At BioFach Congress: Sophisticated consumers demand more
Posted - February 27, 2010
At BioFach Congress: Sophisticated consumers demand more
By Warren Beaumont
A major market trend is that consumers are becoming more sophisticated. Originally, consumers were buying organic food for health reasons and ecological reasons. However, consumers today are becoming better informed. They still care about the environment and today, climate change has made the environment more important. They are also concerned about the chemicals in products and are buying more natural products that are ‘free from’ additives, synthetic colorings and preservatives.
“Consumers are also asking where the product is coming from, where it is grown, if it is ethically sourced. They also want to buy products that are in season, that are locally grown. They’re asking about the carbon footprint of products, and don’t want to buy a product that has been flown halfway across the world.
These themes and the trends of over production; discounters driving down prices and consumer price sensitivity; industry consolidation; more sophisticated consumers demanding more from organic products such as sustainability, fair trade and ecological packaging, were part of one of the key presentations made at the BioFach Congress this past February at ‘The World of Organic Agriculture – Statistics and Emerging Trends’ presented by Helga Willer of the Research Institute of Organic Agriculture FiBL and editor of this annual report and book since 2000; Amarjit Sahota, of business research & consulting firm Organic Monitor, UK and IFOAM’s executive director Markus Arbenz.
“So, what we are seeing is that organics is only part of the equation, when consumers are buying organic foods they want more, they are looking at sustainability and sustainable values”, says Mr. Sahota. “Some of the pioneers of this industry adapted to that and realized that organic is no longer good enough, especially if discounters like ALDI are setting a very low price for organics. Apart from price, you need to compete on other values and these companies are highlighting their products with attributes such as sustainable values - fair trade, ethical sourcing, carbon neutral, local sourcing, promoting biodiversity, ecological packaging, energy usage, reducing waste.”
Growth in organics over the past nine years is quite significant, despite the downturn in 2008, with market growth rates expected to recover in countries such as the UK and Germany.
“Growth has been much lower than in previous years, with only 10% in 2008, while growth has been 235% over a period of nine years (to nearly US$51bn in 2008), that is very significant,” Mr Sahota said. “Sales of organic foods are still concentrated in Europe and North America and represent 97% of global sales. The USA has the largest market for organic food and drink sales, followed by Germany, then the UK, France and Italy.
“In terms of categories, today we’ve seen increases in production of grains and different crops, while most sales of organic food and drink products in almost every country are still coming from fresh products - fruit and vegetables, which represent about 30% of sales; fresh dairy – milk, yohgurt, cheeses; meats, poultry beef, pork; then beverages – juices, soy, tea and coffee; followed by other products such as baby foods and processed foods”, says Mr. Sahota.
“What we tend to find is that fresh and healthy products are the most favoured by consumers and that consumers who eat fresh and healthy foods tend to buy organic foods more than those who buy processed foods.”
Looking at the sales data by regions, the European market was worth about $US26 billion, a slower growth than in previous years, with the largest markets being Germany, France, Italy, Switzerland, and the UK.
“After many years of under supply, we’re now seeing overproduction of organic fruits, vegetables, meat and dairy”, says Mr. Sahota. “Here in Germany, the discounters came in and are selling organic products at very low prices. Consumers are becoming more price conscious in buying food and organic products, while the average price of organic foods over the last 18 months has gone down”.
In the United States private labels have become very important. The leading brand of organic food is O Organics, private label from Safeway, which made over $US400 million in sales in 2008. “What we are also seeing is consolidation, at the producer level, at the wholesaler level, as well as at retailers.
In Asia, Mr Sahota said the market was worth just under $US1 billion in 2008, with Japan the main market. “Major trends there are that consumers are becoming more interested in organic foods,” he said. “However, Asian consumers tend to be more price conscious; they are interested in organic foods but are not always ready to pay a premium. We have seen the market concentrated in the richer countries of Japan, South Korea, Singapore and Taiwan.”
