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Quick Stats

Quick Stats

Organics Dashboard From Passport

  • Organic packaged food and beverages showed a slowdown in terms of YoY value growth in 2019, reaching 2.7% post a gain of 3.5% in 2018. A significant factor for this slowdown in growth is the price hike among several subcategories such as organic dairy, organic oils and organic beverages overall.
  • Due to the high level of fragmentation of organic packaged food and beverages in Australia, the market leader Bellamy’s Australia Ltd. recorded a value share of 6.2% in 2019, followed by Lactalis Groupe and PZ Cussons Plc with a value share of 5.6% and 4.8% respectively.

  • Organic packaged food and beverages recorded a market size of US$690.4mn in 2019, with a per capita expenditure of US$27.16.
  • With a global share of 1.4% of packaged food and beverages, Australia maintains a high ranking, especially when compared against countries with a significantly higher population such as India (0.2%).
  • Organic packaged food and beverages are expected to grow on the back of rising health, environmental and sustainable production concerns, recording a value CAGR of 3.2% for the period 2019-2024.
Qualitative Analysis

Qualitative Analysis

Quick Facts
  • Organic packaged food and beverages witnessed positive growth in Australia, with a market value of US$690.4mn in 2019. A key growth driver is consumers’ concern for the environment, combined with a rising interest in sustainable and ethical production methods.
  • Organic beverages witnessed a price increase of 2% in 2019, which contributed to accelerating value growth.
  • Within organic beverages, flavored powder drinks and flavored coffee showed the best performance, particularly for organic chocolate-based flavored powder drinks, which recorded growth of 13% in 2019 in retail current value terms.
Market Trends
  • As chocolate-based powdered drinks and organic coffee are the fastest-growing categories of organic beverages in Australia; organic packaged food is led by organic savoury snacks (excluding nuts, seeds and trail mixes), which recorded current value growth of 14% in 2019. The increasing focus on sustainably produced and natural products is pushing demand for organic beverages. In contrast, for organic packaged food, the main demand drivers are the growing need for healthy snacks.
  • Organic dairy is witnessing a volume decline due to high unit price of milk as well as the limited consumer base of individual households, which are the primary customer segment for organic milk in Australia. However, niche areas of organic dairy such as organic cream and yogurt are witnessing positive demand, as consumers are likely to consume these foods as treats.
  • Organic edible oil is seeing growth in demand, with consumers acquiring awareness on "healthy fats" and consequently, trying various sources of oil to cater to a need for healthier cooking. Melrose Health Supplies leveraged this rising demand for organic oils, by expanding its organic line and widening its share of the Australian market, which witnessed a YoY gain of approx. 4.5% in 2019.
Competitive Landscape
  • Woolworths Ltd (Australia) leads the organic packaged food in Australia with a share of 11.7% in 2019, which is mainly due to its broad organic product portfolio, spanning across several popular categories such as edible oils and dairy, that are offered through its private labels Macro, Macro Organic and Woolworths.
  • The leading organic beverages player in Australia in 2019 was Nerada Tea Pty, offering a variety of organics range and providing a large selection of organic teas such as vanilla, rooibos, peppermint, green tea and many more. Additionally, several of its products have the Fairtrade certification, which is an influential factor in purchasing decisions among Australian consumers.
  • The rising number of consumers looking to buy pure products from a natural source is helping drive demand for organic honey. The category is led by the Pure Harvest brand from Ceres Natural Foods Pty Ltd, with a share of 15.1% of organic spreads in 2019.
Prospects and Growth Opportunity
  • Organic chocolate drinks are expected to continue to perform well in the long term, as more mothers are increasingly focused on providing healthier beverage options for their growing children. Overall, organic chocolate-based beverages are expected to record a 6.3% value CAGR for the period 2019-2024.
  • Local player SPC Ardmona entered into the organic canned vegetables market in 2019 by introducing organic finely crushed tomatoes made of local plants certified by the organic association of Australia. As the first Australian company to launch a processed organic product within canned tomatoes, the company hopes this will lead to further development in processed fruit and vegetables, which could eventually compete for value and volume share with fresh fruits and vegetables, particularly among time-pressed consumers who value convenience and appreciate healthier options.
  • The rise in consumers’ interest of the source of their products combined with parents’ growing concern for a healthy lunchbox beverage helped boost sales for organic 100% juices in 2019 and is expected to help attract a broader audience in the upcoming years. Organic juices are expected to show strong growth, registering a value CAGR of 5.4% for the period 2019-2024.
General Health and Wellness Trends
  • Environmental impact and the extent of sustainability and ethics in the production methods are critical factors influencing purchase decisions among Australian consumers.
  • Consumers are highly explicit about the food products they consume and attempt to educate themselves extensively on their nutritional value. Additionally, where possible, consumers aim to purchase the most natural and purest form of the product as possible to minimize the possibility of consuming food with contaminants.
General Economic and Demographic Landscape

