Australia Ammunition Market Forecast Trends - Market Size, Share, Growth Analysis Report (2025-2034)

Australia Ammunition Market Trends

The Australia ammunition market benefits from increasing domestic demand, driven by recreational shooting, hunting, and a strong cultural tradition. The rise of shooting sports events further boosts ammunition sales. Local manufacturers uphold high-quality standards, while growing awareness of self-defence spurs interest in ammunition for personal protection. Kongsberg Defence Australia began construction of a missile manufacturing and maintenance facility in Williamtown, near Newcastle, in December 2024. The facility will produce the Naval Strike Missile and Joint Strike Missile for the Australian Defence Force, generating over 500 jobs and contributing $100 million to the local economy, with production commencing in 2027.

Government policies promoting legal firearm ownership and shooting sports reinforce market stability, driving opportunities in the Australia ammunition market. Economic growth boosts consumer spending on outdoor and sporting goods, while the strong import-export market diversifies the supply chain. Technological advancements in ammunition production enhance efficiency and quality, with military contracts ensuring steady demand.

Australia Ammunition Market Growth

Australia’s outdoor lifestyle drives demand of the Australia ammunition market, with increased investment in local manufacturing fostering market growth. Domestic production enhances self-sufficiency, reducing reliance on imports and strengthening supply chain resilience. The rising demand for custom-made ammunition for hunting and sport shooting is supported by robust distribution networks. Australian tests of the Alcor PB223 rifle demonstrated 1.25 MOA accuracy and reliable performance during high-volume shooting, with 600 rounds fired without stoppages. It achieved different accuracy levels with various ammunition types.

The Australia ammunition market revenue is impacted by strong export potential, contributing to economic growth. Increased demand from law enforcement and security services further supports the market. Ammunition holds cultural importance, with stringent regulations and sustainability efforts ensuring safety and encouraging environmentally friendly practices.

Australia Ammunition Market Insights

• The Australian economy benefits by USD 335 million and 3,300 jobs due to recreational hunting and sports shooting, according to industry reports. This highlights the economic significance of these activities within the broader market and their impact on employment.
• The Australian sports industry generates approximately USD 32 billion in annual sales and supports around 128,000 jobs, as reported by the Department of Health and Age Care. This substantial contribution further strengthens the Australian economy, with sports playing a pivotal role in job creation and economic growth.
• As of June 2022, the Australian Army comprised 28,387 permanent members and 20,742 reservists, according to the latest government data. This large workforce highlights the significance of military service in Australia, contributing to the demand for ammunition and defence-related products.

Australia Ammunition Market Drivers

Increased Demand for Hunting Ammunition

Hunting remains a popular recreational activity in Australia, fuelling the demand for ammunition tailored specifically for hunting in the Australia ammunition market. As eco-tourism and rural activities grow, the demand for hunting ammunition rises steadily. Consumers are increasingly seeking high-quality, efficient products that balance safety and performance. This trend is further bolstered by the expansion of hunting communities, growing involvement in wildlife conservation, and a heightened focus on sustainable hunting practices. With 640,000 recreational hunters and shooters in Australia, this growing demand for hunting-specific ammunition is expected to influence the market in the years ahead. This figure includes those hunting game or pests with firearms, bows, or knives, and those involved in target or sports shooting, excluding farmers who shoot pests on their properties.

Rising Popularity of Shooting Sports

Shooting sports, such as clay pigeon shooting, target shooting, and practical shooting, are becoming a prominent trend in the Australia ammunition market. This growth is driven by both recreational enthusiasts and competitive shooters, with major events and clubs promoting greater participation. The rise in competitions, sporting events, and dedicated ranges has increased the demand for varied ammunition products. There is a particular need for high-performance ammunition suited to precision shooting and tactical training, driving advancements in design, accuracy, and reliability. This trend has established the ammunition sector as a vital part of Australia’s sporting culture. Additionally, the Safe Shooting Program in New South Wales aims to improve shooting facilities, offering grants ranging from USD 10,000 to USD 50,000 to support safe, accessible environments.

