Convenience Stores in Australia: Market Size, Businesses & Forecast 2026

The convenience store industry in Australia comprises retail outlets that provide immediate-consumption goods, food, and groceries, often integrated with fuel retailing networks. The sector is undergoing a significant transition driven by a structural decline in its traditional tobacco category, which dropped 28.8% in value in 2025 alone. To combat this, the channel is increasingly focusing on fresh foodservice and premium beverages to capture on-the-go consumer spending, with total channel value reaching 9.88 billion AUD in 2025 according to the Australasian Association of Convenience Stores (AACS).

Industry snapshot

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What does the Convenience Stores in Australia industry cover?

The convenience store industry in Australia covers retail businesses primarily engaged in selling a broad mix of everyday grocery items, convenience foods, and packaged beverages. These stores generally feature extended operating hours and are designed for rapid, small-volume transactions, serving consumers looking for immediate-use purchases. Under national statistical structures, convenience stores are categorised alongside larger grocery setups unless their primary source of revenue shifts explicitly to fuel sales or hot cooked takeaway foods.

• •Primary activities include the retail of milk, bread, snack foods, toiletries, and newspapers as defined under ANZSIC Class 4110.
• •Excludes establishments that derive the majority of their income from cooked takeaway meals (ANZSIC Class 4512) or primary fuel retailing (ANZSIC Class 4000).
• •Small business benchmarks defined by the Australian Taxation Office (ATO) for 2023-24 outline an average cost of sales between 65% and 74% of total turnover depending on business size.

Who operates in the industry and how is it structured?

The Australian convenience ecosystem is heavily corporate-led and concentrated around major fuel retailing networks and major independent banner groups. Over the years, the market has seen extensive consolidation as historical mechanic-and-fuel stations transitioned into sophisticated retail hubs combining convenience products with co-located services. Major operators manage extensive corporate networks, though independent owner-operators and franchised systems also retain a footprint under unified buying banners.

• •The total convenience retail physical footprint across Australia reached nearly 7,000 active operational sites by 2023.
• •Major structural realignment has seen traditional retail giants divest or partner directly with energy distributors to capture convenience spend.
• •Operational networks are increasingly centered on co-locating with fast-food brands, drive-through coffee, and ancillary services like Australia Post parcel collection.

What drives demand in the industry?

Consumer demand within the Australian convenience sector is intensely dictated by lifestyle factors such as workforce mobility, convenience-seeking behaviors, and urbanization. However, substantial shifts in product mix are redefining value drivers, particularly as traditional tobacco revenue declines rapidly while alternative categories expand. Growth is currently propelled by immediate-consumption items, particularly high-margin foods and functional beverages that cater to time-poor commuters.

• •Tobacco sales previously accounted for over 40% of the channel's total sales in 2020, but plummeted to represent a 19.6% market share by mid-2025.
• •Packaged beverages have become a principal category driver, expanding to account for 32.9% of all channel sales in 2025.
• •Energy drinks have emerged as a dominant sub-category, contributing roughly 72% of the total growth in beverage sales during 2025.

Who are the notable companies in the industry?

The competitive landscape in Australia is defined by major vertically integrated energy retailers and specialized corporate networks that command significant market share. Competition is intense, focusing not only on fuel pricing but increasingly on the quality, variety, and execution of the in-store food and beverage menu. Corporate activities have recently reshaped ownership structures through high-value acquisitions aimed at building large-scale, multi-state convenience networks.

• •Ampol Limited is a dominant player in the landscape, recording historical record earnings before interest, tax, depreciation, and amortisation (EBITDA) of 1.8 billion AUD in its annual reporting.
• •Viva Energy Group Limited significantly expanded its retail footprint by acquiring the Coles Express network and entering into a 1.15 billion AUD agreement to buy the OTR Group (On The Run).
• •BP Australia Pty Ltd and Chevron Australia (operating under the Caltex brand) represent major multinational corporations with substantial localized retail networks.
• •EG Australia (part of EG Group) operates a significant network of hundreds of converted site locations across multiple states.

What are the recent trends and outlook?

Faced with a challenging macroeconomic climate and changing consumer habits, the industry is pivoting toward an updated retail identity centered on foodservice. While top-line revenue has faced pressure due to the contraction of the tobacco segment, underlying performance in core convenience lines remains positive. Future profitability is heavily tied to the successful rollout of premium, high-value prepared meals and localized format innovations.

• •Total convenience channel value declined 3.9% to 9.88 billion AUD in 2025 due to a 750 million AUD single-year drop in tobacco value.
• •Excluding the tobacco category, underlying convenience store sales increased by 4.5% in 2025, demonstrating strong core resilience.
• •Foodservice options, including prepared sandwiches and meals, rose 6.6% in 2025 as operators expanded high-value meal ranges.

How is the industry regulated?

Operators within Australia must adhere to a complex framework of federal, state, and local government compliance standards covering retailing practices, safety, and employment. The sale of controlled substances, notably tobacco and nicotine vaping products, is subjected to strict public health legislative frameworks that continue to tighten across all states. Additionally, retail labor standards and operational zoning laws form a significant portion of the ongoing compliance overhead for corporate networks.

• •Retailers operate under the strict modern award structures governed by the Fair Work Ombudsman regarding retail wages and penalty rates.
• •Strict state-level public health regulations govern the display, licensing, and sale of tobacco products, contributing directly to the structural contraction of the category.
• •Food safety standards enforced by Food Standards Australia New Zealand (FSANZ) strictly regulate store locations handling fresh, prepared, or hot dispensed food items.

Government, statistical and trade sources used for this Claight analysis.

• Australasian Association of Convenience Stores State of the Industry Report 2025 ·
• Australasian Association of Convenience Stores Mid-Year Report 2025 ·
• Australian Bureau of Statistics ANZSIC 2006 (Revision 1.0) ·
• Australian Taxation Office Small Business Benchmarks 2023-24 ·
• Public Company Financial Disclosures (Ampol Limited, Viva Energy Group Limited)