Mr. Sahota also warned of more consolidation, which has been seen in Europe and North America. “We’re going to see some mergers and acquisitions, some companies will leave the sector and close, as the industry is not as profitable as they expected it to be,” he said.
Organic companies are increasingly adopting fair trade practices and now launching the first certified organic and fair trade products marketed as ethical products, a growing trend also in cosmetics.“The certification agencies are recognizing this by adopting some of these sustainable values. Now consumers are demanding more from organics and manufacturers are adopting sustainable practices and certification agencies are really responding to that and this is the way this industry has evolved.”
Organic cosmetic demand grows
Posted - February 1, 2010
Organic cosmetic demand grows
According to British market research company Organic Monitor, the global market for natural and organic cosmetics is growing by over US $1 billion a year and exceeded US $7 billion in 2008. In Brazil, the Ministry of Agriculture is designing a regulation for organic cosmetics.
Instituto Biodinamico (IDB), a leading certification agency, reports strong demand from cosmetic ingredient manufacturers. It currently has around 40 certified companies of which only four are certified cosmetic manufacturers. One of those certified companies is family-owned Magia dos Aromas with an output of 2,000 units per month of vegetable-based cosmetics. (last sentence is OK?)
The FSC label for forestry products is also popular among small and medium companies, which is leading Organica of Santana do Paraiba, a manufacturer of cosmetics and personal care products, to set up franchises from 2010 onwards.
Biofach says the international natural cosmetics market is still growing. The difficult economic environment has astonishingly little effect on the sector’s stable growth record. According to a sample analysis by the international market research institute IRI Information Research of Nürnberg, Germany, natural cosmetics achieved 7.6 % sales growth in the German retail food trade and drugstores in the first half of 2009. In 2008, the entire German market for certified natural cosmetics had grown by almost 10 % to 672 million EUR, with a market share of 5.3 % in total cosmetic sales.
Organic Monitor forecasts continuing growth potential. Estimates indicated that European sales figures rose by 13 % in 2009, with France and Germany showing the fastest growth. The market volume in Europe could reach 2 billion EUR in 2010. At international level, the United States and Asia, primarily Japan and Korea, remain the strongest buyer markets.
Germany still leads the pack
Posted - January 30, 2010
Germany still leads the pack
Based on a report produced by Dr. Klaus-Juergen Holstein, Ein Herz fuer BIO magazine
Germany still represents the biggest organic market in Europe, with potential for growth, followed by France and Great Britain. Organic sales account for 6.5% of the total food sales in Germany, 3.4% in France and 2.2% in Great Britain.
Compared to the other two countries, the German food market is generally low-priced, including organic food. The German organic sales concentrate mainly on fruit and vegetables, supplements and wellness food from rice cakes to vegetarian spread, and on dairy products.
Regarding channels of distribution, at the end of the 1990s small specialist shops dominated with over 40% of organic sales. Today, the 2000 specialist shops account for only 23% of total sales. Supermarket chains with around 40,000 outlets account for 35 %, and 19% of sales go through discount-markets, which with 10,000 retail shops account to 40% of total food sales.
Specialist shops do not have a well developed structure yet.There are only two large chains , Alnatura and Denn´s. The leading organic seller is tegut. Wth only 300 shops, nearly 20% of the retailer’s annual turnover is organic food.
Sales of organics are reported higher in smaller outlets, with a 9.4% increase compared to 1% for the general food sales growth. Many small-sized German supermarkets are manager-owned within the food chains Edeka and Rewe. At Edeka some regional offices in the South of Germany buy organic food directly from regional wholesalers or producers. At Rewe management has a more national centralized purchasing operation.
