Nature knows best- healthy food report

While the price premium and supply have restricted its growth,
organic food currently makes up 5% of total food and groceries;
and 70% of Australians occasionally buy it. To some extent, the
imposition of a price premium is appropriate given the generally
higher production costs associated with organic products, and that
51% of Australian consumers are willing to pay more for a product
containing “all-natural ingredients”.

The organic market is
estimated to be growing
at 20% per annum, and
domestic consumption
is predicted to reach
$2.3 billion by 2030.
Experts believe
that there is an
opportunity for the
Australian market to
head towards the 13%
to 15% share it holds
in Germany. Specific
organic product lines that
have seen a substantial
rise in popularity in recent
times include carrots, baby
spinach, zucchini, broccoli
and Gala apples. A case study
in the wine industry suggests
that growth in organic food
consumption can be encouraged by
a combination of increasing taxes on
less environmentally-friendly wines
and the simultaneous awareness raising
promotion of organic wines. Notably,
the combination of these two strategies
is more successful than introducing
them separately. The researchers
estimated that once organic
wine diffusion in the
general population
reaches 35%, the
growth rate will
accelerate further as
it becomes a widely
accepted purchase option


Read full report here

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