Table of Contents
Issues in the Market
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- Definition
- Four key points:
Insights and Opportunities
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- Young consumers
- Organic occasions
- The appliance of science
- The Italian job
Fast Forward Trends
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- Premium and Cut-throat
- What's it about?
- Specifics
- Market touchpoints/implications
- Brand Experience
- What's it about?
- What we've seen
- Market touchpoints/implications
Market in Brief
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- Consumer trends boost market growth
- Supply fails to meet demand
- Dairy provides organic model
- Box schemes flourish
- The ethical organic consumer – competitive or complementary?
- Health claims to drive consumer take-up
Internal Market Environment
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- Key points
- Paying the price of organic food
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- Figure 1: Agreement with selected lifestyle statements, 2003-07
- Health and food labelling
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- Figure 2: Agreement with selected lifestyle statements, 2003-07
- Premiumisation
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- Figure 3: Agreement with selected lifestyle statements, 2003-07
- Provenance is prized…
- …as is the environment
- The media, food production and food scares
- Supply issues
- Organic conversion
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- Figure 4: UK land under conversion vs fully organic land, 2005 and 2006
- Shortage of British producers
Broader Market Environment
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- Key points
- Demographic changes
- AB socio-economic status is growing but more slowly
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- Figure 5: Changes in socio-economic status, 2002-07 and 2007-12
- Population age
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- Figure 6: Changes in the UK demographic profile, by age, 2002-07 and 2007-12
- Organic – scientifically healthy or a lifestyle choice
- Organic Brussels
Competitive Context
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- Key points
- Shopping is the new politics
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- Figure 7: UK retail sales of ethical foods, 2002-06
- Ethical dilemma
- When two become one?
- Local sourcing preferred
- Too much chicken choice
- Healthy competition
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- Figure 8: UK growth rates of healthy foods, 2002-06
Strengths and Weaknesses in the Market
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- Strengths
- Weaknesses
Who’s Innovating?
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- Key points
- Organic baby food
- Children’s
- Ready meals/convenience
- Premium/indulgent
- Added production values
Market Value and Forecast
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- Key points
- Booming organic growth
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- Figure 9: UK retail value sales of organic food, 2002-07
- Availability drives growth
- The future
- Good growing conditions
- Capitalising on food trends
- But what about the economy?
- The science of organics
- Opportunities for land conversion
- Continued strong growth set to take market value pass £2 billion in 2011
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- Figure 10: UK sales of organic food, 2002-12
- Greater switch over from conventional foods into organics
- Factors used in the forecast
Segment Performance and Forecast
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- Key points
- Market breakdown
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- Figure 11: UK retail sales of organic food, by type and value, 2003-07
- Fruit and vegetables
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- Figure 12: UK retail sales of organic fruit and vegetables, by value, 2002-07
- Outpacing conventional market growth
- Prepacked dominates
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- Figure 13: UK retail sales of organic fruit and vegetables, by type and value, 2003-07
- Fruit buoyant
- Green light for vegetables
- Healthy potential
- Organic dairy products
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- Figure 14: UK retail sales of organic dairy products, by value, 2002-07
- Dairy doubles
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- Figure 15: UK retail sales of organic dairy products, by type and value, 2003-07
- Dairy desserts and yogurts
- Milk
- Cheese
- Butter, cream and ice cream
- Brands are key to future growth
- Prepared foods and groceries
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- Figure 16: UK retail sales of organic prepared foods and groceries, by value, 2002-07
- Prepared to grow
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- Figure 17: Segmentation of organic prepared foods and groceries market, by value, 2007
- Ambient groceries
- Chilled food eg ready meals
- Frozen foods
- Chocolate
- Meat and poultry
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- Figure 18: UK retail sales of organic meat and poultry, by value, 2002-07
- Organic meats represent quality
- Premium choice
- Demand outstrips supply
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- Figure 19: UK retail sales of organic meat and poultry, by type and value, 2003-07
- Beef
- Pork
- Poultry
