Reading about people embracing good clean options... and the huge growth in people doing so, kinda gets me excited... people do care about themselves and the world in which we live!
Over the weekend I read many snippets from the biennial independent Australian Organic Market Report, which was released last week.
News flash... organics is one of Australia’s top five growth industries, and is becoming main stream! {yip... yip}
I am also quietly excited that supermarkets are fast embracing organics, with growth apparently being propelled by the average Australian. More than 1 in 20 people are regular shoppers of organics and almost 2 in 3 have bought organic in the past year.
The report finds 3 in 4 organic products are now bought at supermarkets, representing an ongoing market trend as consumers look for organics. Recently I spotted Woolworths organic corn chips and organic sweet potato chips and was excited to see that a friend posted a picture of her organic macro milk purchase on instagram for me! Whilst the big supermarket chains are not typically on my favourite list, the fact that they are listening, catering and making organics more accessible is great news. {yes a pat on the back for the big guys}
Latest research confirms organics is worth $1.27 billion to Australia and is predicted to grow by up to 15% each year, putting it within the top 5 growth industries in Australia. This growth exceeds global growth trends, which are 2 - 11%.
Farm gate sales of organic products have risen by 34% since 2010. The meat sector has experienced a dramatic increase. Sales of 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.
Australia has the largest area of certified organic land in the world. :-)
Dr Andrew Monk BFA director and Report co-author says: “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.
“Sixty-five per cent 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.
“Trust in organic certification and consumer awareness of standards and certification has increased considerably. Notably there has been a significant increase in recognition of Australia’s main certification logo, Australian Certified Organic, up a further 25% in recognition from the 2010 report.
“Women remain the main buyers of organics for health reasons, however the environment as a motivator has fallen significantly, which may be reflective of 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.
“Wine grapes has also been an area of exceptional growth (107%), and dairy (63%).
“Fruit and vegetables remain the most commonly purchased item, while non alcoholic drinks rank as the highest frequency purchase, highlighting the “lifestyle” products now available on the market,” Dr Monk says.
Some highlights from the report:
• The average growth projection for the coming years is 10–15%, reflecting the growth from the past two years – more than the 2-11% growth trends internationally and well above growth rates for conventional food and beverages.
• Retailer-owned private labels are increasingly entering the market e.g. Coles, Woolworths and ALDI in the past few years launched their own organic UHT and/or extended shelf life fresh milks.
• Fresh fruit and vegetables (60% of consumers claimed to purchase in the past year) are the most commonly bought organic products, followed by cooking ingredients (45%), canned goods (39%), bread (39%), red meat (35%) and dairy products (34%).
• A further 13% of consumers estimate they spend between 10 and 20% of their average household total food budget on organic products, with the remainder spending 10% or less.
• Four of the five top perceived benefits continue to revolve around what organic food ‘does not contain’. These are Chemical-free (79%), Additive-free (77%), Hormone/antibiotic-free meat (64%) and Non-GMO (62%).
• Approximately 5% of organic shopping is done either online or via direct methods such as home delivery.
• 36% of Australian adults say that they would reject a product claiming to be organic if it wasn’t certified.
• Of the 1.6 million organic producers 34% are located in Africa, 29% in Asia and 18% in Europe. The countries with the greatest number of organic producers are developing countries including India (400,551), Uganda (188,625) and Mexico (128,862). Markets for organic food products in India grew by over 20% between 2011 and 2012.
For more findings visit: www.bfa.com.au
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