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

Australia Ammunition Market Overview

The Australia ammunition market is experiencing steady growth, driven by cultural affinity for recreational shooting and hunting. Participation in shooting sports continues to rise, with events drawing nationwide engagement, boosting both ammunition consumption and related retail sales. The sector also stands to benefit from defence-sector investments, notably the AUD 150 million Kongsberg Defence Australia missile facility in Williamtown, which is forecasted to generate 500 jobs and commence production by 2027. This dual-track growth, between civilian and defence, solidifies ammunition as a high-potential category within Australia’s broader sporting and tactical goods market.

Government initiatives supporting legal firearm ownership and structured shooting sports regulations are stabilising the Australia ammunition market opportunities. These policies not only ensure regulatory clarity but also promote responsible use, strengthening consumer confidence and participation. Concurrently, economic expansion is translating into increased discretionary spending on outdoor recreational goods, including firearms and ammunition.

Australia Ammunition Market Growth

Australia’s entrenched outdoor culture and increasing participation in hunting and shooting sports are key trends in the Australia ammunition market. The market is further strengthened by growing investment in domestic manufacturing, which enhances self-sufficiency and reduces exposure to international supply chain disruptions. The Alcor PB223 rifle’s recent performance trials, which achieved 1.25 MOA accuracy and fired 600 rounds without stoppage, validate local innovation and product reliability. Rising demand for customised ammunition, especially among sport shooters and hunters, is effectively supported by Australia’s well-developed distribution networks, accelerating market penetration and supply chain efficiency.

The Australia ammunition market revenue is impacted by robust export potential, contributing to national economic growth and positioning Australia as a reliable regional supplier. Demand from law enforcement and private security sectors is rising steadily, driven by ongoing procurement cycles and training requirements. Cultural acceptance of ammunition use, within the bounds of strict regulatory oversight, supports long-term stability.

Key Trends and Developments

The Australia ammunition market is experiencing strong growth driven by rising civilian participation in shooting sports, supportive government policies and regulations, increased investment in domestic manufacturing capabilities, and expanding procurement from the defence and security sectors.

May 2025

Australia initiated the Talon Strike programme under ASCA to develop medium-range precision loitering munitions, issuing tenders with delivery by December 2026, aiming to enhance domestic defence capabilities and bridge capability gaps, reflecting ongoing government investment in advanced military technologies.

March 2025

Rheinmetall Defence Australia began assembling the Multi Ammunition Soft Kill System (MASS) for the Royal Australian Navy, creating over 30 jobs and supporting six naval platforms, with the contract running until 2027 and potential expansion to the entire fleet, strengthening local defence manufacturing capabilities.

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 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.

Rising Civilian Participation in Shooting Sports is Boosting the Australia Ammunition Market Growth

Australia is seeing increased engagement in recreational shooting and hunting, driving demand for ammunition. The sport shooting culture, supported by regional clubs and national competitions, is fostering a steady consumer base. This trend supports retail growth in ammunition sales and encourages investment in product innovation tailored to sport and leisure applications.

Government Support and Regulatory Stability is Driving the Demand of the Australia Ammunition Market

A stable regulatory framework governing legal firearm ownership in Australia underpins market confidence. Government initiatives promoting responsible gun use and structured licensing enhance public trust. This regulatory clarity creates a secure environment for manufacturers and distributors, enabling long-term investment, product development, and predictable market expansion within civilian and defence segments.

Strengthening Domestic Manufacturing Capabilities is Impacting the Australia Ammunition Industry Revenue

Investment in local ammunition production is reducing reliance on imports, strengthening supply chain resilience and national defence readiness. This trend aligns with government objectives to build sovereign capability in key industries. Domestic manufacturing also offers opportunities for technological innovation and employment, while ensuring a consistent supply during global disruptions.

