Australia's organic industry is worth $2.6 billion with vegetables, beef and non-alcoholic beverages the top performing sectors, the latest Australian Organic Market Report says.
Released by Australian Organic, the report found 65 per cent of Australian households are now buying some sort of organic product every year - a rise of five per cent. Domestic sales in 2018 were worth $1.93 billion, up $256 million from $1.67 billion in 2017.
Increased awareness of chemicals and the environment were major purchase drivers. Consumers said the main benefits were chemical-free (80 per cent), environmentally friendly (71 per cent), and additive-free (65 per cent).
Australian Organic general manager Niki Ford said the rapidly growing domestic market needed better regulations as a "raft" of non-certified products falsely claiming to be organic were in the market.
Ford said the industry was “constantly reacting” to significant international trends including consumer demands for convenience-based products. “The trends for ready-to-eat, packaged and alternative products are unmistakable in their presence on the retail shelf and demonstrated by the significant increase in certified processors since 2018,” she says.
“The now diverse array of certified operators encompasses a rich blend of producers, processors, input manufacturers, handlers and retailers.”
A panel at the Naturally Good Expo on Monday (3 May) discussed the Australian organic industry.
Strategic consulting organisation Mobium Group director Nick Bez has been tracking the market since 2009.
“The biggest change has been the democratisation of who buys organics,” Bez says. “We've moved well away from the niche and fringe markets to now major influencers in all demographics. It’s not about age, where or how you live, this is a lifestyle choice people are starting to make.”
Bez said it is about more availability of products in more categories in more mainstream channels. “We're starting to see participation across the board. Life stage is important, but it would be a mistake to try and stereotype the organic consumer,” he says.
Bez says there’s a “big wave” emerging with Gen Z consumers, who are the most educated on organic, environmental and health issues of any generation. It will be a “basic expectation” on producers, brands, products and retailers to take into account social, environmental and health issues.
