Australia’s food and beverage sector is seeing a steady flow of capital investment across energy, automation, processing and logistics infrastructure in 2026 – a signal of confidence in long-term demand, but also a response to rising operational pressures. At the same time, geopolitical tensions affecting key shipping routes are adding fresh uncertainty to global supply chains, reinforcing the importance of local manufacturing resilience and secure logistics capability.
According to the Australian Food and Grocery Council’s Towards 2030 snapshot, the sector has maintained growth through a turbulent decade, but that growth has come with shrinking margins, rising input costs, and ongoing investment gaps. In this environment, much of today’s capital spend is as much about resilience and efficiency as it is about expansion.
Here's an overview of where capital is being deployed across the sector to date in 2026, as reported by PKN's stablemate Food & Drink Business.
Energy transition moves onsite
Cargill has commissioned a 2.58MW solar array at its Newcastle oilseed crush plant, its first large-scale renewable energy project in Australia.
The system will generate more than 4200MWh annually and cut emissions by around 2700 tonnes of CO₂, while also reducing exposure to volatile energy markets. The investment highlights a growing trend: manufacturers bringing energy generation in-house to manage cost and supply risk.
Read more here.
Premiumisation drives process innovation
Treasury Wine Estates has opened a $15 million low- and no-alcohol wine facility in the Barossa Valley, signalling the next phase of innovation in the fast-growing NoLo segment.
The site incorporates customised dealcoholisation technology designed to retain flavour and aroma – addressing one of the category’s biggest barriers to adoption. The move reflects how capital investment is increasingly tied to product innovation and shifting consumer preferences, rather than just capacity expansion.
Read more here.
Cold chain capacity ramps up
In Melbourne, Hale Capital’s 27,000sqm “Adapt” cold storage development is being brought to market by by JLL and CBRE amid critical shortages in temperature-controlled logistics infrastructure.
With near-zero vacancy rates in existing facilities and growing demand from food and pharma sectors, the project points to a structural gap in Australia’s cold chain. Nationally, capacity per capita still lags global benchmarks, reinforcing the need for continued investment in this space.
Read more here.
Circular energy precincts gain traction
Queensland-based producer Kalfresh is progressing its $291 million Scenic Rim Agricultural Industrial Precinct, backed by an $80 million investment from QIC and Wollemi Capital.
The project will integrate food production with a bioenergy facility, converting agricultural waste into renewable gas, fertiliser, and power for up to 31,000 homes. It represents one of the most ambitious examples of circular manufacturing in Australia – linking processing, energy and waste streams in a single precinct.
Read more here.
Government funding backs bioenergy scale-up
In New South Wales, the government has committed $20 million to Optimal Renewable Gas’s Griffith Biohub, part of a broader $480 million Net Zero Manufacturing Initiative.
The facility will process 100,000 tonnes of organic waste annually to produce biomethane, supporting industrial energy needs and reducing reliance on fossil fuels. Public funding is playing an increasingly important role in unlocking large-scale infrastructure investment, particularly in decarbonisation.
Read more here.
Export infrastructure strengthens supply chains
In South Australia, Lineage and Flinders Port Holdings are developing a DAFF-accredited cold storage facility at Edinburgh Parks, enabling direct export of fruit from the state.
By eliminating the need to route produce via Victoria, the facility is expected to cut transport costs by up to 20 per cent and improve time to market. The investment highlights the role of infrastructure in boosting export competitiveness – a key challenge identified in the AFGC report.
Read more here.
Automation reshapes distribution networks
Aldi has secured approval for a $1 billion automated distribution centre in Western Sydney, alongside a second major ADC project in Melbourne.
Designed with high-bay warehousing and up to 80 per cent automation, the facilities will transform national supply chain operations, improving efficiency and throughput while reducing labour intensity. These projects underscore the shift toward highly automated logistics environments in food retail.
Read more here.
Capacity and resilience in staple production
George Weston Foods has completed a $130 million upgrade of its Tip Top bakery in Western Australia, doubling production capacity to 8350 loaves per hour.
The redevelopment follows a fire that disrupted supply, and the new facility is designed to ensure consistent local production while improving safety, automation and energy efficiency. It’s a reminder that investment is often driven by the need to secure supply continuity as much as growth.
Read more here
Investment with intent
Taken together, these projects point to a sector investing across four key fronts – energy resilience, automation, supply chain infrastructure, and product innovation.
Yet the underlying economics remain challenging. As the AFGC highlights, revenue growth has been accompanied by declining margins, with rising input costs and limited pricing flexibility continuing to weigh on profitability.
For machinery and technology suppliers, this is where the opportunity sits. Investment is still flowing, but it is increasingly targeted – prioritising efficiency gains, energy security, and systems that can deliver measurable returns.
In practical terms, the current wave of projects is less about expansion for its own sake, and more about building manufacturing operations that can withstand cost volatility, supply chain disruption, and the demands of a lower-carbon future.