Expansion of Defence and Security Procurement is Driving Opportunities in the Australia Ammunition Market

Ongoing procurement by defence and security agencies remains a critical demand driver. With growing military personnel and increased training requirements, there is consistent institutional demand for high-volume, high-specification ammunition. This underpins long-term supply contracts, fosters innovation in tactical product lines, and supports private-sector partnerships within Australia's defence supply chain.

Australia Ammunition Market Trends

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. 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 AUD 15,000 to AUD 50,000 to support safe, accessible environments. There is a particular need for high-performance ammunition suited to precision shooting and tactical training, driving advancements in design, accuracy, and reliability.

Australia Ammunition Market Opportunities

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. 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. Although these regulations can be restrictive, they ensure market control and contribute to consistent demand for legal ammunition, bolstering public confidence.

Market Restraints

The Australia ammunition market faces several structural and regulatory challenges that constrain its growth trajectory. Stringent firearm and ammunition regulations significantly limit consumer accessibility, raising compliance costs and deterring new market entrants. Environmental concerns regarding traditional lead-based projectiles are also driving a shift toward sustainable alternatives, which, while necessary, increase production costs and reduce margins.

Furthermore, Australia’s relatively small firearms-owning population and limited civilian demand restrict overall market scalability. Ongoing global supply chain disruptions affect product availability, while economic slowdowns curtail discretionary spending on recreational shooting.

Australia Ammunition Market Share

Market Analysis by Calibre

According to the Australia ammunition market report, 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. 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. 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, impacting the Australia ammunition industry revenue.

Market Analysis by Product Type

According to the Australia ammunition market report, rimfire ammunition commands a substantial market share due to its cost-effectiveness, versatility, and popularity in recreational shooting, hunting, and training. Its affordability and widespread availability contribute to consistent demand and market expansion. Winchester’s launch of the 21 Sharp rimfire cartridge aims to compete with the dominant .22 Long Rifle (LR) by offering an environmentally friendly and affordable alternative, particularly in regions with lead ammunition restrictions.

The Australia ammunition market is also experiencing growing demand for centrefire ammunition, primarily used in higher-calibre firearms like rifles and shotguns for hunting, law enforcement, and military applications. The increasing popularity of precision shooting and hunting, coupled with centrefire ammunition’s reliability, positions it as a key product in the market, driving growth and attracting a diverse range of consumers across both civilian and defence sectors.

Market Analysis by End User

The civil and commercial sector of the Australian ammunition market is experiencing strong demand, driven by increased participation in recreational shooting, hunting, and sports shooting. Rising interest in self-defence further supports the Australia ammunition market expansion. This sector plays a key role in supporting local manufacturing and retail, contributing to job creation and offering substantial economic benefits, thus driving overall market growth.

The defence sector impacts 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.

Victoria Ammunition Market Drivers

Victoria plays a pivotal role in Australia’s ammunition market, underpinned by its advanced manufacturing infrastructure and strong defence industry presence. The state's skilled workforce and government-backed defence initiatives encourage local production, supply chain innovation, and R&D investment. Victoria's integration with logistics and export networks further enhances its attractiveness as a key contributor to national ammunition capabilities.

Australian Capital Territory Ammunition Market Opportunities

As the administrative centre of Australia, the ACT influences national defence policy and procurement frameworks, directly shaping the ammunition market direction. With a high concentration of federal defence institutions and security agencies, the territory supports sustained demand for specialised ammunition. Its policy-driven ecosystem fosters regulatory stability, creating favourable conditions for public-private collaboration and long-term sector planning.

Competitive Landscape

Key players in the Australia ammunition market include manufacturers specialising in ammunition and shooting sports accessories. These companies prioritise delivering high-quality and innovative products tailored to hunters, competitive shooters, and military professionals. Their product offerings encompass a wide range of ammunition, including bullets and cartridges, along with firearm-related accessories. Additionally, these companies leverage expertise in diverse sectors, such as cybersecurity, naval systems, and aerospace, focusing on the development of advanced technologies for various domains, including air, land, sea, space, and cyber.

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.