NZ organic sector sees growth

groceryWorldwide consumer demand has helped the New Zealand organic sector grow by 30 per cent, or 10 per cent a year since 2015, and is now worth $600 million.

The recently released 2018 OANZ Organic Market Report showed retail sales of organic products are growing twice as fast as conventional products, up 8.8 per cent to $245 million.

According to the report, while supermarket, grocery and specialty store organic sales are still small as a percentage of total sales, the results still indicate that Kiwi consumers are taking organic mainstream.

Eight out of 10 Kiwi consumers are buying fresh, frozen or packaged food and beauty products at least fortnightly, an independent research in the report showed, citing care for the health and wellbeing of themselves and their families as the key motivation. Just under half (48 per cent) say they purchase organic products because they are concerned for the environment and sustainability.

Exports of organic products are booming as well, up 42 per cent since 2015 to $355 million, as consumers in Asia, including China, North America and Europe seek out New Zealand organic fruit, vegetables, dairy, meat, wool and wine, and natural beauty and bodycare products.

“The world wants what New Zealand has to offer, and we have the capability to grow our share of the global market where the organic food segment alone is worth EUR85b and is growing at 10.5 per cent a year,” said Brendan Hoare, OANZ CEO.

Hoare said the report articulates a national and global mood for change to natural, ethical, sustainable food and other daily used products.

“Consumers want change, so they can live their values, producers and farmers are seeking change to do what is good for the land they love, and global markets are demanding greater and greater choice as organic goes mainstream,” he said.

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