Opportunities in the Australia Ammunition Market

The strict regulations on firearm ownership and use are shaping the Australia ammunition market dynamics and trends. These laws mandate proper licensing for both firearms and ammunition, ensuring a well-regulated, transparent, and secure market. Government policies governing ammunition sales and distribution promote responsible consumer behaviour and maintain safety. Although these regulations can be restrictive, they ensure market control and contribute to consistent demand for legal ammunition, bolstering public confidence. In response to concerns about China’s ICBM test in the South Pacific, Australia strengthened its missile defence capabilities in October 2024. This included increasing missile stockpiles and working with the US, Japan, and South Korea to enhance regional stability, alongside an AUD 74 billion investment in missile acquisition and domestic production over the next decade.

Market Restraints

The Australia ammunition market faces multiple restraints impacting its growth. Strict regulations on firearms and ammunition limit potential consumers and market entry, while high compliance costs deter new businesses. Environmental concerns over traditional ammunition, such as lead-based projectiles, push for more expensive, sustainable alternatives. The market is also constrained by a small consumer base and limited gun ownership.

Import restrictions and supply chain disruptions further affect product availability. Social and political resistance, especially after gun violence incidents, could lead to stricter regulations. Economic downturns impact discretionary spending on shooting and hunting, while rising safety concerns could lead to more restrictions on ammunition sales.

Australia Ammunition Market Share

Market Analysis by Calibre

According to the Australia ammunition market analysis, small calibre ammunition, commonly used in rifles and handguns, plays a significant role in the country’s ammunition market. Its wide use in recreational shooting, hunting, and law enforcement drives demand. The accessibility and affordability of small calibre ammunition support its popularity for shooting sports and self-defence, fostering steady market growth and creating opportunities for local manufacturing. Australian-owned defence prime NIOA has secured a long-term supply contract with Winchester, the largest small arms ammunition manufacturer globally, ensuring a reliable supply of munitions for the Australian Defence Force (ADF) for both current and future small calibre weapons.

Medium calibre ammunition, typically used in military and some law enforcement applications, supports the growth of Australia’s defence sector. With the ongoing modernisation of military forces, medium calibre ammunition plays an essential role in enhancing Australia’s strategic capabilities, strengthening local production, and supply chains for the armed forces. NIOA, in partnership with Rheinmetall NIOA Munitions, has started producing 40,000 rounds of medium calibre training ammunition for the Australian Army's Boxer Combat Reconnaissance Vehicle at its Benalla plant, marking a key milestone in the country’s munitions manufacturing.

The Australia ammunition market is driven by the rising demand for large calibre ammunition, which is used in artillery, tanks, and heavy military equipment, and plays a crucial role in enhancing Australia’s defence capabilities. Military contracts and international exports fuel this demand, while investments in local manufacturing boost self-sufficiency and the economy. Technological advancements in large calibre ammunition also enhance performance and precision, contributing to improvements in defence operations.

Australia’s rockets and missiles sector is experiencing significant growth, particularly due to the expansion of missile defence systems and long-range strike capabilities. Collaborations with the US, Japan, and South Korea aim to enhance Australia’s missile defence, bolstering national security. This sector’s growth fosters innovation and job creation, particularly in advanced manufacturing for guided weaponry.

Market Analysis by Product Type

According to the Australia ammunition market report, rimfire ammunition, commonly used in small-calibre rifles and handguns, holds a significant market share due to its affordability, versatility, and use in recreational shooting, hunting, and training. Its low cost and widespread accessibility attract a large consumer base, ensuring steady demand and growth. Winchester has launched the 21 Sharp, a new rimfire cartridge designed to compete with the popular .22 Long Rifle (LR), offering an affordable and environmentally friendly alternative, especially in regions with lead ammunition restrictions.

The Australia ammunition market benefits from the increasing demand for centrefire ammunition, mainly used in higher-calibre firearms like rifles and shotguns for hunting, law enforcement, and military purposes. Growing interest in precision shooting and hunting, along with its reliability, makes it a key product in the market.

Market Analysis by End User

The civil and commercial sector of the Australia ammunition market experiences strong demand, driven by recreational shooting, hunting, and sports shooting. Growing participation in shooting sports and increasing interest in self-defence fuel market expansion. This sector also supports local manufacturing and retail, boosting job creation and offering economic benefits, contributing to overall market growth.

