ORGANIC farming should experience the most growth of any sector in Australia this year, according to business analyst IBISWorld.

The company predicted revenue from organic farming would increase 14 per cent to $474 million.

"Demand for organic products in Australia has risen steadily over the last five years as consumers increasingly factor in the health benefits and environmental impact of their food choices," IBISWorld general manager Robert Bryant said.

"Strong growth has also been supported by major retailers such as Coles, Woolworths and McDonalds,"

The analysts predicted the Australian apple and pear industry would contract by 6.8 per cent this year as competition from Chinese apples reduced prices.

"The industry is also facing challenges from stagnant local fruit consumption and limited export markets," Mr Bryant said.