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Organic Grocery Stores in Australia - Market Research Report (2014-2029)

Callum Francis Callum Francis Melbourne, Australia Last Updated: November 2024 ANZSIC OD5684

Revenue

$276.5m

2024-25

$276.5m

Past 5-Year Growth

Profit

$X.Xm

Employees

963

Businesses

297

Wages

$XX.Xm

Organic Grocery Stores in Australia industry analysis

The Organic Grocery Stores industry has encountered challenging trading conditions in the past few years, leading to a decline in revenue and profit margins. Organic grocers experienced negative demand shocks and sharp revenue contractions in the wake of the COVID-19 pandemic between 2019-2020 and 2021-2022, with many consumers turning to major supermarkets for their shopping needs rather than organic grocers. Revenue rebounded in 2022-2023 as normal trading conditions resumed. However, mounting cost-of-living pressures have led households to opt for less expensive substitutes, dragging down revenue once again over the two years through 2024-25.

Trends and Insights

  • Organic grocery stores have faced difficult trading conditions over the past few years. Downstream demand has been hampered by macroeconomic trends, contributing to revenue declines and tightened profit margins.
  • High-income earners are organic grocers' largest source of downstream demand. These consumers shop for premium organic goods, preferring to pay higher prices for the perceived benefits that organic goods provide.
  • Organic grocery stores in Australia are predominantly found in densely populated areas. New South Wales, Victoria and Queensland collectively host around 80.0% of these stores, with emerging growth in health-conscious regional areas.
  • Consumers are willing to pay a premium for organic products because of health and environmental preferences, which allows grocery stores to set higher prices. Increased supply of organic produce has diminished the pricing power of suppliers.

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  • Market estimates from 2014-2029
  • Critical performance data and rankings
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has declined at a CAGR of 2.9 % over the past five years, to reach an estimated $276.5m in 2024.

Trends and Insights

Revenue has shrunk as households turn to substitutes amid cost-of-living pressures

  • Organic grocery stores have faced difficult trading conditions, struggling to battle consistent negative demand shocks. Between 2019-20 and 2021-22, the fallout from the pandemic caused sharp revenue contractions as many consumers opted to shop at major supermarkets instead of specialty organic stores, forcing overall sales downwards. However, as normal trading conditions returned in 2022-23, demand for organic grocery stores rebounded.
  • Additional trends and insights available with purchase
Organic Grocery Stores in Australia
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Population growth and easing cost-of-living pressures will drive demand for organic groceries

  • Organic grocery stores are set to benefit from heightened demand for groceries over the next few years. This trend will largely be driven by population growth, as a greater number of households will lead to increased expenditure on grocery products. While organic products aren’t essential groceries, a larger downstream consumer base will support revenue growth.

Biggest companies in the Organic Grocery Stores in Australia

Company
Market Share (%)
2025
Revenue ($short_0)
2025

There are no companies that hold a large enough market share in the Organic Grocery Stores in Australia industry for IBISWorld to include in this product.

Products & Services Segmentation

Organic Grocery Stores in Australia
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Organic fruit and vegetables, Organic animal products and Organic pantry items. Organic fruit and vegetables is the largest segment of the Organic Grocery Stores in Australia.

Trends and Insights

Organic fruit and vegetables have lost revenue share to new products

  • Organic fruit and vegetable sales are organic grocers' largest product segment. While organic grocery stores have expanded their product lines over time, organic produce has historically accounted for the bulk of industry revenue. Some organic grocery stores continue to trade only fresh produce.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

This report analyses food retailers primarily focused on the sale of organic products, including pesticide-free, chemical-free and non-GMO products. The report excludes sales of organic food products at major supermarkets in Australia.

What's included in this industry?

Organic fruit and vegetablesOrganic meatOrganic dairyOrganic poultryOrganic pantry staplesOrganic beveragesOrganic baby food

Companies

Purchase this report to view all major companies in this industry.

