Table of Contents
Introduction and Abbreviations
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- Definition
- Consumer research
- ACORN
- Abbreviations
Premier Insight
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- Targeting young families
- Understanding the outsiders
- Blue-sky seasonal solutions
Executive Summary
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- The stage is set for further growth
- Sales continue to enjoy double-digit growth
- Market continues to rely on imports
- Multinationals play down their involvement
- Cross-category emphasis on NPD
- Advertising expenditure has fallen dramatically
- Fruit and veg; the gateway to organic
- ABs dominate, but the gap is narrowing
- Prolonging the healthy start for families
- Acknowledging wider consumer trends
- Similar strong growth forecast
Market Drivers
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- Organic joins the mainstream
- Promoting an organic lifestyle
- Part of a healthy balanced diet
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- Figure 1: Adults who are trying to slim, by gender, 1998-2004
- Fairtrade link has a positive effect
- Buying organic to support local growers
- Government support for organics
- Unnecessary food miles cause concern
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- Figure 2: Estimated imports of organic food and drink retail sales in the UK, by value, 2003-04
- The Soil Association has promoted growth
- Celebrities help raise the profile of organic food
- Additive-free is more relevant to GB consumers
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- Figure 3: Attitudes towards artificial additives and free range products, 2004
- Fewer consumers consider organic a luxury
- Organic as the safer option
- An affordable luxury?
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- Figure 4: PDI and consumer expenditures at current and constant prices, 2000-09
- Encouraging growth in target age groups
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- Figure 5: Trends and projections in UK population, by age group, 2000-09
- Socio-economic trends have also favoured organics
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- Figure 6: Trends and projections in UK population, by socio-economic group, 2000-09
Market Size and Trends
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- Growth slows as organics market matures
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- Figure 7: UK retail value sales of organic food and non-alcoholic drink, 2000-05
- Fresh and chilled produce lead the way
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- Figure 8: UK retail sales of organic food and non-alcoholic drink, by type and value, 2000, 2002 and 2004
Market Segmentation
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- Figure 9: Indexed sales of trends in the top four organic sectors, 2000-05 (est)
- Fruit and vegetables
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- Figure 10: UK retail sales of organic fruit and vegetables, by value, 2000-05
- Retailers focus on availability of core products
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- Figure 11: UK retail sales of organic fruit and vegetables, by type and value, 2000, 2002 and 2004
- Organic dairy products more than doubles in size
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- Figure 12: UK retail sales of organic dairy products, by value, 2000-05
- Children’s market provides a boost
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- Figure 13: UK retail sales of organic dairy products, by type and value, 2000, 2002 and 2004
- Vitamins adding value to organic milk
- Prepared foods and groceries
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- Figure 14: UK retail sales of organic prepared foods and groceries, by value, 2000-05
- Chocolate one of the fastest growing organic segments
- Meat and poultry play on animal welfare and food safety aspect
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- Figure 15: UK retail sales of organic meat and poultry, by value, 2000-05
- Organic poultry enjoys growth impetus
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- Figure 16: UK retail sales of organic meat and poultry, by type and value, 2000, 2002 and 2004
- Organic bread and cereals
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- Figure 17: UK retail sales of organic breads and cereals, by value, 2000-05
- Baby food and infant formula
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- Figure 18: UK retail sales of organic baby food and infant formula, by value, 2000-05
- Eggs
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- Figure 19: UK retail sales of organic eggs, by value, 2000-05
- Non-alcoholic drinks
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- Figure 20: UK retail sales of organic non-alcoholic drinks, by value, 2000-05
- Trading up among tea drinkers
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The Supply Structure
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- Production capacity expands; but conversion slows
- Supplier shares
- HiPP dominates in baby food
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- Figure 21: Estimated manufacturer/brand shares in the UK organic baby food and drink market, by value, 2002-05
- Green & Black’s in a class of its own
- Companies and brands
- Fruit and vegetables
- Geest
- Isleham Fresh Produce
- Organic Farm Foods
- Riverford Organic Vegetables
- Dairy products
- OMSCo
- Rachel’s Organic
- Yeo Valley
- Prepared foods
- Duchy Originals
- Green & Black’s
- Kallo Foods
- Meat and poultry
- Craig Farm Organics
- Organic bread and cereals
- Doves Farm
- Jordans
- Baby food and infant formula
- HiPP
- Organix
- Eggs
- Deans Foods
- Non-alcoholic drinks
- Cafédirect
- Clipper Teas
- United Foods International
New Product Development
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- Organic NPD covers a wide range of product categories
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- Figure 22: New product launches, by category, in the last 12 months, August 2005
- Figure 23: Top 15 new product launches, by brand, in the last 12 months, August 2005
- New launches versus range extensions
- Vegetarians well catered for
- Free-from foods are prominent
- Low/no-fat also present
- Functional emerging
- Targeting the convenience-driven consumer
- Fairtrade continues to expand
- Children and babies
- Own-label remains small in comparison
Advertising and Promotion
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- Above-the-line expenditure has fallen dramatically
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- Figure 24: Main monitored media advertising expenditure on organic foods and soft drinks ranges, 2000-04
- Yeo Valley yogurts top tables in 2004
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- Figure 25: Main monitored media advertising expenditure on organic food and soft drinks ranges, by selected high-spending suppliers, 2000-04
- Figure 26: Main monitored media advertising expenditure on organic food and soft drinks ranges, by media type, 2004
- Altogether Better more wholesome
- Yeo Valley focus on taste credentials
- Environmentally inspired
- Below the line promotions
