October 28, 2025 – Numerous factors influence food and beverage trends and consumer preferences across 39 different categories in Australia. Key drivers, such as taste, cost, and health, greatly impact consumer behavior. From beverages and everyday staples to meal preparation and snacks, Innova’s report, “Category Growth in Australia,” examines the latest consumer demands and values in the Australian market.
Global Forced Impact Australian Consumer Trends
Various global factors influence Australian consumers. The environment remains the top global issue for consumers around the world, including Australia. As climate change continues to be a major concern, its impact on health, the economy, and food security are being felt to an even greater extent. Food trends in Australia reveal that health and well-being are other top concerns for consumers, such as mental health issues, rising obesity, and aging populations. Cumulatively, these issues strain global healthcare systems. Furthermore, economic uncertainty is another key challenge for consumers.
Key Drivers of Consumer Behavior
Food trends in Australia show that across categories, taste and cost remain the most influential factors influencing purchasing behavior. Health priorities are also impacting consumer decisions, such as the demand for products with high protein and fiber content, as well as seeking food options with functional ingredients or reduced sugars and fats. Australian consumers also demonstrate a strong preference for authenticity, including real and natural ingredients. Locally sourced and traditionally crafted are also key claims being reflected across categories that reflect growing desires for transparency. Finally, evolving lifestyles and preferences are propelling interest in novelty and variety. Indulgence remains important, as consumers are still interested in balancing health and enjoyment.
Beverage Trends in the Australian Market
Amid rising costs and health concerns with alcoholic beverages, Australians are choosing alternative, non-alcoholic beverage options. When it comes to soft drinks, clean label and health-conscious claims drive consumer preferences, and bottled water is the top choice for consumers. In the soft drink category, no artificial flavors or colors is one of the top claims, followed by real ingredients and sugar reduction. Taste, flavor, and cost are also key factors in soft drink choices, cited by over 40% of consumers. Within the hot drink category, consumers in Australia look for natural or premium ingredients and traditional preparation claims. For hot coffees, cost is the top attribute influencing consumption, while freshness is the leading factor for teas.
Consumer Preferences for Everyday Staples
Regarding bread and breakfast cereal choices, Australian consumers prioritize healthy ingredients. According to Innova’s consumer trends research, the purchasing penetration for bread and bread products is 79%, which over-indexes the global average of 77%. Freshness, cost, and flavor are significant factors in this category. Consumer purchases of breakfast cereals are also above the global average, with reduced sugar and high sources of fiber or protein claims being the most sought after. Across most categories of dairy products, Australian consumers favor taste, flavor, and cost as top considerations. For meats and fish, consumers prioritize affordability, freshness, and flavor benefits, with locally sourced and protein value claims adding additional value.
Meal Preparation Ingredient Trends
Across the meal preparation category, real ingredients and natural claims are highly valued and exceed the global average. Over 50% of Australian consumers cite taste and cost as leading considerations, and real ingredients, no artificial flavors or colors, and traditionally crafted are favored. In savory and sweet spreads, clean label claims are important, and for ready meals, convenience, cost, and flavor shape consumer behavior the most. Additionally, evolving lifestyles and consumer preferences for variety are driving the growth of most meal preparation categories.
What’s Driving Snacks & Treats in Australia?
Purchases of snacks and treats in Australia are largely driven by taste, cost, and brand influence. Food trends in Australia show that more than half of consumers across all snacks and treats categories consider taste and cost as the primary attributes. However, brand selection is also viewed as a decisive factor. Except for chocolate, Australia over-indexes the global average for snacks and treats, and consumers prefer locally sourced or produced.
Plant-Based and Special Diets
Food trends in Australia show that health benefits and evolving lifestyle needs have contributed to the rise in plant-based food consumption. Claims, such as plant-based, organic, and real ingredients, strongly influence purchasing decisions for plant-based foods. A growing focus on exercise habits has also influenced the increase in functional health claims and ingredients like protein. Furthermore, Australian consumers value claims that are scientifically proven.
What’s Next for Australian Food and Beverage Trends?
Brands can look to offer affordable formats that maintain flavor and freshness in everyday staples, such as bread, dairy, and breakfast cereals. Another innovation opportunity is to expand functional and nutrient-rich product ranges, such as Greek yogurt with added vitamin D. Brands can also introduce limited edition or experiential formats that balance enjoyment with health. For instance, a plant-based ice cream with native Australian flavors would capture consumer attention by offering novelty and indulgence.
This article is based on Innova’s Category Growth Drivers in Australia report. This report is available to purchase or with an Innova Reports subscription. Reach out to find out more.