Germany’s best known organic brands started as a combination of an organic umbrella or brand and wholesale operations such as Biozentrale with Gut & Gerne, Rila with Rinatura and Rapunzel/Biogourmet. The smaller supermarkets normally sell a range of about 12,000 products, 400 – 1200 of which are organic quality, while the larger retailers offer a selection of 20,000 to 30,000 products, with up to 3000 in organic quality. Maximum stock capacity per outlet is about 14,000 products, which means many products have to be delivered directly to the shops. Over 60% of organic products are distributed by wholesalers.
The main consumers of organic food in Germany are baby boomers 50+. The younger generation find organics too expensive and not attractive enough, while the 30 + generation, more into the “feeling good”, trend, is turning into the most avid advocate of organics. Buying local continues to be a strong motivator in general and health concerns are the main reason for buying organic.
During the current financial global crisis the German organic market has remained strong and stable, except in the consumption of dairy products. While there is high price pressure on all vegetables, products such as coffee, wine and preserves reported sales increase. The trend of organic products, offering good value, continues.
Irupana: building a sustainable model of social enterprise
Posted - January 25, 2010
Irupana: building a sustainable model of social enterprise
By Adriana Michael
With a jeep, 4,000 USD and two ideas, entrepreneur Javier Hurtado Mercado founded Irupana Andean Organic Food S.A. in 1985. First, he wanted to market natural and organic certified products from small indigenous producers in Bolivia. Second, he wanted to make available ancient forgotten nutritious foods. After working for several years with NGOs, Javier and his wife Marta Cordero realized that the only way to help peasant farmers was to set up a distribution business to bring products directly to the buyers.
Until 2004, the firm supplied mainly the domestic market with over 120 natural foods and a distribution network of 400 outlets. Opening a franchise followed, currently with 18 natural food shops that offer coffee, a variety of Andean cereals and baked goods, pasta and honey.
A tender bid from the government (2000-2004) allowed Irupana to offer a nutritious breakfast with quinoa to feed over 60,000 students from public schools. Instead of refined imported wheat for cheap bread, the children discovered a delicious and nutritious local staple.”Those four years were perhaps the most gratifying” says Mr. Hurtado.
Interest in quinoa increased gradually. Health related circles in Europe and the USA spread the word of its nutritional benefits. Irupana acquired new processing plants in 2006. Quinoa exports rose from 5 to 20 tonnes, offering a steady income to counter an unstable domestic market.
In 2008, food scandals around the world, consumer dissatisfaction with big agro-food manufacturers and demand for gluten-free foods drove Royal Quinoa sales even further. Last year, the farmers’ price for quinoa rose from 40 to 112 USD. That year Irupana was the number one exporter of Bolivian Royal Quinoa.
Mr. Hurtado attended BioFach to sell his value-added products. “It is an event to connect producers of raw materials from developing countries with trading and processing firms from industrialized nations. The international cooperation is oriented to strengthen a rigid North –South exchange”, says Hurtado.
Helping farmers become entrepreneurs
“Over the years we understood that to incorporate the small Bolivian organic farmers into the global economy, they needed subsidies”, says Mr. Hurtado.”They had to learn how to increase land for organic production and to get certification, and technical assistance to set up internal control systems for harvesting and warehousing, along with small agricultural machines and biological pest controls”. To fulfill these needs in a more efficient way, Irupana created its own NGO in 2007: El Instituto Bartolina Sisa.
The Institute immediately embarked on some interesting ventures. For example, Bolivia’s Altiplano offers little fuel options except wood from sparse forest. To control further erosion from cutting trees, the Institute supported a project to introduce solar powered stoves. The Institute has also studied local nutrition. The additional quinoa income has lead families to buy processed foods. Like consumers in other parts of the globe, to save on time and effort, local families also wanted access to ready-to-use foods. The Institute now supports initiatives to educate locals to eat healthier. There are plans of a retail operation for quinoa-derived foods, at subsidized prices, under management of the quinoa farming communities.