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- Figure 27: Types of promotion in the organic foods and soft drinks ranges, July 2004-05
- Organic advertisers may be able to make greater claims in the future
- 2005 Organic Week most successful yet
Distribution
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- Figure 28: UK retail sales of organic food and non-alcoholic drink, by outlet and value, 2000 and 2004
- Commitment varies by retailer
- Sainsbury’s
- Tesco
- Asda
- Co-op
- Waitrose
- Local and direct sales take a bigger share of the market
- Independent retailers set to grow
- E-tailing
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The Consumer – Assessing Enthusiasm
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- Figure 29: Types of organic food purchased in the last 12 months, July/August 2001, 2003 and 2005
- Fresh produce is still the most popular
- ABs dominate
- Widening the net to include C1s
- Growing old organically
- Targeting the younger consumer
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- Figure 30: Types of organic food purchased in the last 12 months by ABC1 pre-/no family adults, compared with average response, July/August 2005
- Suggestions for linked promotions
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- Figure 31: Types of organic food purchased in the last 12 months by ABC1 families, compared with average response, July/August 2005
- South West popularity
- Below-average in Scotland and East Midlands
- Retailer commitment
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The Consumer – Assessing Enthusiasm – Detailed Demographics
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- Popularity of different organic food types
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- Figure 32: Top four types of organic food purchased in the last 12 months, by gender, age, socio-economic group, Age and Social Grade, Mintel's Special Groups, region, household size, marital status, working status and presence of children, July/August 2005
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- Figure 33: Top four types of organic food purchased in the last 12 months, by ACORN category, media usage, household size, Internet usage, commercial TV viewing and supermarket usage, July/August 2005
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- Figure 34: Types of organic food purchased in the last 12 months, by gender, age, socio-economic group, Mintel's Special Groups, region, household size, marital status, working status and presence of children, July/August 2005
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- Figure 35: Types of organic food purchased in the last 12 months, by ACORN category, media usage, commercial TV viewing, Internet usage and supermarket usage, July/August 2005
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- Figure 36: Types of organic food purchased in the last 12 months, by gender, age, socio-economic group, lifestage, Mintel's Special Groups, region, household size and presence of children, July/August 2005
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- Figure 37: Types of organic food purchased in the last 12 months, by ACORN category, media usage, commercial TV viewing, Internet and supermarket usage, July/August 2005
- Cross-analysis of food types
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- Figure 38: Cross-analysis of organic food types purchased in the last 12 months, July/August 2005
The Consumer –Attitudes and Motivations
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- Figure 39: Attitudes towards organic food and drink, July/August 2005
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- Figure 40: Consumer typologies relating to organic food, July/August 2005
- Health and safety are more important than the environment
- Does organic food taste better?
- Reticents (24% of respondents) need to be convinced
- Higher prices are holding back sales
- Price Deterred (21% of respondents)
- Price Deterred could be switched on to dairy
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- Figure 41: Shopping habits of Consumer typologies relating to organic food, April 2005
- The caring consumer
- The Dismissives (37% of respondents)
- Food miles count with the consumer
- Consumer wish-list puts locally sourced produce first
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- Figure 42: Supermarket priorities among organic shoppers, July/August 2005
- Expanding repertoires
- Vegetables, fruit and dairy are important to sole purchasers
- Converting parents to consumers
- Towards seven items and beyond
- Fans (8% of respondents)
- More widespread availability will invariably boost sales
- Correlation with shopping habits
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- Figure 43: Shopping habits of consumer typologies relating to organic food, July/August 2005
- Conclusion
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Attitudes and Motivations: Detailed Demographics
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- Attitudes to organic produce
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- Figure 44: Attitudes to organic produce, by gender, age, socio-economic group, Mintel’s Special Groups, region, marital and working status, presence of children and household size, July/August 2005
- Figure 45: Attitudes to organic produce, by ACORN category, media usage, Internet usage, commercial TV viewing and supermarket usage, July/August 2005
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- Figure 46: Attitudes to organic produce, by gender, age, socio-economic group, Mintel’s Special Groups, region, marital and working status, presence of children and household size, July/August 2005
- Figure 47: Attitudes to organic produce, by ACORN category, media usage, Internet usage, commercial TV viewing and supermarket usage, July/August 2005
- Consumer typologies
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- Figure 48: Consumer typologies, by gender, age, socio-economic group, lifestage, Mintel’s Special Groups and working status, July/August 2005
- Figure 49: Consumer typologies, by ACORN category, media usage, presence of children and commercial TV viewing, July/August 2005
- Repertoire demographics
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- Figure 50: Attitudes to organic produce, by gender, age, socio-economic group, lifestage, Mintel’s Special Groups, region, working status and presence of children, July/August 2005
- Figure 51: Attitudes to organic produce, by ACORN category, media usage, commercial TV viewing and supermarket usage, July/August 2005
- Repertoire analysis
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- Figure 52: Importance of individual organic products in repertoires, July/August 2005
- Figure 53: Repertoire of types of organic produce purchased in the last 12 months, July/August 2005
The Future
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- A louder voice for organics
- Targeting tastebuds
- Standing out on the health platform
- Open to new entrants
- Differentiation
Forecast
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- Figure 54: Forecast of UK retail sales of organic food and non-alcoholic drink, 2005-10
- Factors used in the forecast
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