Australia's organics market is growing

Organics are on the rise in Australia with the current market worth $2.4 billion, but one crucial factor stunting market growth is the cost barrier, according to new research.

Findings from the ‘Australian Organic Market Report 2018’ revealed that more than 6 in 10 Australian households buy organic every year, with 12% spending 40% or more. More information about the chemicals used in foods and their negative environmental and health connotations were crucial factors driving consumers to opt for organic.

Australian Organic General Manager Sue Willis said, “Outbreaks across the world of foodborne illness, contamination and environmental scares arising from chemical exposure are contributing to this shift in our spending and purchasing habits, with many Australians citing aspects related to personal health outcomes, and the health of their families, as a key driver for choosing to go organic.”

The benefits of choosing organic food have not been definitively proven, but Professor Marc Cohen of RMIT University said research has shown that a week of eating 80% organic food can reduce urinary pesticide loads by around 90%. Obesity, neurodevelopmental and reproductive disorders, and other chronic diseases have also been linked to chemicals in food, home cleaning products and beauty products.

However, not everyone is choosing organic products, and 67% of respondents stated this was because the costs are too high. Cohen explained that organics are expensive because they cannot contain the same chemicals used on non-organic products.

“Non-organic produce and products are mass produced, and to do this, it’s cheaper and easier to use toxic chemicals to preserve them, distribute them and keep them shelf stable for a bit longer, so while cost may be a barrier, there’s a reason for it. I would encourage Australians to buy certified organic as much as possible, or where cost is an issue, grow your own,” he said.

But with more organic products entering the market, this should reduce prices making it a more accessible option for everyone, including millennials. For example, home brands such as Woolworths’ Macro brand and Coles Organic offer consumers more affordable prices.

“We’re seeing an increase in uptake of organic from millennials and younger generations — a group who typically do not have the most disposable income — and I believe this is largely due to their appreciation of their health and wellbeing, but also due to organic becoming more accessible than ever before,” Willis said.

For the 40% of respondents who said they were wary about trusting whether a product is certified organic, they are encouraged to look out for logos such as the Australian Certified Organic ‘bud logo’ for reassurance.

“My job is to ensure that we continue to improve the understanding around certified organic products through the use of credited logos and labelling, including our bud logo, which is the only guarantee for consumers that what they are purchasing is genuinely organic and a safe choice,” Willis stated.

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