Although today Bolivian families have a more stable disposable income, fuelling demand for natural and healthier foods, Irupana aims to find new markets for finished lines. Currently, red, black and white Royal Quinoa and amaranth are available in grain, flakes, flour and puffed, packed for retail under private or own label. Another goal is to invest in technology and development of new products to reach foreign markets with value-added foods, such as energy bars with quinoa, canihua and amaranth - all gluten free.
Mr. Hurtado started with two ideas, which have materialized. But his vision goes further: “Our goal is to consolidate Irupana as a cooperative enterprise with 33 percent of shares open to our suppliers, employees and executives, 34 percent for the promoters and 33 percent open to financial investors.”
Mr. Hurtado has worked tirelessly to develop a model of organic production that preserves the environment, while encouraging farmers to become actively involved entrepreneurs in the process. A jeep, 4,000USD and two ideas to help farmers have already brought big dividends.
Organics UK plans 1.8 million campaign to boost organic sector
Posted - January 15, 2010
Organics UK plans 1.8 million campaign to boost organic sector
By O.W.N. News Network
Organics UK is planning a 1.8 million pounds campaign over three years to promote organic food and farming and to encourage consumption of organic products with a major campaign launch in October 2010. Organic UK reached its initial target of 250,000 pounds funding per year in late 2009, and as of January 2010, had raised almost 300,000 pounds that is being matched with EU funding.
Campaign objectives are to increase the frequency of purchasing by communicating the benefits and values of organic food and reverse the 2009 decline in sales. The campaign will inform consumers about why they should buy organic products - how to identify organic products, what organic standards say and what the benefits of organic food production are.
The British organic campaign came about after Sustain, the alliance for better food and farming, agreed at the end of 2008 to take on the role of ‘promoter’ in the process of applying to the EU for funding the program. Organics UK project coordinator Catherine Fookes said the campaign, which will include press advertising, aims to drive a 15% increase in sales per year for the three years of the generic campaign between 2010-2013. While 90% of UK consumers buy organics, 11% of organic buyers account for 60% of total spending.
“We have an ambitious target, but one that is achievable. Our organic sector has had double digit growth for the last decade, and we are working hard to get back to those growth levels,” Ms Fookes said. “To date we have raised almost £300k which when matched with EU funding will give us £600k per annum to promote organics.”
The campaign will include a warm-up PR and digital campaign from January and then press advertising, PR and digital media from late 2010 that will target shoppers with the most potential to buy organics – women - aged 25 – 54 years (six million women in Britain are in this category). Ms Fookes said the campaign will encourage the heavyweight organic buyers to go back to pre-recession spending on organics, and the featherweight buyers to also increase their spending.
Sustain UK, Organic Trade Board, organic NGOs and organic businesses committed to the generic communications campaign. Sustain UK is co-coordinating the bid, along with a steering group of key organizations, including the Soil Association and the Organic Trade Board. Companies such as Alara, Green & Black’s, OMSCo, Organic Farm Foods, Organix, Produce World, Rachel’s, Yeo Valley and another 50 companies have made major pledges to the campaign. Look up the OrganicUK website www.organicuk.org
Mintel CPG Trend Predictions for 2010
Posted - January 5, 2010
Mintel CPG Trend Predictions for 2010
By O.W.N. news network
The trend experts at Mintel GNPD released their 2010 global Consumer Packaged Goods (CPG) predictions saying this year’s new products will recreate the familiar. “Post-recession, we don’t expect manufacturers to reinvent the wheel. Instead, we predict 2010’s new products will give shoppers something familiar paired with something new to better satisfy their needs,” said David Jago, director of Trends and Innovation at Mintel. “On retail store shelves, we expect today’s familiar megatrends - health and wellness, convenience, sustainability - to get a fresh, new makeover for 2010.” Here are the seven core trends that will impact global new product development as manufacturers try to pique interest in new launches while keeping shoppers comfortable.
1. Symbol overload: Consumers are hungry for nutrition facts. However, people feel confused and sceptical about different companies’ nutrition symbols. In the UK nearly half (45%) of consumers find nutritional labels too cluttered. In response, more manufacturers will opt for clean, clear facts on front-of-pack statements.