The defence sector plays a significant role in the Australia ammunition market revenue, with military modernisation and defence contracts increasing the demand for high-performance ammunition. This sector is vital for national security, focusing on advanced weapon systems and ammunition for the Australian Defence Force. Local manufacturing and international partnerships strengthen supply chains, ensuring strategic self-sufficiency. In January 2025, Australia secured a contract with Norwegian defence company Nammo to supply advanced 25mm x 137 APEX PGU-47/U armour-piercing ammunition for its F-35A Lightning II jets, valued at approximately AUD 22.9 million, enhancing the Royal Australian Air Force's operational capabilities.

Australia Ammunition Market Regional Insights

New South Wales Ammunition Market Overview

As per the Australia ammunition industry analysis, the New South Wales ammunition market is driven by strong demand from both recreational and professional shooting sports. As the number of hunters and military professionals grows, there are opportunities for innovation, product development, and improved safety standards. All firearms used by licensed holders in NSW must be registered, with some exemptions for imitation firearms.

Queensland Ammunition Market Trends

Queensland’s ammunition market is expanding due to rising interest in shooting sports and hunting. There is a noticeable shift towards eco-friendly products, higher-quality ammunition, and an increase in recreational shooting, all which influence demand and offerings in the region. In October 2024, a munitions factory in Queensland, jointly owned by Rheinmetall and NIOA, began producing tens of thousands of artillery shells for Ukraine. The first such facility built in Australia since World War II plans to increase production by 25%, though raw material supply chain issues remain a challenge.

Western Australia Ammunition Market Dynamics

Western Australia’s ammunition market is influenced by demand from both commercial and recreational sectors. Key trends include an emphasis on long-range shooting, stricter safety regulations, and greater interest in firearms training, all fostering market growth and innovation. The Western Australian Government's Firearms Amendment Bill 2021 could potentially ban ammunition reloading, reloading presses, dies, and firearms manuals without special permission. Concerns about the Bill, particularly Section 43, have prompted calls for WA members to contact MPs and voice their opposition.

Competitive Landscape

The Australia ammunition market key players are manufacturers of ammunition and shooting sports accessories. These companies focus on delivering high-quality, innovative products for hunters, competitive shooters, and military professionals. Their range includes bullets, cartridges, and other firearm-related accessories. Their expertise extends to cybersecurity, naval systems, and aerospace, with a particular focus on developing advanced technologies and providing solutions for air, land, sea, space, and cyber domains.

Key Industry Players

Ammo, Inc.: Ammo, Inc. is a leading US-based manufacturer of ammunition and shooting sports accessories. Established in 1982, headquartered in Arizona, United States, the company specialises in providing high-quality, innovative products for hunters, competitive shooters, and military professionals. Their offerings include bullets, cartridges, and other firearm-related accessories.

BAE Systems: BAE Systems is a global defence, security, and aerospace company headquartered in Hampshire, United Kingdom. Founded in 1999, it is one of the world’s largest defence contractors, providing advanced technology solutions to military and commercial clients. Their areas of expertise include cybersecurity, naval systems, and aerospace.

General Dynamics Corp: General Dynamics, headquartered in Virginia, United States, was established in 1952. The company is a prominent player in aerospace and defence, offering a wide range of services and products, including military vehicles, communications equipment, and submarines. General Dynamics serves both government and commercial sectors globally.

Northrop Grumman Corporation: Northrop Grumman is an American aerospace and defence company, established in 1939. Its headquarters is in Virginia, United States. The company specialises in innovative technologies, providing solutions for air, land, sea, space, and cyber sectors. Northrop Grumman focuses on national security and civil markets.

Other key players in the Australia ammunition market report are Hanwha Corporation, Thales Group, Rheinmetall AG, Temasek Holdings, Vista Outdoor Inc, FN Herstal, Nexaer, and Remington Arms Company, among others.

Recent Developments

October 2024

The Federal Government committed to producing 155mm M795 artillery ammunition and Guided Multiple Launch Rocket Systems (GMLRS). Thales was selected to establish a new forging facility, creating 550 jobs. A GMLRS facility, in partnership with Lockheed Martin, would also create 70 jobs, with production targets for 2028 and 2029.

October 2024

Amid rising geopolitical tensions, particularly China’s military assertiveness, Australia committed AUD 18 billion (USD 12 billion) to strengthen its missile manufacturing. This investment was part of a broader defence strategy to enhance long-range strike capabilities and reduce dependency on foreign suppliers for missile systems.