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RISING ORGANIC MARKET GETS Organic products are increasingly finding their place in major grocery and independent grocery stories, with word on the ground being that consumers are reaching for more organic products during the coronavirus lockdown. TBy Nerine Zoio. he market for organic products in Australia is valued at $2.6 billion in the ‘Australian Organic Market Report 2019’, which reveals that domestic sales of certified organic products increased by 15 per cent in 2018. The report cites gains for 18 out of 20 organic product categories in that year, with the strongest rises in skin care/ cosmetics, non-alcoholic beverages and packaged meals. Of the organic consumers surveyed for the report, two-thirds began buying organic products in response to health issues as they looked for alternative lifestyles. According to Australian Organic Ltd (AOL) CEO Niki Ford, the rise in consumer awareness of organic product benefits is evident, with 55 per cent of surveyed organic buyers in this country saying they look for certification logos to check if a product’s organic claims are authentic. She adds that organic consumers are no different to non-organic consumers in their quest for convenience as well as their desire to ensure general health and wellness. Ms Ford predicts there will be no stopping the momentum shown in the report, with continued growth in the organic category a “certainty”. “As consumers are connected every moment of the day to information and influence, an increasing amount are looking for alternatives to what they’ve been purchasing,” she said. “The three strongest considerations for purchase are chemical free, environmentally friendly and additive free, according to the \[report\].” 30 years of organic certification AOL, owner of “Australia’s most recognised certification logo”, the ‘bud’, established an organic certification scheme more than 30 years ago to independently verify that farmers and processors are producing in accord with the bud logo’s dictates. This symbol ensures the integrity of organic products in the marketplace for consumers and is recognised by more than 50 per cent of Australian consumers, Ms Ford says. “This increase in recognition is directly related to the ongoing marketing campaigns that drive awareness of certified organic products,” she said, pointing to the Australian Organic Awareness Month (AOAM) promotion each September. “\[AOAM is\] our largest promotional month each year,” she said. “Last year’s was an enormous success, with all three major supermarkets involved as well as major independent health and supermarkets all around Australia.” Australia has no domestically enforced regulation around the use of the word ‘organic’, and a product from an undefined “natural” source can be considered ‘organic’, Ms Ford says, but certification marks are enforced when products leave Australia. This means that the only way a product can be deemed authentically organic in Australia is through a certification mark such as the bud. The lack of domestic regulation creates confusion for consumers and enables those delivering fake organics to profit from premium prices despite an inferior product. AOL has been lobbying on this issue for the past year at both federal and state government level, with growing support from the federal Agriculture Minister’s office, according to Ms Ford. “AOL drives industry development through its licensee programs and memberships,” she said, “and it’s constantly reviewing how it develops value-add experiences to industry members. In 2018 it launched a consumer membership program, Bud Organic Club, which is offering organic businesses the opportunity to direct market, product sample or survey to over 7000 consumers. “We’ve convened nine sector based advisory committees over the past year to establish what research and development, events and activities the industry requires.” AOL has also restructured its operations during this time, with its strategic approach to the next five years underpinned by key policy and regulatory reforms to support greater market access for certified operators and ensure clarity for consumers when buying organic products. “Domestically enforced regulation around the use of the word organic is our number one priority,” Ms Ford said. In line with this, AOL advises organic companies first and foremost to become certified. “Consumers are smart, and an increasing number are selecting certified organic products because they know they can trust them,” Ms Ford said, adding that organic companies are advised to take heed of what consumers want. “Ask your consumer what they want,” she said. “Don’t produce what you believe they want. Do some research, offer a diverse range and review your range regularly to understand performance. Most businesses have a long list of products that don’t sell.” Companies would also do well to research what government- funded programs, project and grant opportunities are available to support innovation, operations, export and employee training programs. JUN, 2020 RETAIL WORLD 31 ORGANIC