The organic market

Revenue from organic farming in Australia is expected to be $733.8 million in 2015-16, up from $695.1 million, an estimated increase of 5.6 per cent.1

According to the same report, 'Rising health consciousness has contributed to the strong performance of organic farming. Other reasons consumers are turning to organic produce include a desire to avoid pesticides, environmental concerns and increasing accessibility'. Growth is expected to continue strongly as consumption is said to become more mainstream, with the two major supermarkets involved in the market.

Organic ProduceWorldwide, estimates of retail values of organic products were reported as having grown from US$15.2 billion in 1999 to $28.7 billion in 2004, $54.9 billion in 2009, and US$80.0 billion in 2014.2

According to the same source, consumer demand for organic products is concentrated in North America and Europe, which comprised over 90 per cent of total global sales, though only one third of total organic farm land.

Much of the organic produce from Asia, Latin America and Africa is exported. In the Australian organic market, fruit and vegetables are important and dairy is increasingly an important sector. Organic beef is mainly exported.

 

1. IBISWorld industry report X0013, as reported on http://media.ibisworld.com.au/2016/01/19/ibisworld-reveals-the-industrie....

2. Sahota, A. (2016), 'The global market for organic food and drink'. In: Research Institute of Organic Agriculture (FIBL) and the International Federation of Organic Agricultural Movements (IFOAM), 'The World of Organic Agriculture – Statistics and Emerging Trends 2016'.