Over the past five years, Australia's organic farming industry has grown at a robust pace of 11.6 per cent per annum and IBISWorld expects the industry will continue to soar, increasing its revenue by 14.9 per cent 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 60 per cent of all organic sales," Dobie said.
However, IBISWorld expects 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.
Over the past five years, the number of poker machines in Australia has contracted as state government caps have come into play – limiting the potential purchases of gaming machines.
Like many of Australia's manufacturing industries, production activity has gradually relocated from Australia to countries with lower production costs. This trend is increasing import competition, which is supported by the strong Australian dollar – making imported goods less expensive for local buyers.
This trend is expected to continue over 2012-13, contributing to a forecast industry revenue decline of five per cent to reach $417 million.
