Imports account for approximately 40 percent of all organic retail sales. Most imports of organic fruit and vegetables and almost all imported milk products are sourced from New Zealand to meet shortfalls in domestic supply.
The range of products available in the organics and green market space is diverse, with major retailers selling over 500 different organic grocery lines. 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 key drivers of growth in the market are:
- Rising disposable incomes
- Greater health consciousness
- Increasing environmental awareness
Demand in Australia has also been supported by the increasing availability of organic and green products. Woolworths and Coles are now stocking greater amounts and wider ranges of organics, thereby increasing the convenience of purchasing organic products.
Regulations
In 2009, Standards Australia released the Australian Standard (2009), which outlines requirements to be met by growers and manufacturers wishing to label their products ‘organic’ and ‘biodynamic’ under this standard.
While all organic standards in Australia are voluntary, any organic claims, whether they reference a standard or not, must be able to be substantiated in order to protect consumers from dishonest manufacturers.
Organic certification is performed by seven certification agencies, which are accredited by the Australian Quarantine and Inspection Service (AQIS), under the National Standard for Organic and Biodynamic Produce.
Organic certification by New Zealand certification agencies is generally recognised and well regarded in Australia, but should be confirmed with your New Zealand certification agency.
Opportunities
- Demand currently outstrips supply in the Australian organics market.
- Domestic supply of consistent, quality product remains a challenge in Australia, particularly in drought affected areas creating opportunities for suppliers who can guarantee this.
