Table of Contents
Issues in the Market
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- Key themes
- Definition
- Abbreviations
Insights and Opportunities
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- Organic: Not just for infants
- Natural beauty
Fast Forward Trends
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- Sustainability's Evolutionary Tree
- What we have seen
- What next ?
- Born Green
- What we have seen
- What next?
Market in Brief
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- Growth slows but is still impressive in 2008
- Milk and yoghurts propel dairy as fastest growing category
- Box schemes steal supermarket share
- Further threats to sector growth
- Market insights
- The future
Internal Market Environment
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- Key points
- Health claims dispute continues
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- Figure 1: Agreement with selected lifestyle statements, 2004-08
- What then for consumers?
- Burgeoning kids’ organic sector boosted by health concerns
- Pesticide and antibiotics linked to human illness
- Technology tackling organic fraud
- Ethical row rages on over organic imports
- Provenance assumes greater importance
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- Figure 2: Agreement with selected lifestyle statements, 2004-08
- Organic sector sustains casualties in 2008
- Media attention diverts shoppers towards other ethical categories
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- Figure 3: Agreement with selected lifestyle statements, 2004-08
Broader Market Environment
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- Key points
- Economic gloom sets in
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- Figure 4: Changes in socio-economic groups, 2003-13
- Soaring production costs hamper organic conversion rate
- Smaller household demands not always met
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- Figure 5: Changes in UK household size, 2003-13
- Communicating organic to younger shoppers
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- Figure 6: UK population trends by age, 2003-13
- Regulations
- EC drops ‘bio’ logo
- Nitrate proposals threaten bacon and ham production
- Jury is out on organic for the FSA
- Green credentials: Implicit with organic?
- Communicating welfare standards
- Tackling broader issues
Competitive Context
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- Key points
- Competitive ethical categories come to the fore
- Organic: a key premium claim
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- Figure 7: Summary of market strategies in other specialist food markets, 2008
Strengths and Weaknesses in the Market
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- Strengths
- Weaknesses
Who’s Innovating?
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- Key points
- Activity escalates in 2008
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- Figure 8: New product launches with an organic product claim – UK, January 2006-September 2008
- Bakery goods lead new product launches
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- Figure 9: Organic foods launched, by category – UK, January 2006-September 2008
- Mum knows best
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- Figure 10: Top organic baby food and drink brand launches – UK, January 2006-September 2008
- Natural snacks and desserts
- Growth in health foods boosts new cereal launches
- Boosting the premium indulgence market
- Global flavours inspire meat and ready meals
- Speciality producers gain listings with prepared foods
Market Value and Forecast
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- Key points
- Pace of growth slows
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- Figure 11: UK retail value sales of organic foods, 2003-08
- A bright future forecast for quality producers
- Market slows with economy
- More challenging times ahead
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- Figure 12: Forecast of uk retail value sales of organic foods, at current prices, 2003-13
Segment Performance
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- Key points
- Dairy leads segment growth
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- Figure 13: UK retail sales of organic food, by type and value, 2004-08
- Organic produce outperforms market
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- Figure 14: UK retail sales of organic fruit and vegetables, by value, 2003-08
- ...but deflation, supply issues and ‘toxic’ reports hamper category
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- Figure 15: UK retail sales of organic fruit and vegetables, by type and value, 2004-08
- Bolstering dairy sales
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- Figure 16: UK retail sales of organic dairy products, by value, 2003-08
- Buoyant milk sales threatened by uncertain future
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- Figure 17: UK retail sales of organic dairy products, by type and value, 2004-08
- Domestic yoghurt brands elbow out the competition
- Competition mounts in the butter category
- Mainstream organic spreads its wings
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- Figure 18: UK retail sales of organic prepared foods and groceries, by value, 2003-08
- Free-for-all drives ambient sales
- Frozen foods suffer; chilled may follow
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- Figure 19: UK retail sales of organic prepared foods and groceries, by type and value, 2004 -08
- Solid growth for meat but sales are now sliding
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- Figure 20: UK retail sales of organic meat and poultry, by value, 2003-08
- Organic meat imports increase and British farmers struggle
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- Figure 21: UK retail sales of organic meat, poultry and fish, by type and value, 2004-08
- Strong growth for organic bread
- Buoyant cereals market attracts new entrants
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- Figure 22: UK retail sales of organic breads, bakery produce and cereals, by value, 2003-08
- Nothing but organic for babies
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- Figure 23: UK retail sales of organic baby food and infant formula, by value, 2003-08
- Cracks appearing in the organic egg market
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- Figure 24: UK retail sales of organic eggs, by value, 2003-08
- Dairy products to lead growth
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- Figure 25: Forecast of uk retail value sales of organic foods by type, at current prices, 2003-13
- Figure 26: Forecast of uk retail value sales of organic foods by type, at 2008 prices, 2003-13