- Lamb
- Cooked/processed meats and meat products
- Fish
- Organic bread and cereals
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- Figure 20: UK retail sales of organic breads and cereals, by value, 2002-07
- Breads
- Cereals
- Baby food and infant formula
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- Figure 21: UK retail sales of organic baby food and infant formula, by value, 2002-07
- Baby foods get bigger
- Eggs
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- Figure 22: UK retail sales of organic eggs, by value, 2002-07
- Egg supply fragile
- Segmented sector represents competition
- Forecast
- Continued strong growth set to take market value pass £2 billion in 2011
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- Figure 23: Forecast of UK retail value sales of organic food, at current prices from 2007-12
- Figure 24: Forecast of UK Retail value sales of Organic food, at 2007 prices from 2007-12
- Figure 25: Forecast of UK retail value sales of organic foods, in euros, 2007-12
- Greater switch over from conventional foods into organics
- Dairy and Meat & Poultry will be the fastest growing segments
- Change of shares within the organics food market
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- Figure 26: Percentage share of segments within the UK organics food market, 2002-2012
- Figure 27: Percentage share of segments within the UK organics food market
- Factors used in the forecast
Product Positioning
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- Key points
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- Figure 28: Price positioning in specified food sectors, 2007
- Organic and premium head to head
Companies and Products
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- Companies and brands
- Fruit and vegetables
- Geest (Bakkavör)
- Organic Farm Foods
- Riverford Organic Vegetables
- Dairy products
- OMSCo
- Rachel’s Organic
- Yeo Valley
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- Figure 29: Organic yogurt and fromage frais market share, 2006
- Prepared foods
- Duchy Originals
- Green & Black’s
- Kallo Foods
- Meat and poultry
- Bernard Matthews
- Helen Browning Organics
- Organic bread and cereals
- Doves Farm
- Jordans
- Baby food and infant formula
- HiPP
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- Figure 30: Organic baby food market, by brand, 2006
- Organix
- Eggs
- Deans Foods
- Others
- Seeds of Change
Brand Communication and Promotion
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- Key points
- Adspend is low
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- Figure 31: Main monitored media advertising expenditure on organic foods, 2003-07
- Adspend grows
- Few big spenders
- Big brands dominate
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- Figure 32: Top organic spenders’ main monitored media advertising expenditure, 2006
- Own-label relies on brand awareness
Channels to Market
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- Key points
- Multiples lead the way
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- Figure 33: UK retail sales of organic food, by outlet and value, 2005-07
- Retailers get into boxes
- Retailer commitment
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- Figure 34: Summary of grocery retailer organic target/initiatives, October 2007
- Box schemes
- Independents
- E-tailing
Consumer 1 – Who – Usage and Frequency?
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- Key points
- Purchase of organic foods
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- Figure 35: Organic foods purchased in the last 12 months, 2007
- Fruit and veg provide entry point
- Women and ABs shop organically
- North of the Watford Gap
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- Figure 36: Purchasing prevalence of any organic food, by gender, region and socio-economic group, September 2007
- Convenience organics profile is not so distinct
- Repertoire analysis – Who are the keenest organic consumers?
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- Figure 37: Repertoire of organic products bought, September 2007
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- Figure 38: Propensity to buy seven or more organic foods, by newspaper readership, household income and supermarket used, September 2007
- Retailer commitment encourages purchase
Consumer 2 – Attitudes Towards Organic Foods
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- Key points
- To buy or not to buy
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- Figure 39: Reasons for buying organic food, by number of organic products purchased, September 2007
- Healthy reasons to buy
- Collective ethics
- Who buys for what reasons?
- Older and younger consumers
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- Figure 40: Reasons for buying organic food, by specific age groups, September 2007
- Competitive arena
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- Figure 41: Agreement with statements about organic vs non-organic food, by number of organic food groups purchased from, September 2007
- Location, location, location
- Over-55s go alternative
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- Figure 42: Agreement with statement ‘Where I buy my food from (eg farmers’ market, farm shop, local butcher/greengrocer) is more important than it being organic’, by age, socio-economic group and newspaper readership, September 2007
- But what about fair trade?