Related Terms

FARMGATE GROCERY STORESPRIVATE-LABELNON-GMO PRODUCTS

Industry Code

ANZSIC 2006

ANZSIC 4110 - Organic Grocery Stores in Australia

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Organic grocery stores have faced difficult trading conditions over the past few years. Downstream demand has been hampered by macroeconomic trends, contributing to revenue d...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

High-income earners are organic grocers' largest source of downstream demand. These consumers shop for premium organic goods, preferring to pay higher prices for the perceive...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Organic grocery stores in Australia are predominantly found in densely populated areas. New South Wales, Victoria and Queensland collectively host around 80.0% of these store...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Consumers are willing to pay a premium for organic products because of health and environmental preferences, which allows grocery stores to set higher prices. Increased suppl...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

No organic grocery store in Australia commands a significant market share. A rise in new organic grocery stores is thinning out market share. Heightened competition, particul...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024

Detailed analysis

    External Environment

    Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

    Analyst insights

    Regulations on organic grocers are largely targeted towards advertising. Organic grocers must ensure that products marketed as organic can be backed up by sufficient certific...

    In this chapter

    • External Drivers
    • Regulation & Policy
    • Assistance

    Key metrics

    • Regulation & policy level and trend
    • Assistance level and trend

    Charts

    • Regulation & Policy historical data and forecast (2014-2029) 
    • Assistance historical data and forecast (2014-2029) 

    Detailed analysis

    • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
    • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
    • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

    Financial Benchmarks

    View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

    Analyst insights

    Organic grocery stores are experiencing shrinking profit margins because of increased input costs and growing competition from major supermarkets. This situation is exacerbat...

    In this chapter

    • Cost Structure
    • Financial Ratios
    • Key Ratios

    Key metrics

    • Profit margin, and how it compares to the sector-wide margin
    • Average wages, and how it compares to the sector-wide average wage
    • Largest cost component as a percentage of revenue
    • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

    Charts

    • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
    • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
    • Investment vs. share of economy

    Data tables

    • Cash Flow & Debt Service Ratios (2014-2029)
    • Revenue per Employee (2014-2029)
    • Revenue per Enterprise (2014-2029)
    • Employees per Establishment (2014-2029)
    • Employees per Enterprise (2014-2029)
    • Average Wage (2014-2029)
    • Wages/Revenue (2014-2029)
    • Establishments per Enterprise (2014-2029)
    • IVA/Revenue (2014-2029)
    • Imports/Demand (2014-2029)
    • Exports/Revenue (2014-2029)

    Detailed analysis

    • Trends in the cost component for industry operators and their impact on industry costs and profitability 

    Key Statistics

    Industry Data

    Data Tables

    Including values and annual change:

    • Revenue (2014-2029)
    • IVA (2014-2029)
    • Establishments (2014-2029)
    • Enterprises (2014-2029)
    • Employment (2014-2029)
    • Exports (2014-2029)
    • Imports (2014-2029)
    • Wages (2014-2029)

    Top Questions Answered

    Unlock comprehensive answers and precise data upon purchase. View purchase options.

    What is the market size of the Organic Grocery Stores industry in Australia in 2024?

    The market size of the Organic Grocery Stores industry in Australia is $276.5m in 2024.

    How many businesses are there in the Organic Grocery Stores in Australia industry in 2024?

    There are 297 businesses in the Organic Grocery Stores industry in Australia, which has grown at a CAGR of 1.9 % between 2019 and 2024.

    Has the Organic Grocery Stores industry in Australia grown or declined over the past 5 years?

    The market size of the Organic Grocery Stores industry in Australia has been declining at a CAGR of 2.9 % between 2019 and 2024.

    What is the forecast growth of the Organic Grocery Stores industry in Australia over the next 5 years?

    Over the next five years, the Organic Grocery Stores industry in Australia is expected to grow.

    What does the Organic Grocery Stores in Australia include?

    Organic fruit and vegetables and Organic meat are part of the Organic Grocery Stores industry.

    How competitive is the Organic Grocery Stores industry in Australia?

    The level of competition is low and increasing in the Organic Grocery Stores industry in Australia.

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    Widen your competitive advantage with related industries

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    Methodology

    How are IBISWorld reports created?

    IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

    Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

    IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

    What data sources do IBISWorld analysts use?

    Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

    Key data sources in Australia include:

    • Australian Bureau of Statistics
    • Australian Taxation Office
    • Australian Securities & Investments Commission

    Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

    These sources include:

    • Industry and trade associations
    • Industry federations or regulators
    • Major industry players annual or quarterly filings

    Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

    How does IBISWorld forecast its data?

    IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

    IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

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