Economy:

  • The Australian economy is growing, at a pace equivalent to its potential. Real GDP growth is expected to witness gains of 2.3% in 2020, post gains of 1.8% in 2019. Primary support drivers are strengthening domestic demand, the recovery of the housing market, looser monetary policy and improved business sentiment.
  • A tightening labour market and increasing wages have put pressure on inflation, which reached 1.6% in 2019, with another 1.9% increase predicted for 2020.
  • Private final consumption in real terms grew by 1.8% in 2019, with a rise of 2.3% is expected in 2020. Key drivers include household disposable income increase, supported by employment growth and a gradual pick-up in wages.

 

Population demographics:

  • The population of Australia is witnessing a steady rise, reaching 25.4 million in 2019, from 19.0 million in 2000. The median age has also seen a steady increase, from 35.4 in 2000 to 37.3 years in 2019, and this is expected to increase, reaching 38.3 years by 2030.
  • Immigration is a pivotal contributor to population growth as more than a fifth of all Australians were born overseas, and over a quarter of those born in Australia has at least one parent who was born abroad. Currently, most Australian immigrants come from Asia.
  • There is also a concern for rapid ageing among the Australian population with the population over the age of 65 currently representing approx. 16.0% of the total population. This number is further expected to reach 18.2% of the total population by 2030.

 

Income & expenditure:

  • Australia registered one of the highest savings ratios among developed economies with savings in 2019, reaching 10.8% of disposable income. However, this share is predicted to dip to 10.6% in 2020.
  • Consumer expenditure in 2019 recorded a per capita value of US$30,652, with an expected increase of 0.5% in 2020. The highest spending for the period 2020-2030 is likely to be in consumer health goods, medical services and education owing to a rising elderly population and the increasing cost of private education.
  • Consumer expenditure is expected to contribute to 55.3% of GDP in 2020, with the share gradually falling over the following decade despite an average annual growth rate of 2.4% for the period 2020-2030.

 

Data

Data

Organic Packaged Food and Beverage Data

Data type

Unit

2016

2017

2018

2019

2020

2021

2022

CAGR
(16-19)

CAGR
(20-22)

Health & wellness products consumption

USD million

11,190.0

11,566.5

12,005.4

12,473.3

12,763.1

13,070.0

13,382.0

3.7%

2.4%

Organic packaged food and beverages consumption

USD million

590.4

623.5

658.0

690.4

713.4

736.3

760.0

5.4%

3.2%

Organic packaged food consumption

USD million

542.6

572.7

603.8

632.5

652.5

672.4

693.0

5.2%

3.1%

Organic beverages consumption

USD million

47.8

50.8

54.2

57.9

60.9

63.9

67.1

6.6%

5.0%

Organic packaged food and beverages consumption as a % of total health & wellness products consumption

%

5.3%

5.4%

5.5%

5.5%

5.6%

5.6%

5.7%

-

 

Economic and Demographic Data

Data type

Unit

2016

2017

2018

2019

2020

2021

2022

Total population

million

24.2

24.6

25.0

25.4

25.8

26.3

26.7

% Middle and upper class of total population

%

25.3

25.3

25.3

25.2

25.2

25.1

25.1

% Population aged 65+

%

15.2%

15.4%

15.7%

15.9%

16.1%

16.3%

16.5%

% Population aged 0-14

%

18.9%

18.9%

18.8%

18.8%

18.8%

18.7%

18.7%

% Population with higher education degrees

%

30.4

30.9

31.4

31.8

32.2

32.5

32.8

Average number of children per household

children

0.6

0.6

0.6

0.6

0.6

0.6

0.6

GDP per capita

USD per capita

48,936.7

51,086.1

52,837.0

54,536.5

55,107.4

55,569.5

56,085.3

Consumer expenditure per capita (US$)

