Organics and Green Market in Australia
The market for green, natural and organic goods in Australia has grown significantly in the past decade and this trend is forecast to continue over the coming years.
Overall, Australia’s organic domestic retail sales (both primary produce and processed products) have grown over 50 percent in the past two years to reach a value of AU$947 million in 2010.
Market Overview
Demand
The market for green, natural and organic goods in Australia has grown significantly in the past decade and this trend is forecast to continue over the coming years. Demand has been primarily driven by the global health consciousness trend and greater environmental awareness. Demand currently outstrips supply in the organics market, and approximately AU$200 million worth of organic products are imported into Australia.
Price
While typically organic and green products command a price premium over conventionally produced products, the increased demand for and availability of these products has led to a reduction in the price differential.
Channel
Supermarkets are the main distribution channel, accounting for over 60 percent of organic sales and all the major chains have their own organics labels.The range of products available in the organics and green market space is diverse, with major retailers selling over 500 different organic grocery lines.
Producers
There are almost 3,000 certified organic operators throughout Australia, of which approximately three quarters are primary producers. Organic operations exist in every state, but the majority are based in New South Wales, Victoria and Queensland.
Retail
Overall, Australia’s organic domestic retail sales (both primary produce and processed products) have grown over 50 percent in the past two years to reach a value of AU$947 million in 2010.ii However, despite this organic food sales still only account for around one percent of total food sales in Australia.
