Organic Food & Drink Market Research Report - UK

However, it is not price alone which has held the organic market back. Shoppers appear to find the multi-faceted organic concept a confusing one and many remain sceptical about the organic label. As a result, consumers place a lot more importance on other ethical food considerations such as animal welfare, despite this being a key principle of the organic proposition. Communicating clearly to consumers the specific tangible benefits organic food offers will be key to restoring consumer faith in the virtues of the organic label and will help to justify the higher price points.

It is not all doom and gloom for the organic market, however. The enthusiastic, if still minority, commitment from young, food-aware adults has inspired cause for optimism in the future of the market, as does the projected growth in ABs and 25-34s. The market is also expected to benefit from the ongoing marketing campaign launched in 2011 by the Organic Trade Board – the first of its kind in this market.

This report looks at the organic food and non-alcoholic drink market in 2012, analysing consumers’ purchasing habits, what organic categories they buy into, their understanding of the differences between organic and non-organic food and drink, and their attitudes towards these products.

This report covers the UK retail market for organic food and non-alcoholic drink produced according to organic principles and standards. The main sectors covered include fruit and vegetables, meat and poultry, dairy products, fish and seafood, eggs, prepared foods and groceries, cereal products, baby and toddler foods and infant formula. It includes organic foods that are fresh, frozen or ambient.

Organic farming involves the development of management practices that aim to avoid the use of agrochemical inputs and to minimise damage to the environment and wildlife.

To be certified organic, products must derive from sustainable management practices that rely on crop rotation, biological pest control and use of natural fertilisers. Management practices avoid the use of artificial herbicides, pesticides and fertilisers, genetic modification and, for livestock production, the routine use of antibiotics, growth promoters and other drugs. For organic processed products, not less than 95% of the ingredients must be certified as organic. Products made with between 5% and 30% of non-organic ingredients can highlight the organic content – legally the label must state the percentage of total organic agricultural ingredients.

Organic production standards were first introduced in the early 1970s. The term “organic” became strictly defined in European law in 1993 with the introduction of EC Council Regulation 2092/91, which ensured the strict regulation of organic food production. This EC Regulation sets minimum standards for organic production, which conform to those laid down by the International Federation of Organic Agricultural Movements (IFOAM). The Regulation also sets out the practices and inputs that may be used in organic production, covers inspection systems, and it also applies to processing, processing aids and ingredients in organic foods. Only organic foods originating from growers, processors and importers that are registered with an approved body and subject to regular inspection can be sold as organic.

To ensure that organic standards are adhered to, in whichever country the food is produced, the symbol or EU code number of a certification body must be clearly visible on the label of all organic foods. The new EU organic leaf logo became compulsory from 1 July 2012 on all pre-packed organic food products that meet the necessary standards. Standards cover registration, certification, the environment and conservation, production, permitted and non-permitted ingredients, processing, packaging and distribution.

Companies Mentioned

Channel 4 Facebook, Inc. Green & Black's Ltd Heston Blumenthal International Federation of Organic Agricultural Movements Kraft Foods UK Lactalis UK & Ireland Twitter, Inc. Waitrose Ltd Yeo Valley Farms (Production) Ltd YouTube, Inc.

Introduction Definition Abbreviations

Executive Summary The market Figure 1: UK retail value sales of organic foods, 2007-17 Figure 2: UK retail value sales of organic foods, by category, 2012 Market factors The shifting population structure presents challenges and opportunities Figure 3: Trends in the age structure of the UK population, 2007-17 Growth in ABs bodes well for the market Organic sits well below other ethical food-related issues The consumer Six in ten buy organic food and drink Figure 4: Changes in organic food and drink purchases, July 2012 Figure 5: Buyers of organic food and drink, by gender, age and socio-economic group, July 2012 Vegetables and fruit are most popular organic products Figure 6: Types of organic food and drink purchased, July 2012 Figure 7: Selected types of organic food and drink purchased, by age group, July 2012 The organic label suffers from a perception of being overpriced Figure 8: Differences between organic and non-organic food and drink, July 2012 Having fewer chemicals is organic’s best known attribute Box schemes are deemed to be overpriced by three in ten consumers Figure 9: Attitudes towards buying organic food and drink, July 2012 Three in ten would like to see more information about the specifics of the organic promise A large minority would purchase organic if prices were not higher than for non-organic Figure 10: Attitudes towards organic food and drink, July 2012 Four in ten find the term ‘organic’ too vague The market faces a number of challenges What we think For more information kindly visit : Organic Food & Drink Market Research Report - UK

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