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- Figure 27: Percentage share of segments within the uk organic food market, 2003, 2008 and 2013
Product Positioning
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- Key points
- Great variation in fresh produce
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- Figure 28: Price comparison of organic vs standard fruit and vegetable ranges, October 2008*
- Premiums of around a third for dairy
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- Figure 29: Price comparison of organic vs standard dairy ranges, October 2008
- Bargain beans and premium peas
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- Figure 30: Price comparison of organic vs standard prepared foods, October 2008
- Chickens priced out of the credit crunch market
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- Figure 31: Price comparison of organic vs standard meat and poultry, October 2008
- Small premiums for standard bread and cereal lines
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- Figure 32: Price comparison of organic vs standard bread and cereal ranges, October 2008
- Organic baby food: surprisingly affordable
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- Figure 33: Price comparison of organic vs standard baby food and formula, October 2008
Companies and Products
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- Fruit and vegetables
- Organic Farm Foods
- Pollybell Organic Farm
- Produce World
- Dairy products
- Lurpak
- Rachel’s Organic
- Yeo Valley
- Eggs
- Noble Foods
- Prepared foods
- Duchy Originals
- Heinz
- Seeds of Change
- Simply Organic
- Chocolate
- Green & Black's
- Montezuma's
- Traidcraft
- Meat and poultry
- Friland
- Higher Hacknell Farm
- Laverstoke Park Farm
- Rhug Estate
- Cereals
- Jordans
- Baby food and infant formula
- Ella's Kitchen
- HiPP
- Organix
- Peter Rabbit Organics
- Plum
- Trade bodies
Brand Elements
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- Brand map
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- Figure 1: Attitudes and usage of organics brands, August 2008
- Duchy Originals
- What the brand is trying to achieve
- What the consumer thinks
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- Figure 2: Attitudes towards the Duchy Originals brand, August 2008
- Seeds of Change
- What the brand is trying to achieve
- What the consumer thinks
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- Figure 3: Attitudes towards the Seeds of Change brand, August 2008
- Rachel’s Organic
- What the brand is trying to achieve
- What the consumer thinks
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- Figure 4: Attitudes towards the Rachel's Organic brand, August 2008
- Yeo Valley Organic
- What the brand is trying to achieve
- What the consumer thinks
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- Figure 5: Attitudes towards the Yeo Valley Organic brand, August 2008
- Green & Black’s
- What the brand is trying to achieve
- What the consumer thinks
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- Figure 6: Attitudes towards the Green & Black's brand, August 2008
- Brand Qualities of organics brands
- Duchy Originals, Waitrose Organic and Green & Blacks are most expensive
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- Figure 7: Personalities of various Organics brands, August 2008
- Experience of organics brands
- Green & Black's is most popular
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- Figure 8: Consumer usage of various Organics brands, August 2008
- Brand intentions for organics brands
- Green & Black's has best customer retention.
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- Figure 9: Consideration of various Organics brands, August 2008
- Brand momentum for organics brands
- Green & Black's is gaining most ground.
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- Figure 10: Momentum of various Organics brands, August 2008
- Brand satisfaction for organics brands
- Green & Black's has highest excellent satisfaction.
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- Figure 11: Satisfaction with various organics brands, August 2008
- Brand commitment to organics brands
- Green & Black's wins again on commitment
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- Figure 12: Commitment to various organics brands, August 2008
- Round up
Brand Communication and Promotion
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- Key points
- Record spend expected in 2008
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- Figure 34: Main monitored media advertising expenditure on organic foods, 2004-08*
- Brands fight back against own-label invasion
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- Figure 35: Top 10 main monitored media advertising expenditure by organic brands, 2004-08
- M&S leads retailer spend on organics
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- Figure 36: Top 10 main monitored media advertising expenditure by retailers on organic foods, 2004-08
- Trade bodies
- Federation of Organic Milk Groups
- OMSCo
- European Commission
- Organic Trade Board
Channels to Market
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- Key points
- Box schemes deliver market share growth
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- Figure 37: UK retail sales of organic food, by outlet and value, 2006-08
- Organic goes mainstream
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- Figure 38: Summary of grocery retailer organic targets/initiatives, October 2008
- Economic hardship fails to quell growth of small chains
- Box schemes proliferating
- Farmers’ markets: more sales, more often
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- Figure 39: How often adults shop at farmers’ markets, 2007
The Consumer – Organic Foods Preferences
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- Key points
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- Figure 40: Factors taken into account when buying food, July 2008
- Organic low on the radar for shoppers
- Organic vs. locally sourced
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- Figure 41: Profile of those stating locally sourced and organic as key considerations, July 2008
- Fruit, eggs and convenience choices
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- Figure 42: Types of organic products purchased in the last 12 months, July 2008
- Opportunities to expand organic foods bought
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- Figure 43: Number of different types of organic products purchased in the last 12 months, July 2008
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- Figure 44: Repertoire of organic foods bought and key considerations in food purchase, July 2008
