Nestled in subtropical Queensland, Bundaberg’s economy is primarily driven by the sugar industry, with extensive sugar cane fields sprawling across the district. The local economy benefits significantly from value-adding operations, including the milling, refinement, packaging, and distribution of sugar, which are essential to the city's economic landscape. The Bundaberg region hosts a bulk terminal on the Burnett River dedicated to the export of raw sugar, with most of the product shipped overseas.

Historically, Bundaberg has been home to a factory that manufactured sugar-cane harvesters, although this facility was closed after being acquired by the U.S. multinational corporation Case New Holland. In recent years, a noticeable shift has occurred in the agricultural landscape, with a decline in cane farming and a corresponding increase in macadamia nut farms. The main market for these nuts is China, highlighting Bundaberg's growing agricultural diversity.

Additionally, Bundaberg is well-known for its production of Bundaberg Rum, which utilizes molasses, a by-product of sugar production. The region is also home to various beverage companies, including Bundaberg Brewed Drinks, the Ballistic Brewing Company, and craft distilleries such as Waterview Distillery and Kalki Moon.

The city also boasts a thriving commercial fruit and vegetable sector, producing a wide array of crops, including avocados, bananas, beans, capsicum, citrus fruits, mangoes, and more. The year-round farming opportunities in Bundaberg attract a significant number of backpackers seeking to extend their working holiday visas in Australia. These visitors often find work in local farms, facilitated by a network of hostels catering to their needs.

However, the treatment of some backpackers has drawn criticism from the media and social platforms, with reports emerging of poor living conditions, underpayment, and allegations of abuse. Such issues have prompted warnings from backpackers about the working hostels in the area, raising concerns about the local labor market.

Despite its agricultural strengths, Bundaberg faces economic challenges, including a high unemployment rate that has led to its nickname as the "dole capital of Australia." These factors highlight the need for ongoing efforts to diversify the economy and improve working conditions for the region's labor force, ensuring a sustainable economic future for Bundaberg and its residents.