Australia Organic Food Market Size, Share, Report 2025-2033

Market Overview

The Australia organic food market was valued at USD 1.1 Billion in 2024 and is projected to reach USD 2.2 Billion by 2033. The market is expected to grow at a compound annual growth rate (CAGR) of 7.49% during the forecast period from 2025 to 2033. Growth drivers include rising health awareness among consumers, increasing demand for organic products, and easier access through major supermarkets like Woolworths and Coles. Significant retail sector expansion supports this market trajectory.

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How AI is Reshaping the Future of Australia Organic Food Market:

• AI-powered supply chain optimization is enhancing inventory management for organic food retailers, improving product availability in supermarkets and online stores.
• Machine learning algorithms analyze consumer behavior to tailor organic product recommendations, boosting consumer confidence and sales.
• AI-driven quality control and certification processes aid in maintaining rigorous standards, critical for consumer trust in organic labels.
• Government-backed grants and schemes facilitate AI technology adoption in small-scale organic farming, supporting more efficient and sustainable practices.
• AI-enabled precision agriculture contributes to better soil management and pest control without chemicals, aligning with organic farming principles.
• Leading companies are integrating AI in product development and marketing, exemplified by Australian Oilseeds Holdings Limited’s advancements in processing technologies.

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Australia Organic Food Market Growth Factors

Consumer demand has been cited as one of the main drivers of the Australia organic food market. The most recent data from Australian Organic Ltd shows a growth in certified organic products with sales exceeding $2 Billion in 2020 and over 3200 certified products including retailers and growers. However, the trend towards organic foods in Australia is also being driven by an increasing awareness of the health impacts of food choices and environmental protection as it relates to soil quality and the use of renewable resources.

The major supermarket chains in Australia, including Woolworths and Coles, are responsible for putting a meaningful volume of organic food into the market and making it available to consumers. In May 2024, the Australia Retail Association reported that retail sales of the organic category grew by 1.7% year-on-year. Across the food industry, three percent growth was driven by a growing consumer interest in organic food as consumers become increasingly aware of the health and environmental benefits.

Packaged organic convenience foods are an emerging trend. Consumers desire organic ready to eat meals that are convenient and healthful, organic ready to eat cereals, organic nut bars and organic soups. Free of synthetic additives and chemicals, these products are particularly suited to individuals with active or busy lifestyles. The space allocated to these products by supermarkets is increasing. These companies' marketing of simple ingredient labels or certified organic products will grow the organic food sector across all retail segments.

Australia Organic Food Market Segmentation

Product Type Insights:

• Organic Fruits and Vegetables
• Organic Meat, Poultry and Dairy
• Organic Processed Food
• Organic Bread and Bakery
• Organic Beverages
• Organic Cereal and Food Grains
• Others

Distribution Channel Insights:

• Supermarkets and Hypermarkets
• Specialty Stores
• Convenience Stores
• Online Stores
• Others

Regional Insights:

• Australia Capital Territory & New South Wales
• Victoria & Tasmania
• Queensland
• Northern Territory & Southern Australia
• Western Australia

Key Players

• Hewitt
• Australian Oilseeds Holdings Limited

Recent Developement & News

• March 2025: Government and educational institutions launched collaborative programs to support organic certification processes, providing targeted financial assistance to small-scale organic farmers to cover compliance costs.
• May 2025: Australian Oilseeds Holdings Limited expanded its cold-pressing oil production facility, establishing it as the largest in Australia and the Asia Pacific region, enhancing supply capabilities for organic and non-GMO oils.
• August 2025: Australian retail chains reported a further increase in organic food sales, supported by consumer campaigns promoting health and environmental benefits, resulting in wider retail availability and consumer engagement.

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