Australia Organic Farming Market Size, Share Analysis and Forecast Report (2025-2034)

Australia Organic Farming Market Trends

The growth of the Australia organic farming market is driven by the sector’s focus on environmental sustainability, improving soil health and reducing degradation by avoiding harmful chemicals and synthetic fertilisers. Organic practices foster biodiversity and enhance water conservation by improving soil structure. Consumers benefit from reduced exposure to harmful chemicals, leading to safer produce. Over time, organic farming improves soil fertility and resilience, resulting in more productive farming systems. Australian agtech startups are advancing carbon capture through innovative soil monitoring, aiding in climate change efforts. Australia aims for a 43% reduction in emissions by 2030, positioning organic farming as a key player in carbon solutions.

The demand for organic produce in the Australia organic farming market is driven by its nutritional benefits, the absence of harmful chemicals, and its GMO-free status, making it a healthier option for consumers. Growing demand both locally and internationally provides farmers with access to profitable markets, with organic products commanding higher prices and improving profitability. Organic practices, such as crop rotation and composting, reduce the carbon footprint while supporting local economies and reducing dependence on large-scale industrial agriculture. The Australian Department of Foreign Affairs and Trade has allocated USD 221.8 million in its 2024-25 official development assistance budget, recognising the importance of climate-resilient agriculture to improve nutrition and sustainable farming practices.

Australia Organic Farming Market Growth

The Australia organic farming market revenue is driven by its focus on sustainable practices that ensure long-term land productivity without depleting resources. Organic methods reduce the need for synthetic pesticides, promote ecological balance, and improve climate resilience through better soil health. The market's growth also creates job opportunities in farming, processing, and distribution, while improving animal welfare through free-range systems and limiting the use of antibiotics and hormones. In April 2024, AgriFutures Australia launched a funding initiative to help farmers transition to organic practices, enhancing sustainability and increasing the supply of high-quality organic products for local and international markets.

The Australia organic farming market development is further supported by regenerative practices like cover cropping and agroforestry, which help restore degraded land. Organic farming also reduces water pollution by eliminating harmful chemicals and bolsters food security through diverse, local production systems. By fostering healthier rural communities and promoting connections with nature, the market responds to growing global demand, expanding export opportunities. According to reports, agriculture accounted for 2.7% of Australia's GDP in 2022–23, with 55% of the country's land used for agricultural purposes as of December 2023.

Australia Organic Farming Market Insights

• In 2022, the Department of Agriculture, Water, and the Environment reported that most organic sales were within Australia, with around 60% sold to retailers and 58% sold directly to consumers.
• In 2022, the largest proportion of respondents, including farmers, producers, processors, and certified individuals, reported an annual gross income between USD 100,000 and USD 499,000.
• More than 80% of farmers, producers, processors, and certified organic operators indicated they had been producing organic products for at least five years.

Industry News

November 2023

The National Farmers’ Federation (NFF) revealed a new partnership with Australian organic certification bodies to enhance organic food production. This collaboration will provide Australian farmers with greater access to organic markets, while also encouraging sustainable farming practices nationwide.

June 2023

Woolworths launched the Woolworths Organic Growth Fund, a $30 million, five-year initiative offering interest-free loans and grants to support organic fruit and vegetable growers across Australia. The fund aims to strengthen Woolworths’ position in the expanding organic market and contribute to the growth of the industry.

Australia Organic Farming Market Drivers

Expansion of Organic Certification and Standards

Improved certification systems and standardisation are key trends in the Australia organic farming market, enhancing consumer trust and expanding market access. Organic certification, managed by organisations such as Australian Certified Organic (ACO), guarantees that products meet stringent standards, which is essential for both domestic and international markets. These standards prioritise environmental sustainability, ethical production, and chemical-free practices, aligning with the growing demand for eco-conscious products. The emphasis on clear, transparent labelling and certification has bolstered Australia's reputation as a trusted organic producer, particularly in export markets like Asia and Europe. In 2021, the Australian Organic Industry Export Strategy was introduced to increase organic product exports, helping farmers meet global standards and unlock new trade opportunities.

