• Remedy Drinks Ltd leads the organic market in Australia, with a value share of 17.3% in 2023, followed by Fonterra Cooperative Group Ltd, with a value share of 10.2%, and Soulfresh Global Pty Ltd, with a share of 6.8%.
• Australia ranked 11th globally in terms of organic market size in 2023, with a value of US$1,095.0 million. Growth has stagnated in recent years, and sales declined in constant terms in 2023, by 1.6%. However, growth is predicted to recover over the forecast period.

• Organic products in Australia represented roughly 1.8% of global demand in 2023, and recorded per capita expenditure of US$41.1, below their regional neighbor, New Zealand, where per capita expenditure stood at US$67.0 in the same year.
• The Australian market for organic products is projected to increase by a CAGR of 3.3% over the forecast period 2023-2028 at constant 2023 prices and fixed US dollar exchange rates, reaching a value of US$1,286.4 million by 2028.

• The Organic Packaged Food and Beverages category in Australia registered value growth of 3.9% in 2023 in current price terms, to record a market size of US$1,095.0 million.
• Over the 2019-2023 review period, the Organic Packaged Food category registered a CAGR of 6.4% in current price terms. For the forecast period (2023-2028), a CAGR of 2.7% in constant price terms is predicted.
• Organic Beverages grew historically at a strong 7.7% current CAGR, and growth is predicted to stand at a 4.3% constant CAGR over the forecast period.
• Growth in Organic Packaged Food over the 2019-2023 period was driven primarily by Organic Snacks, which recorded a solid 11.7% current CAGR. Growth is expected to remain strong over the forecast period, with a constant terms CAGR of 5.1%.
• Within Organic Beverages, Organic Hot Drinks saw the fastest growth between 2019 and 2023, with a current terms CAGR of 10.8%, while Organic Soft Drinks are forecast the fastest growth between 2023 and 2028, with a constant terms CAGR of 4.5%.

• Consumers are expected to look at more health-focused websites and social media platforms in the future, which will help them to better understand what a healthy diet looks like. Organic products are not only more nutritious and contain lower level of chemicals, but they are also better for the environment, as they are grown without the use of synthetic fertilizers, herbicides or other chemicals. These attributes will drive demand for the organic segment amongst sustainability-minded shoppers, which is a growing segment in Australia.
• Within Packaged Drinks in Australia, there is a shift towards sophistication and health consciousness, driven by consumer demand for more mature and nuanced beverage options. Consumers are increasingly moving away from traditional soft drinks geared towards younger audiences, seeking indulgent drinks with complex flavor profiles. Remedy Drinks exemplifies this movement with the launch of its Small Batch kombucha range, offering handcrafted flavors such as Lychee & Strawberry, Yuzu & Mandarin, and Double Ginger & Lime. These drinks deliver a refined balance of natural tea polyphenols and organic acids, appealing to consumers seeking both indulgence and health benefits.
• Sustainability also plays a crucial role, as consumers increasingly demand clean labels, and value transparency from players committed to sustainable practices. This demand is fueling the rise of organic products, with consumers gravitating towards offerings that emphasize ethical sourcing. Additionally, sustainability fosters a growing interest in plant-based options in categories like Hot Drinks, exemplified by emerging players like Pana Organic, which competes with organic vegan flavored powder drinks.

• Fonterra Cooperative leads the Organic Packaged Food category, with a market share of 15.7% by value in 2023. The New Zealand cooperative has consolidated its position in the market with brands such as Western Star butter and Australian Dairies milk powder products, which are produced locally.
• Remedy Drinks Ltd leads the Organic Beverages market with a substantial 49.7% market share in 2023, having gained 7.7 percentage points since 2019. Launched in 2012, Remedy was one of Australia’s first commercial kombucha companies, and remains one of the few in the world offering kombucha that can be stored at room temperature. The company now boasts a wide range of products, from kombucha and beer to energy drinks and immune shots. strategically combining health-orientated attributes such as being sugar-free and organic, with appealing fruity flavors.

• Organic teas are expected to see among the largest increases in market size over the forecast period, with Organic RTD Tea increasing its sales by US$57.5 million, to reach a US$319.0 million market size at constant 2023 prices in 2028. The success of Organic RTD Teas is partly explained by the success of Remedy Drinks, while other categories of tea, like Organic Fruit/Herbal Tea, are also expected to continue growing, due in part to rising consumer awareness of the benefits offered by products from companies like Lipton Teas & Infusions.
• Within the Organic Snacks category, Organic Ice Cream stands out as one of the fastest growing segments, with a projected constant terms CAGR of 18.4% between 2023 and 2028. Pana Organic is one of the leading brands in this space, offering a line of organic dairy-free ice creams. Another notable competitor is CO YO, which has a similar positioning but focuses exclusively on dairy-free yoghurts made from a blend of organic coconut milk and oat milk.