The Consumer 3 – Reasons for not Buying Organic Food
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- Key points
- Saying no to organic
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- Figure 43: Reasons for not buying organic food, September 2007
- Cost is primary barrier to purchase
- Spotting the difference?
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- Figure 44: Those who do not buy organic food because it is too expensive, by gender, age and socio-economic group, September 2007
The Consumer 4 – Pan-European Overview
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- Key points
- Organic fruit and vegetables are the number one choice
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- Figure 45: Organic foods purchased in the last 12 months, by country, September 2007
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- Figure 46: Average spend per adult (aged 15+) on organic food, by country, 2002 and 2007
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- Figure 47: Purchasing of organic foods, by country, September 2007
- GB organic consumers are keenest on special offers
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- Figure 48: Reasons for buying organic foods, by country, September 2007
- Least concern about food miles, and strong support for local suppliers
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- Figure 49: Attitudes towards organic vs non-organic foods, by country, September 2007
- Higher prices are the biggest turnoff
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- Figure 50: Reasons for not buying organic foods, by country, September 2007
Appendix
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- Internal market environment
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- Figure 51: Fully organic farmed land in the UK, 2006-07
- Figure 52: Agreement with selected lifestyle statements, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, technology usage, household size and car usage, 2007
- Figure 53: Agreement with selected lifestyle statements, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, technology usage, household size and car usage, 2007
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- Figure 54: Agreement with selected lifestyle statements, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, technology usage, household size and car usage, 2007
- Figure 55: Ever shop at a farmers’ market, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, technology usage, household size and car usage, 2007
- The consumer 1 – Who, usage and frequency?
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- Figure 56: Propensity to buy any organic food, by gender, age, region, socio-economic group, newspaper readership, household income, presence of children, Internet usage, supermarket usage, mobile provider and TV reception, September 2007
- Figure 57: Organic foods purchased in the last 12 months, by gender, age, region, socio-economic group, daily newspaper readership, Sunday newspaper readership, household income, presence of children, Internet usage, supermarket usage, mobile provider and TV reception, September 2007
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- Figure 58: Organic foods purchased in the last 12 months, by gender, age, region, socio-economic group, daily newspaper readership, Sunday newspaper readership, household income, presence of children, Internet usage, supermarket usage, mobile provider and TV reception, September 2007
- Figure 59: Organic food purchased in the last 12 months, by gender, age, region, socio-economic group, daily newspaper readership, Sunday newspaper readership, household income, presence of children, Internet usage, supermarket usage, mobile provider and TV reception, September 2007
- Repertoire of products bought
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- Figure 60: Number of different types of organic foods bought in the last 12 months, by gender, age, region, socio-economic group, daily newspaper readership, household income, presence of children, Internet usage, supermarket usage, mobile provider and TV reception, September 2007
- The consumer 2 – attitudes and motivations
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- Figure 61: Attitudes towards organic foods, by gender, age, region, socio-economic group, daily newspaper readership, Sunday newspaper readership, household income, presence of children, Internet usage, supermarket usage, mobile provider and TV reception, September 2007
- Figure 62: Attitudes towards organic foods, by gender, age, region, socio-economic group, daily newspaper readership, Sunday newspaper readership, household income, presence of children, Internet usage, supermarket usage, mobile provider and TV reception, September 2007
- Competitive arena
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- Figure 63: Attitudes towards organic food, by gender, age, region, socio-economic group, daily newspaper readership, Sunday newspaper readership, household income, presence of children, Internet usage, supermarket usage, mobile provider and TV reception, September 2007
- The consumer 3 – reasons for not buying
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- Figure 64: Reasons for not purchasing organic food, by gender, age, region, socio-economic group, daily newspaper readership, Sunday newspaper readership, household income, presence of children, Internet usage, supermarket usage, mobile provider and TV reception, September 2007
- Figure 65: Reasons for not purchasing organic food, by gender, age, region, socio-economic group, daily newspaper readership, Sunday newspaper readership, household income, presence of children, Internet usage, supermarket usage, mobile provider and TV reception, September 2007
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