Organic Packaged Food in Australia

PROSPECTS

High unit prices will affect the volume growth of organic packaged food

Despite the encouraging retail value growth, retail volume growth was comparably conservative. Essentially, the labour intensity needed to produce organic food means the price of these foods will be higher – which consumers ultimately cover.

Organic dairy continues to be the main area in organic packaged food

Despite pricing challenges in drinking milk, other organic dairy products and alternatives still continue to be very lucrative areas. This is particularly the case for baby formula and yoghurt, with baby formula recording the highest value growth rate across organic packaged food.

COMPETITIVE LANDSCAPE

Bellamy’s Organic drives growth in both baby food and organic categories

Australian player Bellamy’s Organic Ltd not only holds the largest value share in organic baby food, but it also holds the largest value share in overall organic packaged food. This is a reflection of the intensifying appetite for organic baby products.

Woolworths Ltd in second place

Woolworth’s Macro Organic private label also captured a sizeable share in organic packaged food, largely due to its diversified product line, which caters towards staple foods like olive oil as well as snacking like its macro organic chips. Its success will be further encouraged by the strong presence of its products on store shelves, something that will challenge branded products.

Organic other dairy encourages growth in overall dairy

In other dairy, organic cream recorded the highest retail value growth rate, with Barambah Organics accounting for a large sales share. This has encouraged the growth of organic dairy products and alternatives.

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