Uncategorised

Australian organics industry enjoys record growth

The biennial Australian Organic Industry report was released today, highlighting key categories that are driving significant growth results.

The Australian Organic Market Report, commissioned by organic certifier Australian Organic, tracks trends in the Australian organic marketplace based on research by the Mobium Group, Swinburne University of Technology and ABS statistics.

The report found that consumption of certified organic food, cosmetics and household products are now valued at over $1.72 billion, representing a 15.4 percent compound annual growth rate since 2009.

Key findings across industry sectors driving growth:

  • Dairy is the fastest growing organic category in 2014, now estimated to be worth $113m
  • With compound growth of 127 percent 2011–2014, beef is the second fastest growing sector with a total value of $198m in 2014
  • Wine grape production increased by a staggering 120 percent between 2011 and 2014 and is worth $117m
  • Despite suffering during the drought, the organic grain category has grown by 20 percent with total crop values lifting by 67 percent in three years

Dr Andrew Monk, chairman of Australian Organic says that with demand for organics outstripping supply by up to 40 percent, the Australian retail market for certified organic products expected to continue to grow with private label products, certified organic processed foods and greater affordability driving this trajectory.

“One of the most significant findings was that 69 percent of primary food shoppers in Australia claim to have bought at least one certified organic product in the past 12 months. This demonstrates that organics are gaining greater penetration beyond the group of consumers who have traditionally purchased them,” says Monk.

“For the first time, we asked consumers their reasoning behind choosing organics with 49 percent of respondents claiming that they first purchased certified organics as they became aware of the impact food, fibre and cosmetics may have on their health. 16 percent began buying organic specifically because of a health crisis.”

The report has also revealed the perceived benefits of organic products are consistently associated with what organic food does not contain and is not produced with. The top six being: chemical free (80 percent), additive free (77 percent), environmentally friendly (68 percent), hormone and antibiotic free (meat) (60 percent), non-GM and free range (each 57 percent).

Other key Australian Organic Market Report 2014 findings include:

  • Organic purchases by those who are not categorised as green or sustainable shoppers increased from 24 percent in 2012 to 40 percent in 2014.
  • The Australian Certified Organic logo is by far the most recognised organic certification mark – a significant leap of 22.5 percent in awareness from 2012.
  • 32 percent of shoppers say they would only buy a product labelled as ‘organic’ if it is certified organic.
  • Australia still has the largest area of organic land in the world (22 million hectares) and there has been a 53 percent increase in fully certified organic land area between 2011 and 2014.
  • Exports of organic products have more than doubled from 2012 to 2014 with the organic export market now worth $350m.
  • Australian organic production (farm-gate) value is $508m, up 18 percent since 2012.
  • In non-alcoholic beverages, organic coffee saw the most dynamic retail value sales growth of 15 percent to reach $10m in 2013.

 

Send this to a friend