With state governments offering incentives for locally produced goods, you’ll notice more “Australian Made” badges on your shelves.
Innovation and Sustainability: The New CPG Battleground
CPG companies are investing in sustainable packaging and plant-based alternatives to appeal to eco-conscious shoppers. Major brands like Goodman Fielder and Nestlé have pledged to reduce virgin plastic use by 30% by 2026. Meanwhile, the range of meat-free and allergen-friendly products continues to expand, especially as Gen Z and Millennial consumers demand both health and environmental responsibility.
- Recyclable and Compostable Packaging: Woolworths now offers home-compostable packaging for select private-label goods, a move rapidly being followed by competitors.
- Plant-Based Boom: Australia’s plant-based CPG market grew 14% in the past year, with brands like v2food and Fable Foods launching new products in both major chains and independents.
- Tech-Savvy Shopping: Digital shelf tags, AI-driven restocking, and personalised in-app offers are making CPG purchases smarter and more responsive to consumer needs.
Smart Strategies for Consumers: How to Save in 2025
With prices still unpredictable for some CPG categories, savvy shopping is essential. Here’s how Australians are stretching their dollars further this year:
- Loyalty Programs: Major supermarket loyalty programs are offering more cash-back and instant savings on CPG staples. Check your Flybuys and Everyday Rewards for tailored discounts.
- Bulk Buying and Private Labels: Bulk packs and supermarket-branded goods often beat name brands for value—especially for non-perishables.
- Comparing Unit Prices: With new front-of-pack regulations, comparing price per 100g or per litre is easier than ever. Don’t be fooled by flashy packaging—check the unit price.
- Supporting Local Brands: Locally made products can be less exposed to global supply shocks, and new incentives mean they’re often competitively priced.
Looking Ahead: The CPG Landscape Beyond 2025
Australians can expect continued innovation in packaging, more transparent labelling, and a sharper focus on healthy, sustainable products. As CPG companies and retailers adapt to policy and consumer demands, your choices at the checkout are set to expand. Whether you prioritise price, sustainability, or local origin, 2025 is the year to shop smarter and make your grocery dollars go further.
