December 10, 2014 Sophie Langley

Australias appetite for organic foods at record levels

New categories in the organic sector in Australia have driven record growth in the $1.72 billion industry, according to a biennial industry report from organic certifying group Australian Organic.

The Australian Organic Market Report is a biennial publication commissioned by Australian Organic that track trends in the Australian organic marketplace. This years Report incorporates independent research by Swinburne University of Technology, the Australian Bureau of Statistics (ABS) and Mobium Group.

The organic industry is now valued at over $1.72 billion, representing a 15.4 per cent compound annual growth rate (CAGR) since 2009. Australian Organic said the growth demonstrated that consumption of certified organic food, cosmetics and household products was at a record high in Australia.

The report found that Australia still has the largest area of organic land in the world (22 million hectares). There had been a 53 per cent increase in fully certified organic land area between 2011 and 2014. Australian organic production (farm-gate) value is $508 million, up 18 per cent since 2012.

Growth drivers

Availability of organics in major supermarkets and new independent organic retailers was in part responsible for this growth, according to Australian Organic.

However, an extremely strong export market was also supporting existing farmers and producers as well as encouraging new entrants into the organic arena. Exports of organic products have more than doubled from 2012 to 2014 with the organic export market now worth $350 million.

Growth sectors

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Australias appetite for organic foods at record levels