Technological Innovation in Organic Farming

Technological advancements are playing a crucial role in the growth of the Australia organic farming market. Innovations such as precision farming, drone technology, and AI-powered analytics are assisting organic farmers in maximising crop yields, enhancing soil health, and managing pests without the use of synthetic chemicals. These technologies improve operational efficiency while maintaining the principles of organic farming. Moreover, the adoption of soil sensors and weather forecasting tools promotes sustainable water management and more efficient farming practices. As Australian organic farms embrace these innovations, they can scale operations, boost productivity, and stay competitive in the expanding organic market. Hort Innovation, a not-for-profit R&D organisation, supports the horticultural industry, including organic farming, by funding research aimed at improving sustainability, productivity, and profitability, with a focus on agri-tech and sustainable farming methods.

Opportunities in the Australia Organic Farming Market

The Australian government is shaping the Australia organic farming market dynamics and trends by offering financial incentives, grants, and programmes designed to support farmers in adopting organic practices. Initiatives like AgriFutures Australia’s organic farming projects, alongside funding from state and federal agencies, are encouraging more farmers to adopt organic practices. This support covers research, education, sustainable farming techniques, and access to export markets, including efforts to improve certification and regulatory standards. Government involvement plays a crucial role in driving growth within the organic farming sector and enabling Australian producers to meet the rising demand for organic products. The National Landcare Program (NLP) further promotes sustainable farming, including organic methods, by funding projects focused on land and water management, reducing degradation, and improving biodiversity. In the 2022-2023 federal budget, significant funding was allocated to enhance environmental sustainability on organic farms.

Market Restraints

The Australia organic farming market faces several challenges that hinder its growth. High certification costs are a significant barrier, especially for small-scale farmers, as they must undergo expensive and rigorous certification processes. Labour shortages and the need for specialised skills further complicate the situation, with fewer workers trained in organic farming methods. Limited access to technology, such as precision agriculture tools, also affects smaller operations.

Market competition from cheaper imported organic products makes it difficult for Australian farmers to compete, while weather variability and climate change increase unpredictability and affect crop yields. Additionally, a lack of consumer awareness about the benefits of organic produce and inefficiencies in the supply chain further hinder market growth.

Australia Organic Farming Industry Segmentation

“Australia Organic Farming Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Farming Type

• Integrated Organic Farming
• Pure Organic Farming
• Others

Market Breakup by Products

• Cereals and Grains
• Vegetable
• Fruits
• Oilseeds and Pluses
• Others

Market Breakup by End Use

• Organic Farms
• Agriculture Companies

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Australia Organic Farming Market Share

By Farming Type Insights

According to the Australia organic farming market analysis, the market is primarily driven by integrated organic farming, which combines crop production with livestock management in an environmentally friendly way. This approach promotes biodiversity, reduces synthetic chemical use, and enhances soil fertility. It supports sustainable farming, mitigates climate change, and builds resilience in agricultural systems, improving productivity while maintaining ecological balance. In September 2024, AgriCoop, a major agricultural cooperative, expanded its integrated organic farming program in New South Wales, encouraging local farmers to adopt more sustainable, eco-friendly practices for crop and livestock production.

The demand for the Australia organic farming market is further bolstered by pure organic farming, which prioritises natural processes and avoids synthetic pesticides, herbicides, and fertilisers. This results in healthier soils, reduced environmental impact, and high-quality food free from chemical residues. It promotes sustainable practices, enhances biodiversity, and ensures long-term agricultural health. In March 2024, The Organic Grain Company (OGC) reported an increase in demand for Australian organic grains like oats, wheat, and barley, and plans to expand production to meet both domestic and international demand.

By Products Analysis

According to the Australia organic farming market report, the market is currently led by organic vegetables, which offer significant health benefits due to the absence of synthetic pesticides and fertilisers. As consumers become more attracted to pesticide-free produce, demand has surged. Australian Organic Ltd. has reported a 12% increase in organic vegetable sales in 2024, reflecting this growing trend. In May 2024, Flavorite launched a new range of organic mixed vegetables, including tomatoes, cucumbers, and capsicums, designed to meet the rising demand for certified organic fresh produce, offering consumers a healthier and more sustainable alternative.

The growth of the Australia organic farming market is further supported by the popularity of organic fruits. For instance, strawberries from Sunny Ridge, grown without chemical inputs, offer enhanced taste and nutritional value. The farm's organic fruit production grew by 20% in 2024, driven by increasing consumer demand for healthier, environmentally friendly options. In July 2024, Australia’s Own Organic launched a new range of organic fruit juices made from Australian-grown apples, oranges, and pears, catering to health-conscious consumers seeking 100% natural, pesticide-free beverages.

