Growing competition and demand in Australia's health and organic food markets

Growing competition and demand in Australia's health and organic food markets
 

26 July 2017

Joss Honour / Business Development Manager / Australia

Organic, natural and healthy were the name of the game for the 450 exhibitors at the recent Naturally Good Expo in Sydney. Exhibitors were a mixture of start-ups and larger players. On display was a huge range of product, including snacks, olives, olive oil, probiotic drinks, a wide range of personal and skin care products, and even edible bugs!

My three key takeaways for New Zealand companies looking to enter the Australian health and organic foods market were the intensity of competition; the growing need for organic certification; and the number of new distributors appearing for organic and natural products.

Competition

For our customers who are making protein snacks, probiotic drinks or skincare ranges, we highlight the intense competitive landscape in Australia. A clear differentiating factor and value proposition for Australia will be essential to achieve cut-through with consumers.

Organic certification

We are seeing an intensification of the importance of Organic Certification. Consumers are increasingly sophisticated, and easily discriminate between credible product claims and those with weak origination. With high levels of consumer choice available, those seeking the healthiest option will be checking ingredients and provenance, and looking for the ACO, Biogro or another trusted certifier’s logo as a differentiator.

This is something we would now recommend that New Zealand suppliers consider carefully. While New Zealanders know and trust the cleanliness of their environment and sustainability of the produce, in Australia, consumers are less trusting. Products claiming to be organic, but which do not show evidence of certification, may have their authenticity questioned.

Distributors

The number of distributors (both small and large) in attendance demonstrated the growing demand for organic and natural production in many sectors.

The Naturally Good Expo is an excellent opportunity to observe the current market players, growth areas and hear from industry experts on many topics through a high quality seminar program. Any NZTE customers already exporting or thinking of exporting natural, organic and health products to Australia would benefit by walking the floor to observe the Australian domestic market. Look out for next year’s show in April 2018.

Joss Honour is a BDM in the NZTE AusPac team. She joined in 2015 after more than 25 years in business creating growth strategies for small, medium and large businesses.