Demand for organic products in Australia has grown more than 15 per cent to become a $1.72 billion industry, according to the latest Australian Organic industry market report.
The biennial report, commissioned Australian Organic, has found the organic industry is now valued at over $1.72 billion, representing a 15.4 per cent compound annual growth rate (CAGR) since 2009.
The report also found that dairy is the fastest growing organic category in 2014, and is now estimated to be worth $113m, followed by beef which was worth $198m in 2014.
Organic wine grape production more than doubled between 2011 and 2014 and is now worth $117m.
“One of the most significant findings was that 69 per cent 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,” Dr Andrew Monk, Australian Organic chairman said.
The report also found that demand for organics was outstripping supply by 40 per cent, indicating that the Australian retail market for certified organic products would continue to see strong growth, driven by “private label products, certified organic processed foods and greater affordability”.
The report aims to track trends in the Australian organic marketplace based on research by the Mobium Group, Swinburne University of Technology and ABS statistics.
According to the report, the availability of organics in major supermarkets and new independent organic retailers is in part responsible for this growth.
Also, an extremely strong export market is supporting existing farmers and producers as well as encouraging new entrants into the organic arena, the report found.