The Consumer – Attitudes and Motivations
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- Key points
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- Figure 45: Agreement with statements about organic foods, July 2008
- Cost and confusion turn consumers off
- Credit crunch pushes organic spending down
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- Figure 46: Effects of current economic climate on purchasing habits of organic food, July 2008
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- Figure 47: Selected demographics and their purchasing decisions faced with the current economic climate, July 2008
Organic Foods – Further Insights
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- Key points
- Identifying attitudinal clusters
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- Figure 48: Positive and negative attitudes towards organic foods, July 2008
- Figure 49: Consumer groups based on attitudes towards organic foods, July 2008
- Target groups
- Very positive (10% of respondents)
- Positive (29% of respondents)
- Balanced (11% of respondents)
- Negative (35% of respondents)
- Unconcerned (15% of respondents)
- Targeting groups
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- Figure 50: CHAID analysis on attitdues towards organic foods, July 2008
Appendix
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- Advertising data
Appendix – Internal Market Environment
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- Figure 51: Agreement statement “It is worth paying more for organic food”, by total family income before tax, 2008
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Appendix – Broader Market Environment
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- Figure 52: PDI and consumer expenditure, at constant 2003 prices, 2003-13
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Appendix – Who’s Innovating?
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- Figure 53: New product launches in Europe with an organic product claim, January 2006-July 2008
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Appendix – Companies and Products
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- Bread and cereals
- The Celtic Bakers
- Honeyrose Bakery
- Pertwood Organic
- True Loaf Baker
- White's
- Other dairy products
- Calon Wen
- The Dairy House
- Graham's The Family Dairy
- Other prepared foods
- Billington's
- Fresh! Naturally Organic
- Kallo Foods
- Suma
- The English Provender Company
- Venture Foods
- Yumbles
Appendix – Channels to Market
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- Figure 54: How often adults shop at local markets, by demographics, 2007
- Figure 55: How often adults shop at farmers’ markets, by demographics, 2007
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Appendix – The Consumer: Organic Foods Preferences: Detailed Demographics
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- Figure 56: Factors taken into account when buying food by detailed demographics, July 2008
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- Figure 57: Factors taken into account when buying food by detailed demographics, July 2008
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- Figure 58: Factors taken into account when buying food by detailed demographics, July 2008
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- Figure 59: Cross tab for Factors taken into account when buying food, July 2008
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- Figure 60: Cross tab for Factors taken into account when buying food, and things consumers look for in the food purchased, July 2008
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- Figure 61: Types of organic products purchased in the last 12 months, by detailed demographics, July 2008
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- Figure 62: Types of organic products purchased in the last 12 months, by detailed demographics, July 2008
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- Figure 63: Types of organic products purchased in the last 12 months, by detailed demographics, July 2008
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- Figure 64: Types of organic products purchased in the last 12 months, detailed demographics, July 2008
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- Figure 65: Types of organic products purchased in the last 12 months, by detailed demographics, July 2008
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Appendix – The Consumer: Attitudes and Motivations: Detailed Demographics
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- Figure 66: Agreement with statements about organic foods, by detailed demographics, July 2008
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- Figure 67: Agreement with statements about organic foods, detailed deomgraphics, July 2008
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- Figure 68: Effects of current economic climate on purchase habits of organic food, by detailed demographics, July 2008
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Appendix – Organic Foods: Further Insights: Detailed Demographics
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- Figure 69: Number of different types of organic products purchased in the last 12 months, by types purchased , July 2008
- Figure 70: Number of different types of organic products purchased in the last 12 months, by factors taken into account when buying food, July 2008
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- Figure 71: Number of different types of organic products purchased in the last 12 months, by agreement with attitudes towards organic foods , July 2008
- Figure 72: Number of different types of organic products purchased in the last 12 months, by intention to purchase organic food over the next year, July 2008
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- Figure 73: Number of different types of organic products purchased in the last 12 months by detailed demographics, july 2008
- Figure 74: Target groups by agreement with attitudes towards organic foods, July 2008
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- Figure 75: Target groups, by factors taken into account when buying food, July 2008
- Figure 76: Target groups, by types of organic products purchased in the last 12 months, july 2008
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- Figure 77: Target groups, by number of different types of organic products purchased in the last 12 months, July 2008
- Figure 78: Target groups, by intention to purchase organic food over the next year, July 2008
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- Figure 79: Target groups by demographics, July 2008
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