Organic dairy is experiencing stable demand as Australians become increasingly conscious of food origins. Consumers are visibly making ethical and conscious decisions around food choices and are inclined to lean towards products that claim to be free from chemicals and preservatives.
Permissible indulgence and snacking have grown stronger in Australia as consumers switched towards healthy snacking during home seclusion. The strong performance of organic savoury snacks can be attributed to the rising popularity of organic nuts, seeds and trail mixes which are set to record another year of dynamic growth in 2021.
Foodservice closures due to lockdown restrictions led to increased home consumption of packaged food, including consumer demand for organic soup as a convenient meal option as Australians attempted to balance professional and personal life at home in 2021. Consumers are searching for convenient choices that taste homemade and are healthy for families due to their organic positioning and use of fresh ingredients with minimal processing.
There has been a visible shift towards natural, less processed products which offer specific nutritional benefits as consumers increasingly view food as medicine. The Organic Milk Company, a collaboration of the largest network of organic dairy farmers in Australia, has launched O3 milk, which is produced from ethical, certified organic farming practices to deliver dairy that is free from genetically-modified ingredients, chemicals, pesticides, hormones and antibiotics.
Organic producers are facing challenges to uphold product quality while remaining price-competitive as consumer spending power dips given the economic repercussions of the strict lockdowns in Australia. Supporting Australian producers and manufacturers is gaining momentum as local businesses struggle to bounce back after the lockdown restrictions started to ease.
Volume sales of organic packaged food are predicted to rise over the forecast period, as an increasing number of new products emerge in line with greater demand. This is turn will continue to expand the availability of organic products well beyond health specialty stores and into mainstream channels such as supermarkets, hypermarkets, independent small grocers and discounters.
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Understand the latest market trends and future growth opportunities for the Organic Packaged Food industry in Australia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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Organic Packaged Food
Certified organic products are those which have been produced, stored, processed, handled and marketed in accordance with precise technical specifications (standards) and certified as "organic" by a certification body such as the Soil Association in the UK, the European Union or the US Department of Agriculture. It is important to note that an organic label applies to the production process, ensuring that the product has been produced and processed in an ecologically sound manner. The organic label is therefore a production process claim as opposed to a product quality claim. Note: For organic products to be included, the organic aspect needs to form a significant part of the overall positioning/marketing of the product, including the organic certification label in the packaging. For product category definitions please refer to the definitions section (can be found under the "Help" section on Passport) for the respective system: Packaged Food, Hot Drinks, Soft Drinks.
See All of Our DefinitionsThis report originates from Passport, our Organic Packaged Food research and analysis database.
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