• Influenced in part by its close neighbor, Australia has now proposed the development of a National Organic Standard, aiming to establish a legal definition for “organic”, similar to the approach taken by New Zealand. This legislation has been long awaited, with Australia being the last OECD country without a legal definition for organic products. Although the bill to establish the standard was introduced in 2024, it has remained under review by government authorities and legislators, with no clear timeline for its adoption.
• Foods that are beneficial for brain health and memory are projected to see growing demand over the forecast period, as consumers are becoming increasingly concerned about the impact of poor dietary habits on brain health and memory. In addition, some consumers are likely to focus on supporting their cognitive health as they age. This trend is predicted to drive demand for food products that are rich in vitamins and good for digestive health, as these claims are often associated with improving brain health and memory.

Economy:

• Australia’s economy is projected to experience moderate real GDP growth of 1.8% in 2025. The subdued nature of this growth will be due partly to uncertainty in global trade, influenced by the imposition of tariffs by the US. However, as consumption gradually recovers and public demand remains stable, GDP growth is predicted to improve slightly, averaging around 2.3% annually between 2026 and 2028.
• Inflation in Australia averaged 3.2% in 2024, and is predicted to drop further to 2.5% in 2025, meeting the Australia’s Reserve Bank inflation target.

Population demographics:

• Australia’s population reached 27.1 million in 2024, and is projected to grow by 1.5% to 27.5 million in 2025. While the country’s fertility rate has declined slightly over the past decade, it has remained relatively stable at around 1.6 children per woman in recent years, and is predicted to remain at that level.
• The median age in Australia was 38.5 years in 2024, an increase of 0.6 years from 2020.

Income & expenditure:

• The savings ratio in Australia reached 11.5% of disposable income in 2024, and is projected to remain at a similar level over the forecast period.
• Consumer expenditure per capita grew by 3.3% in 2024 in current US dollar terms. In constant US dollar terms, it is projected to grow at an average annual rate of 0.8% over the period to 2028.
• Disposable income per capita in Australia was US$38,489 in 2024, and is predicted to decline by 1.1% in 2025, continuing a multi-year trend of real terms income contraction. This decline has been driven in recent years by elevated inflation, rising mortgage interest rates, subdued business confidence, and slowing economic growth. However, a slight recovery is anticipated over the forecast period, with disposable income projected to grow at an average annual rate of 0.7% in constant prices between 2025 and 2028.

¹ Health and Wellness Definition: 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.

The above definition and more can be referenced from the definitions table at the end of the report.

² Economic and Demographic Data has been updated to reflect final 2024 estimates, therefore using 2024 as the base year for exchange rates and prices. 

³ Historic current prices and forecast constant 2024 prices.

Top 5 Cities By Population

Top 5 Grocery Retailers By Sale

Top 5 Export Commodities To Australia

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

Authorized Government Agency(s):

Department of Agriculture, Water and the Environment 

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, Water and the Environment 

Telephone: 1800 900 090
Telephone (from outside Austrailia): 61 3 8318 6700 
Website

Australian Competition and Consumer Commission

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

Telephone: +61 2 6243 1305
Website

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; Updated: 2022

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.

Australia has an organic equivalence arrangement with Japan to export organic plant and plant products (excluding wine), organic livestock products and organic processed foods certified to the Australian National Organic Standard.  Taiwan and Australia have a bilateral organic equivalency arrangement for crops, livestock, aquatic plants and processed foods which, however, excludes bee products and organic agricultural products not produced or made in Australia.

Organic or bio‐dynamic produce which is imported into Australia can be labelled as meeting this Standard provided the produce satisfies the following requirements: 

• a competent authority and/or government approved certification organization has issued export documentation; stating the consignment has been produced under a system that is equivalent to this Standard; or 
• the certification organization is recognized by the importing country competent authority; and 
• was subject to a regular system of inspection by a competent authority approved certification organization; and 
• does not contain any substances not permitted by this Standard.

Imported organic or bio‐dynamic produce can be labelled as meeting this Standard provided that the operator (importer) is certified, and the imported products complies with above. 

An original export certificate issued by a competent authority or government approved certification body is required for each consignment. The export certificate must accompany the organic or bio‐dynamic consignment into Australia.

Imported Food Legislation

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, Water, and the Environment

International Accreditation New Zealand (IANZ) Joint Accreditation System of Australia and New Zealand (JAS-ANZ). Hyper-link for Joint Accreditation System.

Reference Standards:

On the third country list of the European Union.

Additional Information:

U.S. International Trade Administration

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

USDA's GAIN Report Exporter Guide (2023)
USDA's GAIN Report Retail Food Sector Report (2022)
USDA's GAIN Report Food Service Report (2022)
USDA's GAIN Report Food Processing Ingredients (2022)
USDA's GAIN Report Food Service - Hotel Restaurant Institutional (2021)
USDA's GAIN Report Food and Agricultural Import Regulations and Standards Annual Country Report (2023)
USDA's GAIN Report Food and Agricultural Import Regulations and Standards Export Certificate Report (2023)