2. Sodium reduction: Poised as the next major health movement, sodium reduction is finally ready to take hold. Indeed, 35% of UK consumers now consider low salt content when buying food. The key difference, said David Jago, is that “sodium reduction is being pushed by food companies and health organisations, not by consumers.” This could mean slow adoption of the ‘less salt’ mantra by shoppers, even as the food industry moves ahead.
3. Local gets stretched: In today’s society, for many shoppers buying only local goods is a pipe dream. However, people still want products with recognisable origins and those that haven’t been shipped too far. In the UK 46%, and 43% in the US, buy products from their own country when they can. In 2010 the definition of ‘local’ will expand, becoming more practical for major companies to use and for mainstream shoppers to purchase.
4. Simple made special: Ready to get a kick out of buying ‘ordinary products like soap and juice? Well in 2010, chic packaging and premium positioning will turn today’s grudge purchases into enjoyable events. The recent trend towards boutique-inspired packaging highlights how manufacturers will make the mundane a little more special next year. (If embarking in this trend, make sure your packaging reflects the concepts of sustainability and “re-use before recycle”).
5. Colour coding for convenience: Cluttered supermarket shelves make it hard to find our favorite cereal flavor and shampoo variety. To help shoppers make faster choices, in 2010 more manufacturers will colour-code their products. In the UK, 45% of consumers claim to compare products by their labels often and nearly two-thirds of Americans (64%) say they want colour-coded packaging, which also helps brands stand out. (Germany’s retail market offers a great example of this trend, and it works).
6. Iconic budget brands: Private label ‘brands’ are starting to look a lot more like brands. As consumers cut spending because of the recession, smart marketers ramped up promotions for their private label lines. Many shoppers now equate private labels with national brands and value them as such. In 2010, low cost, high quality private labels will thrive.
7. Gen Y cleans up: Generation Y (born between 1977 and 1994) consumers now make up 21% of the global population. While they grew up with tried and trusted established brands, this generation is now calling out for products of their own. Looking at the cleaning sector, there aren’t a wealth of Gen Y-focused cleaners on the market at present - but expect that to change in 2010. New products will highlight simplicity of use and quick, easy results to appeal to younger shoppers. (US based brand Better Life by Clean Happens offers a great example).
Organic US consumers stay loyal
Posted - January 4, 2010
Organic US consumers stay loyal
By O.W.N. News Network
According to a Mintel Oxygen report released by market research firm Mintel on December 21, 2009, most US organic consumers are sticking with organic options. Organic food and drink sales experienced strong growth over the last decade, in particular during the last five years as mainstream food and drink marketers started aggressively stocking organic name and private label brands.
Mintel says while the recession has curtailed growth in the short term, and trading down and out of some segments is common during tough economic times, consumers that buy natural and organic food are remaining loyal to this health-conscious category. The November 2009 Mintel survey shows that nearly 40% of consumers claim they have not changed organic product purchasing habits because of the recession and only a mere 3% have stopped buying organic products altogether.
“Heavy users of natural and organic food and drink are most likely to indicate they’ve traded down to less expensive organic options,” notes David Browne, senior analyst at Mintel. “However, less-frequent consumers of organic products have shown that they haven’t shifted their behavior. This is good news for the organic food and drink market, as this group may begin to buy more once recession-related fears begin to fade.”
With a slight decline in supermarket sales in 2009 (-0.3%), Mintel and natural products industry expert SPINS expect the organic food and drink market to recover gradually during 2010-12, but not at pre-recession growth rates. Consumers have made shifts in their purchasing behavior that are likely to carry on through this period.
“The natural and organic food industry has an opportunity to instill trust and educate consumers as we work our way out of this recession,” comments David Browne. Currently, only one-third (33%) of survey respondents trust the term ‘natural’ on labels and nearly half (45%) trust the term ‘organic’. However, roughly 30% of respondents say they don’t know if they can trust either term.
