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Organic Food and Beverage Industry at a Glance

  • Annual sales of organic food in Australia are more than $350 million.
  • Exports of organic foods produced by Australian farmers had increased 60% in the past year.
  • One of the fastest growing retail sectors, organic food and products, has reached a new level with the advent of organic superstores in Australia. Some of the larger stores turn over as much as $2million a year and include cafes and consulting rooms for naturopaths and nutritionists.
  • On 21st October 2002 the US Department of Agriculture regulated organic food and beverage certification and labeling.
  • Organic farming is defined as food that is produced by farmers emphasising the use of renewable resources and the conservation of soil and water to enhance environment quality for future generations. Organic foods is therefore produced without the use of most conventional pesticides and fertilizers and cannot be engineered or irradiated.
  • The global market for organic food and drink is valued at USD 23 billion in 2002. It is anticipated that it will have a market value of approximately AUD$150 billion by 2006.
  • Market growth trends in Europe and USA demonstrate the potential for the Australian industry.
  • In the US, the organic foods and beverages market grew 81 per cent between 2001 and 2004 to reach more than $5.3 billion and growing at a rate of around two million pounds a week. 3 While some organic segments grew more and faster than others, such as fruits and vegetables with growth of 65.5 per cent over the past two years, all eight of the leading organic segments grew far faster than the overall food and beverage market in the US.
  • Consumers are driven to buy organic food because of the taste and quality of the food and consumer concern about food safety. Research shows 53% of people believe organic foods are healthy, 43% believe they taste better and 59% recognise they have no artificial input.
  • In the US, organic products are sold in nearly 20,000 natural food stores and 73% of all conventional grocery stores. In 2000, for the first time, more organic food was purchased in conventional supermarkets than any other venue.
  • 1.5 million pounds annual sales recorded in Britain this year.
  • Of food sold within the British Waitrose chain, 12% is organic.
  1. Biological Farmers of Australia.
  2. 2002 Organic Consumer Trends report (OCTR).
  3. Pro-organic Soil Association.
  4. USDA Economic Research Service, Mintel.