Organic Industry Australia

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There has been new categories that have driven an extreme growth in the organic sector in Australia to a record $1.72 billion industry. (Euromonitor)

The industry now valued at 1.72 billion has represents a 15.4 per cent compound annual growth rate (CAGR) since 2009. The growth is due to an increase of consumption of certified organic food, cosmetics and household products.

Australia still has the largest area of organic land in the world with 54 million Acres. Between 2011 and 2014 there has been a 53 per cent increase in fully certified organic land area and organic producers such as Farm-Gate have been in the rise and value of $508 million.

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Drivers

There are several reasons why such increase in the industry. The major driver is the availability of organics in major supermarkets and new independent organic groceries. Another strong driver is the export market, which supports the existing organic farmers. According to data organic product exports have doubled in the last two years.

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Sectors

Different sectors play a role in this extreme growth. Dairy has been the fastest growing organic category and it is estimated to be worth $113 million with the bigger percentage coming from yogurt. Even though the organic beef sector is not the fastest growing sector it is the one most valued at $198 million. The last important growing sector is the organic wine sector.

The Australian retail market for certified organic is expected to continue growth in the near future. There is a greater demand for organic products than ever before and also an upward trending outlook.

Consumers’ reasons for shopping organic

Australians are becoming increasingly aware of product labels, reading nutritional panels and seeking information about the ingredients in the products they consume. Consumers in Australia are also looking for reassurance when buying organic, more consumers now believe if products are more organic than they could trust the product even more. Consumers also want their products to be chemical free, additive free, environmentally friendly and non-GM.

The changes in consumer behavior above indicate that Australia will continue to see positive growth in the organic industry.

 

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