USD per capita

28,664.8

29,308.9

30,173.8

30,675.0

30,620.0

30,784.6

31,016.3

Consumer expenditure per capita on food and non-alcoholic beverages (US$)

USD per capita

2,699.4

2,742.5

2,817.0

2,868.8

2,842.9

2,859.2

2,879.2

 

Retailer and City Data

Top 5 Cities By Population

Data category

Rank

City/retailer

Population
(millions)

Top cities by population (2019)

1

Sydney

5.3

Top cities by population (2019)

2

Melbourne

5.0

Top cities by population (2019)

3

Brisbane

2.5

Top cities by population (2019)

4

Perth

2.1

Top cities by population (2019)

5

Adelaide

1.4


Top 5 Grocery Retailers By Sales

Data category

Rank

City/retailer

Top grocery retailers by sales (2019)

1

Woolworths Ltd (Australia)

Top grocery retailers by sales (2019)

2

Coles Group Ltd

Top grocery retailers by sales (2019)

3

Metcash Ltd

Top grocery retailers by sales (2019)

4

Aldi Group

Top grocery retailers by sales (2019)

5

Australian United Retailers Ltd

United States Department of Agriculture Global Agricultural Trade System Data

Top 5 Export Commodities To Australia

Year

Country

Rank of
Product/Commodity

Product/Commodity

Export Value (US$)

2019

Australia

1

Organic Peach/Nectarin Fresh

1,678,017

2019

Australia

2

Organic Vinegar and Substitutes

667,382

2019

Australia

3

Organic Asparagus Fr/Ch

612,792

2019

Australia

4

Organic Cult Blueberries Fresh

505,365

2019

Australia

5

Organic Tomato Sauce Ex Ketchp

481,267

2019

Australia

Total

Total Organics*

4,813,040

2018

Australia

1

Organic Vinegar and Substitutes

2,250,216

2018

Australia

2

Organic Peach/Nectarin Fresh

1,913,269

2018

Australia

3

Organic Fruit Prep

865,189

2018

Australia

4

Organic Asparagus Fr/Ch

794,995

2018

Australia

5

Organic Tomato Sauce Ex Ketchp

617,126

2018

Australia

Total

Total Organics*

7,906,706

2017

Australia

1

Organic Grapes Fresh

679,462

2017

Australia

2

Organic Tomato Sauce Ex Ketchp

537,616

2017

Australia

3

Organic Cult Blueberries Fresh

492,771

2017

Australia

4

Organic Fruit Prep

435,977

2017

Australia

5

Organic Berries Fresh

300,678

2017

Australia

Total

Total Organics*

3,586,734

2016

Australia

1

Organic Lemons Fr/Dr

464,500

2016

Australia

2

Organic Onion Sets Fr/Ch

374,814

2016

Australia

3

Organic Cult Blueberries Fresh

248,082

2016

Australia

4

Organic Grapes Fresh

237,648

2016

Australia

5

Organic Coffee Roast Not Decaf

179,646

2016

Australia

Total

Total Organics*

1,886,812

Note : Total organics is the sum of all exports in a particular year

 

Definitions

Definitions

Term

Definition

Health and Wellness

Health and wellness is the aggregation of organic packaged food and beverages, fortified/functional packaged food and beverages, naturally healthy packaged food and beverages, better for you packaged food and beverages and food intolerance products.

