Australian Organic Market Report 2018 excites new investment
The Australian organics market is now estimated to be worth $2.4 billion, and has grown 88% since 2012, the launch of the Australian Organic Market report for 2018 is no surprise to suppliers of organic food.
These facts are amongst statistics contained in a report about the Australian Organic Market released in early May 2018 by industry body Australian Organic Ltd, which owns the Australian organic certification mark. The report highlights an industry that is gaining global attention and priming Australian organic producers for opportunities for both export and a strong domestic market.
Key figures from the 2018 Australian Organic Market Report:
1 .The Australian organics market is now estimated to be worth $2.4 billion, having grown by almost 88% since 2012.
2. The global organic market saw 10% growth since just last year, now valued at US$89.7 billion.
3. The growth in the organics market globally is driven by consumer appetite for natural, unprocessed, healthy food, and an increasing consideration for the impact of nonorganic farming on the environment.
4. Two thirds of Australian shoppers said they started buying organics for personal health reasons.
5. 40% of consumers are deepening their purchase of Organics since last year.
6. There has been a 42% CAGR growth in exports since 2012 to $717 million.
7. 6 in 10 Australian households now allocating food dollars to organics every year.
8. The retail domestic market is now worth an estimated Au$700M per annum, contributing to significant jobs growth in the regions.
9. Over one in ten Australians (12%) consider themselves to be ‘highly-committed’ organic purchasers, usually outlaying 40% or more of their food budget on organic food or household products.
10. Millennials in this survey are more health conscious and better educated about the benefits of organic than previous data showed, and 21% of organic purchasers are motivated by a health crisis (in themselves or others) to start purchasing organic food and other goods.
Recently appointed CEO and Managing Director of Murray River Organics, Valentina Tripp says that this is an exciting time to be in the organics market and just the beginning for companies such as Murray River Organics as they increase their market share amongst other leading organic brands.
“Murray River Organics is well positioned to ride the wave of rapid growth in organics. With our business now owning and operating over 4,900 hectares of farmland in the Sunraysia region of Australia, and as one of the largest fully vertically integrated grower processors of certified organic dried vine fruit in the world, we’re in the box seat for capitalising on this growing consumer interest,” says Tripp.
“With demand outstripping availability of organic produce in many categories, the growth of our organic farming footprint will allow us to diversify our organic offering and tap into this unfulfilled demand.”
In addition to its dried vine fruit business, Murray River Organics sources, markets, packs and sells over 6,000MT of certified organic and better-for-you food products annually, leveraging the growth in the organic grocery sector.
Business so is well engrained in the organics market even if consumers don’t always recognise it.
“From our certified organic packing operations just outside Melbourne, Murray River Organics delivers retail packing solutions for the major retailers in Australia. This provides a good grounding for our business, in addition to our plans for strong growth in the domestic market, as we continue to share our story with the country and become a more recognisable brand.”
Tripp says that in addition to this, it is equally important that the business is further building its export market, particularly in Asia.
“While the USA and Western Europe continue to dominate the global organic market, China is now emerging as a key market. With rising household incomes, increased awareness of health and well-being, and a perception that premium and organic brands are more trustworthy, there is strong demand for Australian organic produce. For similar reasons, Japan, Singapore, South Korea and Hong Kong also present exciting opportunities for exports of organics from Australia.”
Increasingly in Australia, and globally, consumers are willing to pay a premium for a brand that delivers transparency and ethical responsibility in its business practices and the products it brings to market.
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