Australia Organic Dairy Market Size, Share, and COVID-19 Impact Analysis, By Product Type (Organic Fluid Milk, Organic Yogurt, Organic Cheese, Organic Butter, Organic Cream, and Others), By Distribution Channel (Supermarkets, Hypermarkets, Discount Stores, Convenience and Grocery Stores, Organic Speciality Stores, Online/E-Retailing, Direct Sales, and Others), and Australia Organic Dairy Market Insights, Industry Trend, Forecasts to 2035

Australia Organic Dairy Market Insights Forecasts to 2035

• The Australia Organic Dairy Market Size Was Estimated at USD 542.6 Million in 2024
• The Market Size is Expected to Grow at a CAGR of Around 6.17% from 2025 to 2035
• The Australia Organic Dairy Market Size is Expected to Reach USD 1048.3 Million by 2035

According to a research report published by Spherical Insights & Consulting, the Australia organic dairy market size is anticipated to reach USD 1048.3 million by 2035, growing at a CAGR of 6.17% from 2025 to 2035. The organic dairy market in Australia is driven by rising health consciousness, a growing need for goods devoid of chemicals and hormones, a growing preference for sustainable farming methods, increased retail availability, and premium pricing opportunities among consumers who care about the environment.

Market Overview

The Australia organic dairy market refers to the production, processing, and distribution of milk and dairy products that originate from organic livestock that have not been treated with synthetic fertilizers, pesticides, antibiotics or hormones. The product range includes organic milk, together with cheese, butter yogurt and cream. The applications serve household needs, food production, bakery and confectionery and health-oriented food products because consumers increasingly prefer dairy alternatives that are natural and sustainable and free from additives.

The Australian organic dairy industry receives support from government programs that promote sustainable agricultural practices and organic certification standards. The Organic Farming Incentive Program provides approximately AUD 100 million in grant funding, while research and infrastructure support receive a total of AUD 150 million. The ATMAC and Dairy Export Assurance Programme provide export assistance, which helps farmers implement organic farming methods and grow their domestic and international business operations.

The Australian organic dairy market has experienced new developments because Five:am developed sustainable paper yoghurt tubs while expanding its organic product lines, and Barambah Organics won multiple industry awards for its organic dairy products. Schulz Organic Dairy reached sales milestones with refillable glass bottles. The business will expand its operations through sustainable farming practices, premium organic product development and environmentally friendly innovation according to rising consumer demand.

Report Coverage

This research report categorizes the market for the Australia organic dairy market based on various segments and regions, and forecasts revenue growth and analyses trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Australia organic dairy market. Recent market developments and competitive strategies, such as expansion, product launch, development, partnership, merger, and acquisition, have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Australia organic dairy market.

Driving Factors

The organic dairy market in Australia is driven by consumers increasingly preferring chemical-free dairy products that sustainable practices create, while health awareness and animal welfare knowledge continue to rise. The market expands because customers demand premium products that have ethical origins, and the government supports organic farming, while export markets and eco-friendly packaging innovations create new business opportunities. The growth of organic retail channels, together with online platforms, enables more people to access organic products while boosting their usage.

Restraining Factors

The organic dairy market in Australia is mostly constrained by the high production and certification costs, which combine with the limited supply of organic feed and the operational difficulties faced by small farms, as well as the need to follow strict regulations and the higher prices that retailers charge, which together restrict consumer market access.

Market Segmentation

The Australia organic dairy market share is classified into product type and distribution channel.

• The organic fluid milk segment accounted for the largest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period. 

The Australia organic dairy market is segmented by product type into organic fluid milk, organic yogurt, organic cheese, organic butter, organic cream, and others. Among these, the organic fluid milk segment accounted for the largest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period. This is due to the fact that fluid milk is the most consumed, a daily family essential, and the foundation for other dairy products. Its market share and growth are driven by consumer choice for fresh, chemical-free milk, convenience, and broad availability.

• The supermarkets segment dominated the share in 2024 and is anticipated to grow at a remarkable CAGR during the forecast period. 

The Australia organic dairy market is segmented by distribution channel into supermarkets, hypermarkets, discount stores, convenience and grocery stores, organic speciality stores, online/e-retailing, direct sales, and others. Among these, the supermarkets segment dominated the share in 2024 and is anticipated to grow at a remarkable CAGR during the forecast period. This is because they are well-known, have a lot of foot traffic, and can provide a large selection of organic dairy products at affordable costs. Supermarkets are the main channel for organic dairy sales because they offer consumers accessibility, convenience, and brand visibility.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Australia organic dairy market, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborate analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Barambah Organics
• Australian Sustainable Dairies (ASD Group)
• The Organic Milk Co
• Jalna Dairy Foods
• Organic Dairy Farmers of Australia / True Organic
• five:am organic
• East Coast Sustainable Dairy
• Schulz Organic Dairy
• Tilba Real Dairy
• Nimbin Valley Dairy
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments:

• In January 2026, Australian Dairy Nutritional Group presented an entitlement offer of $3.47 million to finance operations and expansion as part of larger assistance plans for the dairy industry.

• In February 2025, five:am introduced the first paper-based yoghurt tubs in Australia, replacing plastic with sustainable packaging to reduce over 100 tonnes of virgin plastic yearly.

Market Segment

This study forecasts revenue at the Australia, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the Australia organic dairy market based on the below-mentioned segments:

Australia Organic Dairy Market, By Product Type

• Organic Fluid Milk
• Organic Yogurt
• Organic Cheese
• Organic Butter
• Organic Cream
• Others

Australia Organic Dairy Market, By Distribution Channel

• Supermarkets
• Hypermarkets
• Discount Stores
• Convenience and Grocery Stores
• Organic Speciality Stores
• Online/E-Retailing
• Direct Sales
• Others