The latest data from inventory management software company, Unleashed, has shown export-focused Australian food and beverage manufacturers are maintaining significantly less excess stock, as the United States' controversial tariff policy unsettles the global market.
The Unleashed Manufacturing Health Index analyses 1425 manufacturers across 12 sub-sectors in Australia, New Zealand, and the UK, to assess the overall health of the sector. The Q4 2024 report draws on data from every purchase, sale and stock movement made by each business in the study between Q1 2018 and Q4 2024.
The latest Manufacturing Report has shown Australian businesses are actively reducing the amount of excess stock held, dropping 60 per cent compared to the previous quarter.
In the beverage industry excess stock dropped -49.25 per cent, to an average of $29,633. In the food sector excess stock dropped 10.57 per cent to an average of $176,588.
Adding to the already tough environment was a drop in average sales revenue, down -14.73 per cent in the beverage manufacturing industry, and down a concerning -26.91 per cent in food manufacturing.
Unleashed head of product, Jarrod Adam, said the report indicates Australian food and beverage manufacturers are responding to global pressures by carefully managing stock levels.
“Aussie food and beverage manufacturers are worried about getting caught in the tariff storm without an umbrella. The benefit of China removing its tariffs on Australian wine late last year may be negated by issues created by US tariffs,” Adam said.
“Clearly, many Australian firms realise this and have been actively working to reduce their stock levels to avoid overextending themselves, with excess inventory across all industries dropping 60 per cent in Q4.
“The drop in sales revenue makes it even more important for businesses to monitor excess stock as with lower sales and increasing costs potentially on the horizon, managing expenses has become crucial – especially in the fast-turnover food and beverage industries,” he said.

Controlling excess stock
The food sector is accustomed to fast turnarounds, not holding stock over what the industry predicts it can sell, so food manufacturers only saw a -10.57 per cent drop in excess stock levels in Q4, compared to the all-industry average of -60 per cent.
However, the beverage industry had a significant drop in excess stock, of -49.25 per cent.
“The dropping overstock levels in Australian food and beverage points to businesses carefully monitoring tensions in global trade, and making sure that they are not overexposed to changes in export trends. Over the previous five years Aussie manufacturers have learned to stay afloat during global upheaval. However, unlike the insecure supply chains of the early 2020s when companies stockpiled, we may see them head the other direction in 2025,” said Adam.
Wiggle room from strong sales
Despite an average drop-off in revenue in Q4 across all Australian manufacturing industries, the total revenue for 2024 was still up on 2023 for beverages, with the average firms selling $2.3 million for the year vs 2023's $1.695 million. However food was slightly down, at $2.269 million, compared to $2.4 million.

This modest rise comes off the back of Q3 2024, one of the best months of sales revenue, with an average of $710,412 in sales per firm, since Unleashed has been capturing industry data in Australia.
Food on the other hand saw a modest drop of -1.94 per cent in sales revenue to an average of $567,354.20, down from a 7.24 per cent rise the previous quarter.
“Building up to this recent uncertainty in global trade, AU food and beverage manufacturers experienced strong and stable sales growth. This has given local businesses an opportunity to hunker down and prepare for potential uncertainty caused by tariffs,” Adam said.
Revenue flattens out
Across the wider manufacturing industry, the overall rising trend in sales revenue has now flattened off with a significant drop of -23 per cent quarter on quarter, down from a rise of 4.47 per cent in the previous quarter.
Viewed as a yearly total, average sales revenue for 2024 was $2.127 million, marginally higher than 2023’s $2.122 million.
Comparing Q4 2024 to Q4 in 2023, the average Australian SME manufacturer brought in 16 per cent less revenue in Q4 2024 than in Q4 2023 – down from $598,059 to $500,590.
All sectors recorded a drop in sales in Q4 with the exception of Sport, Entertainment & Recreation manufacturers, which lifted sales 30.7 per cent.