Earthbound and Naked will use only post-consumer recycled packaging
Posted - July 27, 2009
Earthbound and Naked will use only post-consumer recycled packaging
O.W.N. News Network
This month, Earthbound Farm and Naked Juice announced their decision to only use packaging made with 100 percent post-consumer recycled (PCR) content.
Earthbound claims to be the first firm in the fresh produce sector to switch the plastic for all its clamshell packages to 100 percent Post-Consumer Recycled PolyEthylene Terephthalate (PCR PET). This initiative is part of the celebration of the company’s 25th anniversary.
Naked Juice is also the first firm in the juice product category to switch to the reNEWabottle PET plastic, identified by the resin code 1. In a release the company announced to have its entire product line transitioned to the 100 percent post-consumer recycled bottles in 2010, starting by converting all of its 32 ounce bottles this month.
The previous bottles were translucent, the Naked reNEWabottle is clear, in response to growing consumer demand for more transparency, which literally includes the wish to see the content of the product they are buying. With this transition Naked Juice will reduce consumption of 8.1 million pounds of virgin plastic per year.
According to its website, Earthbound estimates that by switching to only recycled plastic, it will conserve 424,000 million BTUs of energy and 68,307 gallons of water, reducing carbon dioxide emissions by 16,191 tons and use 1.3 million pounds of post-consumer plastic per year.
PET is a strong but lightweight form of shatter-resistant, and recyclable clear polyester used to make containers for food and non-food products. The PET molecules consist of long chains of repeating units only containing the carbon (C), oxygen (o) and hydrogen (h) elements. While virgin PET is made primarily from natural gas, post-consumer recycled PET is made from previously used plastic containers, requires significantly less energy and water to produce, generates less greenhouse gases than virgin plastic, and diverts re-useable materials out of the landfills.
The commitment to 100 percent post consumer plastic initiated by Earthbound and Naked is of great importance. Although PET is the most-recycled plastic material, according to the US Environmental Protection Agency, of the nearly 6 billion pounds of PET packaging waste consumers in the United States generated in 2007, only 23 percent was recycled into new products .If more organic firms embark in this initiative, a trend may start for consumers to push the larger conventional multinationals to take similar action.
Organic consumers prefer glass containers
Posted - July 24, 2009
Organic consumers prefer glass containers
O.W.N. News Network
Glass continues to be the first choice of packaging for most health-conscious organic shoppers, concludes a survey conducted by the University of Oklahoma and the Glass Packaging Institute (GPI), the trade association representing the North American glass container industry. According to the poll, most health-conscious organic shoppers believe glass keeps the true flavor and taste (79.8%) and purity (77.3%) of a food product. Glass also continues to be the first choice of the organic shopper by wide margins compared to other forms of packaging for health (77%), quality (67.7%), and preserving product shelf life (67.7%).
“Glass is the natural packaging choice for organic products, as like organic foods and beverages, glass bottles and jars contain no synthetic chemicals or toxins,” says Joseph Cattaneo, president of the Glass Packaging Institute. “Glass containers are 100% pure, and are made from natural minerals, which include sand, soda ash, and limestone.”
Glass is once again the primary choice when it comes to the superior packaging for the environment (50%), compared to paper (28.3%) and plastic (10.2%), and is also the first choice of consumers who say they care about the environment and their individual and family health.
“Glass containers can be recycled again and again without loss of quality or purity,” says Cattaneo in a release. “Every time you recycle a glass bottle or jar, you help to save energy and our planet. Glass is good for your health and for the environment.”
The survey was conducted by telephone on April 14, 2009, under the coordination of the Newton Marketing Research, Norman, Oklahoma, in conjunction with Professor Doyle Yoon, PhD Gaylord College of Journalism and Mass Communications, University of Oklahoma, with a Margin of error of +/- 3.7% (survey facts). The poll included a sample of 1,000 respondents.
