Natural and Organic Consumer Trends
Posted - September 19, 2008
New Data on US & EU Natural & Organic Consumers
Total consumer spending on natural personal care, including narrow, broad and organic definitions, currently stands at almost US$14 billion in the US and Europe, and by 2011 is set to reach more than US$20 billion. The US is the largest market at US$7.7 billion currently.
About one in three European and US consumers sought cosmetic and toiletry products that have natural credentials on a more frequent basis in 2005-06. Some consumers across Europe and the US are now also avoiding certain personal care products more, due to fears over ingredients.
While the consumer profile of who makes up the natural –seeking segment varies from country to country, there are some similarities. These consumers tend to be middle-aged, middle-income females who are well educated. New and expectant parents are expected to drive future usage.
A report that explores the key trends driving the boom in natural personal care consumption in the US, Europe and Asia-Pacific, including the above data, is available from Research and Markets. The quantitative data cover three classifications of natural personal care products: broad, narrow and organic. Extensive primary research of consumers and senior industry figures was used to uncover the latest thinking and reveal emerging opportunities.
For more, visit http://www.researchandmarkets.com/product/8fd2b8/natural_personal_care_consumers_unlocking
Water Pollution in China
Posted - September 19, 2008
300 million Chinese lack access to safe drinking water
Not only is China one of the world’s 20 most water-deficient countries, but irresponsible corporations and slack government have made water pollution highly prevalent in China. Today, about 70% of all rivers, lakes, and reservoirs in China are affected by water pollution.
Although water pollution legislation is in place in China, laws are not strictly enforced. Too often, local governments turn a blind eye to water pollution. The discharge of untreated wastewater into public bodies of water has become the norm. China’s industries dump an astonishing 40-60 billion tons of untreated wastewater into rivers and lakes every year, leaving little more than a precious 40% of water clean enough for drinking.
As a result, 90 million people in China are directly exposed to water pollution every day. Water for drinking, bathing, cleaning and cooking is often contaminated with toxins exceeding international safety standards.
This is one of the most serious environmental problems in China, and has fatal consequences for the population. The OECD estimated in 2007 that 30,000 Chinese children, mainly in rural areas, die each year from illnesses linked to consuming dirty water. Along China’s major rivers, there appears to be a higher than normal rate of cancer, miscarriages and low IQs.
Greenpeace is currently campaigning against water pollution in China by urging the government and industries to adopt clean production and enforce strict legislation to ensure proper treatment of wastewater.
The campaign will visit the most contaminated water sources in China, such as the heavy industry hubs of Jiangsu, Jiangxi and Chongqing, to expose the severity of China’s water pollution and identify key polluters. The group aims to generat transparency by creating spaces for public water quality monitoring.
From http://www.greenpeace.org/china/en/campaigns/toxics/water-pollution - reprinted with permission of Greenpeace.
Billion Dollar Boom
Posted - September 11, 2008
Organic and Natural Markets Expanding Rapidly
America’s shopping habits are experiencing a sea change when it comes to natural and organic products. These are now available in most every retail outlet, meaning consumers can easily purchase alternatives.
The new report (issue two) titled Natural and Organic Food and Beverage Trends in the U.S., by market research firm Packaged Facts, investigates the trends and demographics behind this solid growth. The report features material not in the first edition, including in-depth consumer analysis from both Simmons NCS and BIGresearch and case studies examining brand performance, sales data, and trends in nine key product categories.
The natural and organic markets continue to gain strength in food, drug, and mass outlets alike. Stores such as Whole Foods and Trader Joe’s have now brought natural and organic products to mainstream Americans, leading to savvier consumers.
Packaged Facts estimates that in 2008 sales of natural and organic food and beverages will continue double-digit growth to reach $32.9 billion. For 2005-2008, Packaged Facts estimates growth of 67.6%, being a compounded annual growth rate of 18.8%.
Not even the current economic upheaval is truly impeding the market’s steady development, according to Packaged Facts prediction of strong single-digit growth through 2013.
“While natural and organic products are no longer recession proof, Americans are waking up to expect natural and organic food in their stores, food that is pesticide-free, hormone-free and non-GMO. Suppliers and retailers are quickly acting to provide it to them. We believe this consumer demand will continue to spur the strong growth for these products,” says Tatjana Meerman, Packaged Facts’ publisher.
This second issue of Natural and Organic Food and Beverage Trends in the U.S. examines the latest information on market size, projections for future growth, future trends and opportunities, consumer demographics, the retail landscape, and leading producers.
For further information visit: http://www.packagedfacts.com/Natural-Organic-Food-1119530
About Packaged Facts – Packaged Facts, a division of Market Research Group, publishes market intelligence on a wide range of consumer industries, including consumer goods and retailing, foods and beverages, demographics, pet, and financial products. Packaged Facts also offers a full range of custom research services.
