Growing Hunger For Organics in AustraliaAnn
When it comes to organic products consumption, Danish, American, Luxembourger’s, Swiss and Swedish top the list (1). Australians ranked 16th on this list (2) but the needs are growing exponentially among consumers in the land of kangaroos. Australian organic food market, according to the Australian Organic Market Report, was estimated at A$2.4 billion this year and is expected to grow even faster (3).
More than six in 10 Australian households buy organic products every year (4). Among those, millennials and families with young children are the biggest spenders. Millennials, by and large, are often credited for leading the change in many aspects of our daily lives. This is true to organics as well since they’re better exposed to information about the benefits of organics. While price remains the key barriers for many shoppers to switch from mainstream to organic products, millennials often have high disposable income. That said, this group of consumers is leading the shift toward organics spending.
Fruits and vegetables are the two most common items, followed by eggs, dairy products, meat and poultry and cosmetics. 12% Australians, or one in ten, consider themselves to be frequent organic purchasers (5). 40% of organic buyers say that they have increased their spend on organic foods over the past year (6). This growth in spending comes from a few key reasons:
Personal health and wellness for the buyer and their family is probably the biggest driver. Australians care more about their health, which means they think carefully about what they’re putting into their bodies. This is especially true of families with young children. Awareness among parents about the negative effects of pesticides and chemicals used in mainstream products has increased.
Babies, toddlers and young children can easily ingest chemicals because they have thinner, less protective skin than adults. Their bodies are newly developing and thereby can’t detox pesticides or metabolise chemicals as well as adults. Australian millennial parents are increasingly and actively seeking out safer, healthy and nutritious choices for themselves and their families. Organics, with its higher level of transparency, caters to this growing needs. The desire to avoid highly processed foods and artificial ingredients is also a top reason to buy organics.
Increased environmental awareness
Truly health-conscious consumers tend to be knowledgeable and they’re usually on top of the latest news and trends. So they genuinely seek for the healthiest options for themselves and their families. Australian organic shoppers are environmentally-conscious, they do research and understand that conventional farming and producing methods are harmful to the environment where they’re living in. Protecting the environment is actually protecting their health. Outbreaks across the world of food-borne illness and pollution-borne diseases contribute to the shift in consumers’ spending and purchasing habits.
Opting for environmentally friendly farming methods also mean that they’re protecting their health and their community. Organic buyers in Australia usually ask for integrity in the products they buy. They know that eating locally means that food will be fresher and retain more nutrients that consuming those shipped across the globe. Carbon-conscious consumers are certainly strong advocates of the food miles concept. They believe that consuming imported goods is equal to the contribution of more carbon emission. This, in turn, is another motivation for the growing hunger for organics.
Increased accessibility and affordability across the board
Organics are expanding beyond pricey, high-income channels like natural, fresh stores or local farmer markets. Supermarkets, mass merchandisers and grocery chains are now selling organics, making them more widely accessible to a diverse group of consumers. As most major retailers are competing to meet the growing demands of organics, prices have certainly gone down.
Organic purchasers in Australia don’t need to run to the stores to purchase the organics of their choice anymore unless they enjoy talking to the farmers at the local markets. Fresh organics right from local farms can be delivered to their doors in just a few clicks away. It’s clear that digital technologies have facilitated the growth of organics. Online marketplaces and door to door services are blooming. Naturely Shop is one of those with a wide range of healthy living products from organic food, natural skin care to home care. We were featured in Hacker Noon, thanks to Davis Baer of https://www.oneupapp.io for featuring us.
Australia has a huge potential for growth in the organic industry because this is a large continent with the most organically farmland in the world: 17.3 million hectares (7). It’s five times bigger than that of Argentina (3.2 million hectares) who comes second on the list. Much of Australia land has never been fertilised or used chemicals on. This means organic farming in this country has a big advantage. That said, Australia organic producers should be confident that they can not only meet the increasingly growing demands or the locals but also become a big organic exporter to other markets like China, South East Asia or even Europe.