By End Use Insights

The demand for the Australia organic farming market is rising as organic farms promote healthier soil, biodiversity, and sustainable farming practices. By reducing the use of chemical pesticides and fertilisers, they benefit both the environment and consumer health. Organic farms also produce high-quality products, fueling the growing demand for eco-friendly, pesticide-free food. In 2024, Kialla Pure Foods, a leading Australian organic grain company, launched a new line of organic gluten-free flour to meet the increasing consumer demand for healthy, allergen-free alternatives in the organic food sector.

The growth of the Australia organic farming market is further supported by agriculture companies that focus on organic practices, driving sustainability and innovation. These companies support local economies, enhance supply chain transparency, and meet the rising demand for organic products. They also improve farm resilience to climate change by adopting regenerative farming practices. In 2024, the Australian government launched the Organic Industry Development Program, offering grants and subsidies to organic farmers for infrastructure and research to strengthen Australia’s organic exports and market sustainability.

Australia Organic Farming Market Regional Insights

New South Wales Organic Farming Market Overview

New South Wales (NSW) remains a leader in Australia's organic farming industry, with notable growth in both organic vegetable and livestock production. In 2024, the state has 2,200 certified organic farms, with organic farm acreage increasing by 15%. NSW’s diverse climate allows for year-round organic farming, according to the NSW Department of Primary Industries, 2024.

Queensland Organic Farming Market Trends

According to the Australia organic farming industry analysis, Queensland's organic farming market is experiencing consistent growth, especially in the production of organic tropical fruits and grains. In 2024, organic farm certification rose by 10%, driven by strong international export demand. Key market trends include a focus on climate resilience and sustainable farming practices in Queensland’s organic sector, according to the Queensland Government – Department of Agriculture and Fisheries, 2024.

Western Australia Organic Farming Market Dynamics

Western Australia (WA) is becoming a significant player in organic grain production, including wheat and barley. WA's organic farming sector is expanding, with a focus on export opportunities in Asia. In 2024, organic farm acreage increased by 12%, driven by demand for sustainable crops, according to the Department of Primary Industries and Regional Development (WA), 2024.

Competitive Landscape

The Australia organic farming market key players grow a diverse range of pesticide-free fruits, including apples, pears, citrus, and stone fruits, all cultivated using certified organic farming practices. Their focus on soil health, biodiversity, and sustainable farming methods guarantees high-quality produce while minimising environmental impact. The company serves both domestic and international markets, supplying major supermarkets, organic food retailers, and direct-to-consumer outlets.

Key Industry Players

Sustainable Farming Solutions Pty Ltd: Based in Sydney and established in 2015, Sustainable Farming Solutions Pty Ltd provides innovative, environmentally responsible solutions for organic farming. They specialise in soil regeneration and sustainable crop management, partnering with farmers to implement regenerative agricultural practices that promote environmental health and farm profitability.

Bauer’s Organic Farm Pty Ltd: Founded in 2008 in Adelaide, Bauer’s Organic Farm Pty Ltd produces high-quality, pesticide-free vegetables, fruits, and herbs. The farm supplies both local and export markets, using sustainable farming methods to improve soil health and promote biodiversity, ensuring long-term environmental sustainability across their operations.

Eden Farmer Organics: Established in Melbourne in 2010, Eden Farmer Organics specialises in fresh, high-quality organic produce, including vegetables, fruits, and free-range meats. The company prioritises environmentally sustainable farming practices, aiming to foster a healthier food system and expand the reach of organic agriculture both domestically and internationally.

R&R Smith Pty Ltd: Founded in 2012 in Brisbane, R&R Smith Pty Ltd is a key player in Australia’s organic farming industry, offering a wide range of certified organic products. The company focuses on sustainable farming techniques like crop rotation and soil conservation to ensure long-term land health and productivity.

Another key player in the Australia organic farming market report is Totally Pure Fruits Pty Ltd. among others.

Recent Developments

January 2024

EcoFarm Solutions introduced an innovative precision weeder for organic farms. The machine uses artificial intelligence to identify and remove weeds without damaging crops, helping reduce the need for herbicides and lowering labour costs, all while supporting sustainable farming practices.

October 2023

HarvestTech launched a new organic crop harvester designed to cautiously collect fruits and vegetables, minimising bruising, and waste. This technology enhances efficiency on organic farms while preserving the quality of delicate produce.