Organic farming has been earmarked as one of five industries expected to soar in 2012-13 by market research firm IBIS World.
In a new report released today, diamond and gemstone mining, electricity generation, preschool education and superannuation funds are included in the five industries expected to fly in the next financial year.
The five industries expected to contract in 2012-13 are listed as iron and steel manufacturing; cotton growing; recorded media manufacturing and publishing; pulp, paper and paperboard manufacturing and gaming and vending machine manufacturing.
The report says that over the past five years, Australia’s Organic Farming industry has grown at a robust pace of 11.6pc per annum.
IBISWorld expects the industry will continue to grow, increasing its revenue by 14.9pc over 2012-13 to be worth $578.9 million.
“Demand for organic produce has been mainly driven by growing consumer interest in sustainable food production and rising disposable incomes,” IBISWorld General Manager (Australia), Karen Dobie, said.
“Supermarkets have responded quickly to increasing demand for organic products by increasing organic product ranges to improve accessibility.
“This has resulted in supermarkets accounting for around 60pc of all organic sales.”
However, IBISWorld expects that supply constraints – particularly in the meat segment due to lack of an organised supply chain in regards to organic feed, abattoirs and processors – will continue to limit industry growth.
The five industries expected to fly in 2012/13:
|Forecast growth 2012-13 (pc)||Revenue 2012-13 ($million)|
|Diamond and gemstone mining||35.6||509.3|
The five industries expected to fall in 2012/13:
|Change 2012-13 (%)||Revenue 2012-13 ($million)|
|Iron and steel manufacturing||-15.6||8,300.0|
|Cotton growing||– 8.3||2,500.0|
|Recorded media manufacturing and Publishing||-6.1||861.1|
|Pulp, Paper and Paperboard Manufacturing||-5.2||3,200.0|
|Gaming and Vending Machine Manufacturing||-5.0||417.0|
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