$1.27 billion organic sector is booming, report says

Business is booming in Australia’s organic sector. The biennial independent Australian Organic Market Report shows that organics is worth $1.27 billion and is predicted to grow by up to 15% each year, putting it within the top five growth industries in Australia.

In contrast, global growth trends sit between 2 and 11%. Since 2010, farm gate sales of organic products have risen by 34% and organic meat sales have experienced a dramatic increase. Sales of organic beef are up by 111% to $72.7 million, lamb is up by 64% to $18.6 million and poultry has increased by 15% to $17.8 million.

The report, commissioned by Biological Farmers of Australia (BFA), was officially launched on 26 October to mark the BFA’s 25th anniversary, which the organisation says celebrates a quarter of a century of formalised organic market industry self-regulation and advocacy.

Consumers are embracing organic produce, the report shows, with more than one in 20 shoppers regularly buying organic and almost two in three having bought organic in the past year.

“Shoppers are voting with their wallet and supporting foods and fibre that are not only quality products that are good for us but are also good for the environment,” said Dr Andrew Monk, Director of the BFA and co-author of the report.

“65% of Australians have bought organic in the past year and more than a million Australians do so regularly. Three prior noted top barriers to buying organics - price, ease of access/availability and trust in the product being organic - have all been reported as being lesser barriers for consumers than in 2010.”

Consumer trust in organic certification has also increased, Monk said, as has consumer awareness of standards and certification. Since 2010, recognition of the Australian Certified Organic logo has increased by 25%.

Strong growth areas include wine grapes, up 107%, and dairy, which has increased by 63%. Fruit and vegetables are the most commonly purchased organic items, while non-alcoholic beverages rank as the highest frequency purchase.

Women tend to buy organic for health reasons, Monk said, but environmental motivations for choosing organic seem to have decreased, perhaps reflecting a lack of engagement on climate change issues.

“From cleaning products to pet food and cosmetics, organics is moving from mostly food for the fringes to being mainstream and including non-food areas as it is increasingly seen as a lifestyle choice,” Monk said.

The Australian Organic Market Report is co-funded by Horticulture Australia Limited (HAL).