Light Barriers to Imports
  • The total market size for organic packaged food and beverages in Australia in 2017 is US$633.3mn, ranking it as the 12th largest market in the world by value.
  • Per capita spending on organic packaged food and beverages in Australia is US$25.8, which ranks as the 16th largest spending per capita in the world.
  • The largest company by sales in organic packaged food and beverages is Bellamy’s Australia Ltd, which maintains 10.0% of total sales. Bellamy’s is followed by Groupe Lactalis, and PZ Cussons Plc.
  • Organic packaged food and beverages will see moderate year-on-year growth of close to 5% in 2018. This is slightly lower than the rest of the Australasia region, which will experience approximately 5% year-on-year growth in 2018.
  • Australia maintains a market size for organic packaged food and beverages of US$633.3mn in 2017, which is 1.6% of global category sales.
  • Within the Australasia region, Australia leads in terms of total value sales of organic packaged food and beverages.
  • Australia will experience moderate forecast growth of sales of organic packaged food and beverages, at a 3.5% CAGR from 2017–2022.

QUALITATIVE ANALYSIS

Quick Facts

  • The total market size for organic packaged food and beverages in Australia in 2017 is US$633.3 mn, ranking it as the 12th largest market in the world by value.
  • Concerns about ethical and sustainable food production remain key drivers behind the growth of organic food and beverages in Australia.
  • New organic product developments have boomed in recent years, with organic coffee being a particularly strong growth area.

Market Trends

Competitive Landscape

  • The growth in organic food in Australia is due in large part to the expanding range of various private-label products from Woolworths Ltd, Australia’s largest supermarket retailer.
  • An organic positioning has become an effective means by which small Australian firms can establish a competitive advantage.
  • The organic packaged food and beverage landscape is extremely fragmented. Some leading local manufacturers include Bellamy’s Australia Ltd and Parkers Organic Juices Pty Ltd.

Prospects and Growth Opportunity

  • Organic product sales are projected to continue growing through 2022, but growth rates will be lower than in years past, due in large part to supply constraints.
  • Supply constraints are also expected to increase average unit prices in most product categories in coming years.
  • Sales of organic beverages are expected to continue to benefit from consumers’ focus on health and the environment.

General Health & Wellness Trends

General Economic & Demographic Landscape

Economy: 

  • The Australian economy continues to grow at a moderate but steady pace. A recovery in fixed investment and moderate gains in private consumption offset a slowdown in government spending.
  • Australia’s transition to a strong post-mining economy continues to be somewhat difficult. Annual read GDP growth will average about 2.5% in the medium term.

Population demographics:

  • Australia’s population is steadily rising and reached 24.5 million in 2017.
  • Immigration is an important contributor to population growth. More than a fifth of all Australians were born overseas, and over a quarter of those born in Australia have at least one parent who was born overseas.

Income & expenditure: 

  • Australia’s savings ratio is one of the highest of all developed countries.
  • Disposable income per capita amounted to A$48,066 (US$36,833) in 2017.
  • In the 2017–2030 period total consumer expenditure will grow by an average annual rate of 2.4%.

QUANTITATIVE ANALYSIS

Organic packaged food & beverage data

Data type

Unit

2014

2015

2016

2017

2018

2019

2020

CAGR
(14-17)

CAGR
(17-20)

 

 

 

 

 

 

 

 

 

 

 

Health & wellness products consumption

USD million

   11,640.7

   12,071.3

   12,292.4

   12,612.1

   12,672.8

   12,762.8

   12,883.2

2.7%

0.7%

Organic packaged food and beverages consumption

USD million

        506.4

        570.8

        596.3

        633.3

        658.1

        682.8

        706.4

7.7%

3.7%

Organic packaged food consumption

USD million

        461.5

        523.7

        546.6

        580.5

        602.4

        624.3

        645.0

7.9%

3.6%

Organic beverages consumption

USD million

          44.9

          47.1

          49.7

          52.8

          55.6

          58.5

          61.4

5.6%

5.2%

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

%

            0.0

            0.0

            0.0

            0.1

            0.1

            0.1

            0.1

-

-

Economic & demographic data

Data type

Unit

2014

2015

2016

2017

2018

2019

2020

 

 

 

 

 

 

 

 

 

Total population

million

          23.5

          23.8

          24.1

          24.5

          25.0

          25.4

          25.8

% Middle and upper class of total population

%

            0.3

            0.3

            0.3

            0.3

            0.3

            0.3

            0.3

% Population aged 65+

%

            0.1

            0.1

            0.2

            0.2

            0.2

            0.2

            0.2

% Population aged 0-14

%

            0.2

            0.2

            0.2

            0.2

            0.2

            0.2

            0.2

% Population with higher education degrees

%

            0.3

            0.3

            0.3

            0.3

            0.3

            0.3

            0.3

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

   52,634.3

   52,762.8

   54,016.9

   56,357.6

   56,989.8

   57,572.4

   58,173.8

Consumer expenditure per capita (US$)

USD per capita

   30,145.5

   30,945.1

   31,652.3

   32,358.7

   32,588.1

   32,757.4

   32,970.0

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

USD per capita

     2,977.4

     3,035.1

     3,079.6

     3,123.9

     3,122.8

     3,119.8

     3,129.2

Retailer & City Data

Data category

Rank

City/retailer

Population
(mns)

 

 

 

 

Top cities by population (2017)

1

Sydney

             4.9

Top cities by population (2017)

2

Melbourne

             4.6

Top cities by population (2017)

3

Brisbane

             2.4

Top cities by population (2017)

4

Perth

             2.0

Top cities by population (2017)

5

Adelaide

             1.4

Top grocery retailers by sales (2017)

1

Woolworths

 -

Top grocery retailers by sales (2017)

2

Coles

 -

Top grocery retailers by sales (2017)

3

IGA

 -

Top grocery retailers by sales (2017)

4

Woolworths Liquor Group

 -

Top grocery retailers by sales (2017)

5

Aldi

 -

USDA GATS data

Rank

2017

2016

2015

2014

  Export Value (US$, thousands)

1

Grapes

679.0

Grapes

238.0

Grapes

4,155.0

Grapes

6,427.0

2

Grapefruit

4.0

Cherries

Peach

683.0

Cherries

3,157.0

3

Onions

156.0

Grapefruit

24.0

Oranges

587.0

Lemons

1,084.0

4

Tomato Sauce

528.0

Coffee Roast

180.0

Blueberries

272.0

Oranges

577.0

5

Peppers

Tomato Sauce

137.0

Lemons

237.0

Coffee Roast

438.0

Total

3,001.0

1,887.0

6,388.0

12,032.0

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 Requirements

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 (2017)
USDA's GAIN Report Retail Food Sector Report 2017 (2017) 
USDA's GAIN Report Food and Agricultural Import Regulations and Standards - Narrative (2016)

Definitions

Review definitions of terminology included in this website.