Canada Prepares National Regulations
Posted - September 9, 2008
Being “Canada Ready”
By Matthew Holmes, Managing Director of the Organic Trade Association in Canada
Like much of the world, the Canadian organic market is growing at a sometimes-breathless pace. With well over 20% annual growth, the Canadian organic market has been estimated at $1- to $3 billion per year. It is now more than a niche market, responsible for over 1% of all food and beverage sales in the country, and with a significant presence in national grocery chains and through private label product lines.
Considering Canada’s highly educated and environmentally-sensitive population, it is likely this market share will continue to grow. With the implementation of Canada’s Organic Products Regulations (OPR) on Dec. 14, 2008, the case for an upswing in consumer belief in organics is only stronger.
It is worth noting that Canada enjoys the strongest trade relationship with the United States of any country, powerful linkages to the rest of North and South America, an ever-growing Pan-Pacific and Asian trade, and strong traditional trading relationships with Europe’s biggest markets. Considering Canada is the fifth-largest agricultural importer in the world, no one in today’s global organic market should ignore this country’s potential.
This obviously begs the question: What are Canada’s new regulations all about, and what will you need to do to comply with them?
The answer to the first question is straightforward: Canada is in the final stages of implementing a mandatory, exclusive standard for all food and livestock feeds marketed within the country as organic. If your product is not certified to the new Canadian standards by an accredited certifier (one recognized by the Canadian Food Inspection Agency or CFIA), your product will not be allowed to enter the Canadian marketplace.
Which raises the second question: What do you need to do to meet the Canadian requirements?
First and foremost, speak with your certifier to make sure they will be able to offer certification to Canadian standards. A list of pre-approved certifiers active in the Canadian market has been published on the Organic Trade Association’s website.
In addition, all certifiers will need to be accredited by a recognized accreditation body that has agreements in place with CFIA. At this time, the Standards Council of Canada, CAEQ (Quebec), COABC (British Columbia), the International Organic Accreditation Service (IFOAM), and DAP (Germany) have all been audited by CFIA to provide services under the new Canadian regime.
The Canadian organic standards are unique, at times similar to either the U.S. or E.U. standards, though the fundamentals of all three are the same (i.e. third-party verification, inspection and audit trails, conversion, and other key points).
Canada has a positive materials list (the “Permitted Substance List”), which allows only specific uses for specific materials. If the material, input or processing aid you use is not on the list, it is not allowed in organic production or processing.
Once accredited and certified, products must be labeled according to the OPR. Canadian labeling requirements will be very similar to both the U.S. and E.U. A voluntary organic seal will be available, and products will be identified as “Organic” (95% or more), “Made with XX% organic ingredients” (70-95%), or, for products with less than 70%, the organic content may be identified on the ingredient panel (only). Unlike the U.S., Canada will not allow a “100% Organic” claim. Unlike the E.U., Canada does not have a labelling provision for “Transition to Organic” claims.
With the new mandatory regime coming into effect in December, there is an obvious need to phase in enforcement so that trade can continue smoothly. The Canadian industry sector has submitted a transition policy to CFIA allowing for “stream of commerce” flow-through of all products produced before the regulations were mandatory, and the sun-setting of certification. (The latter means one can become certified to the new requirements at the next scheduled annual inspection.) Other specific aspects of the transition policy, such as a voluntary compliance period and labelling options, will be determined in the coming months.
To stay up to date on Canada’s new organic regulations, standards, requirements and market reports, visit www.ota-canada.ca
Relating Organic and Conventional Markets
Posted - September 5, 2008
Organic Foods Report Puts Organic Market in Context of Overall U.S. Food Industry
Research and Markets, a leading source for international market research, has launched Organic Foods Report 2006, the 4th edition of a comprehensive analysis of markets, trends, competition and strategy in U.S. organic foods.
Based on more than a decade of continuous research on natural, organic, functional and conventional foods, this latest report (based on 2006 data) notes that the organic movement has evolved from a fringe element into a core business strategy that is now part of the world’s largest corporations.
Organics in 2006 represented a $13.8 billion portion of the overall U.S. food industry’s $500 billion pie. Penetration rates for organics went up from 0.8% in 1997 to 2.5% in 2005, and prospects for reaching 5-10% remain strong.
This research obtains information from each level of the supply chain, providing broad perspective, reliable accuracy and seasoned analysis on the still dynamic market for organic foods.
The 460-page report covers product categories in comprehensive detail, including sales channels, distribution trends, supply chain issues, price premiums, historical market growth and forecasts, category leaders and more.
It also features more than 300 Company Profiles snapshotting leading manufacturers, including organic sales, product and sales channel breakdowns for each firm.
For more:
http://www.researchandmarkets.com/research/876db0/organic_foods_report