The survey also found that in spite of the recession, consumer interest in organic foods continues, especially among younger consumers, with a 57.8 percent between the age of 18-to-34, reporting to purchase organic foods sometime during the year, compared to 38 percent of shoppers ages 55 and older. Consumers are better informed and are willing to pay a premium for products that are healthier and friendly to the environment inside and out.
After the bisphenol A scandals where it was proven that this and other chemicals contained in the plastic can leach out, demand for “pure,” “sustainable” packaging for foods and beverages has become stronger. Consumers want transparency and this literally applies to the possibility to see the product inside the package. Glass offers a cleaner look and the confidence of a material that has been safely used for over 4,000 years, even though its production also causes CO2 emissions and transportation of goods packed in glass may increase their carbon footprint because of their extra weight and potential to break that requires extra packaging.
For more information visit www.gpi.org
Green Perseveres Through Tough Times
Posted - March 30, 2009
Recession or Not, Green Still the Way to Go
By Adriana Michael, O.W.N.
Unemployment rates have been on the rise around the world, and the financial crisis at its peak in strong countries like the United States and the United Kingdom. This uncertainty anticipated a gloomy economy and a tough business environment for 2009. The good news is that by the end of the first trimester, the organic and natural sectors continue showing strong performance, although not at the same growth rate as in previous years.
Organic consumers are well informed, committed and have a firm idea of their purchasing priorities. In the US and Europe the industry reports steady sales of organic fruits, vegetables, dairy products, grains, bread and meat. In Germany market research firm Nielsen Co. conducted a survey of 9,000 households this past February, 54 percent of the respondents said that they may have to adjust and give up a few things due to the economic crisis, but their lifestyle will not change much. 29 percent stated that the crisis will not affect their lifestyle and purchasing decisions. “Over 75 percent of the respondents said that in spite of the recession they would not give up buying organic, natural or health related products”, says Brigitte Arndt-Rausch of Nielsen Co. GmbH.
Conventional supermarkets, pharmacy chains and discounters lead the growth of organic sales in Germany, which enjoys a 40 percent market share. And consumers will look to the large retailers’ own brands and other more affordable alternatives, in order to stay committed to the values and beliefs that trigger their purchasing of organic certified goods, adds Arndt –Rausch.” Higher prices for organics will be accepted only if the products show a strong difference from lower priced goods in terms of taste, quality, nutrition content and positive health, environmental and social claims.
According to the Organic Trade Association, in the last decade organic food sales in the USA have grown 15 to 21 percent each year. And even though in 2008 organic sales were lower than the 23 percent projected sales of $23.6 billion, (the report has not been released at the time of writing) new research from The Natural Marketing Institute (NMI), reveals that consumers are increasingly incorporating organic products into their lifestyles. “Total household penetration across six product categories increased from 57 percent in 2006 to 59 percent in 2007”, according to NMI.
In Australia 61% of grocery buyers buy organic products, while there is some evidence of a slowing in sales of some of the more expensive packaged organic products, reports the Organic Federation of Australia (OFA). “(Sales of organics) continue to increase because consumers are buying more organic products for home consumption, rather than spending on more expensive items such as cars and TVs,” said in a release Andre Leu, OFA’s chairman.
In the UK, where consumption of organic food have indeed experienced one of the largest declines during the financial crisis, non-foods such as energy-saving light bulbs showed extremely strong sales. “In the last three months of 2008, 12.3 million of them were sold in the UK, up from 8.9 million in the same quarter of 2007, an increase of 38.2%”, the BBC recently reported, adding that “a lot of the increase may be attributed to the falling price of the bulbs”.
While we may not be seeing the accelerated growth rates of previous years, it has been encouraging to observe the positive attitude and high traffic at the fairs this trimester, much to the relief of the socially and environmentally responsible entrepreneurs and consumers. There is no doubt that, in spite of the economic recession, green is and will continue to be the way to go!
