NATURE KNOWS BEST

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 awarenessraising 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. »

COVID-19 restrictions have had a clear and wide-ranging impact on Australian consumers’ eating behaviours and health responses. In response to Work From Home induced weight gain, many consumers are looking for healthier food options. For others, the pandemic has raised their consciousness of broader issues resulting in an increasing interest in vegetarian diets. In some cases, limited access to fast food and more time to cook has refocused their lifestyle on more straightforward and more wholesome eating patterns. The signs are that many of these changes are permanent and represent a stepwise development in the healthy foods market.

Australian consumers during COVID-19 (%) Reduce or remove sugar 17% Eat fewer animal products (e.g. dairy or meat) 17% Give up alcohol 9% Give up caffeine 8%

Read part 2 of the Report in August/September issues.

READ THE FULL REPORT HERE — WWW.BUYAUSMAG.COM.AU

Content source: The Future of Healthy Living produced by the Davidson Group