Latest Australian Organic Market Statistics
Australia’s appetite for organics at record levels. The latest Australian Organic Market Report reveals the nation’s organic industry is worth $2.6 billion, contributing $851 million to the Australia economy and growing by over 15% each year.
Every two years Australian Organic produce the Australian Organic Market Report , tracking industry and consumer trends in the Australian organic marketplace based on research by the Mobium Group, Swinburne University of Technology and ABS statistics.
The latest report (published in 2023), shows a continued trend of growth in the consumption of certified organic food, cosmetics and household products, with 53% of consumers purchasing more organic fruits and vegetables and 33% more meet. Dairy and beef are the fastest growing organic sectors.
Consumers are indicating that the importance of certification logos, with an 18% increase in recognition from 2019. As consumers become more aware of greenwashing tactics, they are looking to certification status to ensure their purchasing choices align with their values. 33% of organic consumers purchased a product believing it was organic, only to learn later it wasn’t, and 31% believe that trust in organic status is a barrier to purchasing. For this reason, regulation around the term ‘organic’ and certification status is imperative, to help consumers build trust in the brands that are truly organic.
What do organic consumers look like?
According to the 2023 Australian Organic Market Report, those most likely to purchase organic goods are aged between 18-39 years, earning over $40,000/year, are currently or have previously attained a university degree and have at least one child (under 16 years) living at home. Not only are consumers of organic products looking for organic certification, they also care about the impact the product has on the environment – searching for products that are sourced ethically and consider their footprint on the planet when it comes to utilising plastic packaging.
How does Australia compare to the rest of the world?
Australia is the leading country when it comes to land that is dedicated to organic farming, at 53 million hectares, growing by almost 49%, making Australia take out top spot of contributing 70% of the total organic farmland globally. However, globally, only 2% of farmland is dedicated to organic activities. From a monetary value, NSW contributes the most to the organic sector, while Victoria contributes the most in terms of jobs created. Globally the organic market is considered to be worth $135 billion euros (approximately $225 billion AUD), meaning Australia’s organic market contributes only 1% of these global market figures. The US currently has the largest market of organic food, at almost 37 times the size of the Australian organic market, for this reason, approximately 48% of organic products being exported make their way to the US. Australia’s organic sector growth is slower than that of the US and the UK, growing at just 6.4%, in comparison to 12.4% and 12.6% respectively.
Growth areas in the organic sector
The organic alcoholic beverage sector is growing significantly, becoming the 3rd most common category for organic goods. With 10% of wineries in Australia being certified organic, Australia is now 11th in the world for organic wine production, growing by 1500% in the decade from 2012 to 2022. Fruit and vegetables continue to be a popular entry point for growers seeking to produce organic goods, due to its low cost entry point, and certified organic meat producers are receiving 25% more for their meat compared to conventional growers.
With all this in mind, it’s clear to see that the organic sector in Australia continues to grow year-on-year, with more consumers becoming aware of the personal benefits and environmental impact that organic goods have. By upholding organic standards and becoming certified, organic business’ are giving peace of mind to their consumers, building trust not only in the organic market as a whole, but with their individual brand.
Looking back – 2019 Report has some interesting industry stats including:
The overall number of households saying they have purchased at least one organic product in 2018 lifted to 65% from the previous year.
More than half of organic buyers (55%) say that they look for a certification logo on the label to check if a product is organic.
Over 90% of purchasers say that they shop for organics in supermarkets at some time.
The benefits of products being chemical-free (80%), environmentally friendly (71%) and additive-free (65%)are viewed as the biggest advantages of organic food.
Just under half of organic shoppers say they purchased organic due to increased awareness of the impact of food and cosmetics on their personal health.
Over 7 in 10 shoppers use Google to search for information about organics.