Organic packaged foods and beverages

This category includes packaged food & beverages that are certified organic by an approved certification body. Organic production is based on:

• A system of farming that maintains and replenishes soil fertility without the use of toxic and persistent pesticides and fertilizers.
• Organic food & beverages are minimally processed without artificial ingredients, preservatives or irradiation.
• The use of GMOs (Genetically Modified Organism) is prohibited. “Certified Organic” means the item has been grown according to strict uniform standards that are verified by independent state or private organizations.
• Depending on the country, such products are called ‘organic’, ‘biological’ or ‘ecological’: For organic products to be included under Euromonitor definitions, the organic aspect needs to form part of positioning/marketing of the product. This is an aggregation of organic baby food, bakery, confectionery, dairy, ice cream, oils and fats, ready meals, rice, sauces, dressings and condiments, snack bars, soups, spreads, sweet and savory snacks and other organic food.

Note that fresh food products or individual ingredients are not included in this definition.

Compound annual growth rate (CAGR)

The compound annual growth rate (CAGR) is the average annual growth rate over a specified period of time. For instance, the CAGR consumption of from 2016 – 2019 will be the average growth rates across these three years.

USDA GATS data clarification

The data presented in table 2.4 represents the dollar values of the top 5 organic commodities as well as of the total organic exports of the trade partner for the period 2016-2019 as per the United States Department of Agriculture’s Global Agricultural Trade System, a database consisting of international agricultural, fish, forest and textile products trade statistics dating from the inception of the Harmonized coding system in 1989 to present.

Policy Information

Policy Information

Government Agency(s) / Competent Authority

Authorized Government Agency(s):

Australian Quarantine and Inspection Service (AQIS)

Australian Competition and Consumer Commission (ACCC)

The Role of the ACCC

The ACCC is a statutory authority responsible for ensuring compliance to the Trade Practices Act 1974 (TPA). While it is not the ACCC's role to police the Australian Standard as it is a voluntary measure, the ACCC sees the standard as assisting it in two key areas of its enforcement activity.

The first is ensuring that where a representation is made about complying with a standard, this representation is not misleading and deceptive or likely to mislead or deceive.

The second area in which the ACCC may reference the standard is as an indicator of the requirements of organic production more broadly if, for instance, a claim is made that a product is ‘organic' without any reference to a specific standard.

Agency(s) Contact Information:

Department of Agriculture and Water Resources

Phone: 1800 900 090
Website

Australian Competition and Consumer Commission

Offices located Adelaide, Brisbane, Canberra, Darwin, Hobart, Melbourne, Perth, Sydney, and Townsville.

Telephone: +61 2 6243 1305
Website

Organic Regulations and/or Standards

Name(s) of Regulation and/or Standard:

Australia's National Standard for Organic and Biodynamic Produce provides Australia's main consumer regulatory authority the Australian Competition and Consumer Commission (ACCC) with a platform for enhanced consumer protection of organic product using the existing Trade Practices Act 1974 (TPA).

Date of Implementation: 2009

Regulation and/or Standard Scope:

The Australian Standard is a base or reference standard. This means that Certifiers can still keep their own standards or use Australia's National Standard for Organic and Biodynamic Produce, which was initially developed for products exported from Australia.

The Australian Standard outlines the minimum requirements to be met by growers and manufacturers wishing to label their products 'organic' and 'biodynamic'. It establishes an agreed set of procedures to be followed for the production, preparation, transportation, marketing and labeling of organic and biodynamic products, including food and processed food.

Imported Products

Australia is very liberal in its acceptance of organic standards and products from other countries. If the imported organic products at least comply with the Australian Standard, no certification or additional organic import requirements are needed.

Certification and Accreditation

Certification:

The Department of Agriculture maintains list of certification bodies it has approved; more details about the approval process are available.

Accreditation Method:

Government

Accreditation:

Department of Agriculture and Water Resources

Additional Information

Reference Standards:

On the third country list of the European Union.

Additional Information:

Australia's Department of Agriculture's information about organic products, including links to food labeling requirements for all food products.

USDA's GAIN Report Exporter Guide (2019)
USDA's GAIN Report Retail Food Sector Report (2019)
USDA's GAIN Report Food Service Report (2019)
USDA's GAIN Report Food Processing Ingredients (2020)
USDA's GAIN Report Food and Agricultural Import Regulations and Standards Annual Country Report (2020)
USDA's GAIN Report Food and Agricultural Import Regulations and Standards - Narrative (2016)
USDA's GAIN Report Food and Agricultural Import Regulations and Standards Export Certificate Report (2019)