Taste for organic surges on back of pandemic

June 15 2021 - 1:00am
Taste for organic surges on back of pandemic

MILLIONS of consumers have turned to organic food since the commencement of the COVID-19 pandemic and more than half of all Australian shoppers have purchased certified organic in the last year, according to the new Australian Organic Market Report 2021 released by Australian Organic Limited today.

AOL chief executive officer, Niki Ford, said the dual health and wider environmental benefits of organic production, which is free from synthetic chemicals, pesticides and fertilisers, was driving the sector's growing consumer base.

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"In Australia, consumers are continuing to prioritise personal and environmental health, and this has been brought to front of mind by recent climatic events and the global pandemic," Ms Ford said.

"Over the course of the past year we've seen around nine million Australian households purchase organic food during this incredibly challenging time."

The report uncovered that, Australians were encouraged by the benefits of eating organic food, with 62 per cent of shoppers citing personal health as a motivator for their first purchase of organic produce, while 45 per cent alluded to environmental considerations.

The research shows more than 80pc of food shoppers in Australia are receptive to buying an organic product, with 60 per cent currently purchasing organics at a low level, but showing a high interest in fresh organic produce.

And 37pc of established organic shoppers increased the amount of organic products they purchased in the past year, with the average household spend on organic increasing 12.8 per cent since 2019.

Ms Ford said the organic industry has shown significant growth in the face of a turbulent year.

"The Australian certified organic industry continues to expand and prosper despite the enormous challenges faced over the past two years," Ms Ford said.

"Through drought, bushfires, floods and most recently the pandemic, the industry is unwavering and continues to grow at an impressive rate.

"There are now 4,233 organic operations in Australia, displaying steady long-term growth of 38 per cent since 2011."

Internationally, the United States continues to be the top international market for Australian organic products, representing 33pc of all exports in 2020, with 95pc cent of organic meat exports destined for the US.

However, concerningly for the domestic industry, the vast majority (88pc) of food shoppers said they did not know there is currently no single legal definition for use of the term 'organic' in Australia.

Compounding this issue is the fact that almost one third of shoppers who purchased an organic product in the past year believe they have previously been misled by organic claims on product packaging, giving further urgency to the need for a mandatory domestic standard for use of the term 'organic' in Australia.

Other key findings from the Australian Organic Market Report 2021 include:

  • . The most engaged organic shoppers are more likely to live in cities
  • . 63pc of all shoppers believe 'chemical-free' is the primary perceived benefit of organic products
  • . 48pc of all shoppers believe 'additive-free' is a benefit
  • . Supermarkets accounted for 90 per cent of organic sales, with the major companies (Woolworths, Coles, Aldi) capturing 77pc of market share.

The Australian Organic Market Report, which examines the industry's more than $2 billion annual contribution to the nation's economy, has this year adopted a more robust research methodology, in collaboration with the University of Melbourne and research partners Euromonitor International, Mobium Group and NielsenIQ.

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