Table of Contents
Introduction
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- Definition
- Abbreviations
Executive Summary
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- The market
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- 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
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- 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
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- Figure 4: Changes in organic food and drink purchases, July 2012
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- 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
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- Figure 6: Types of organic food and drink purchased, July 2012
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- 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
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- 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
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- 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
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- 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
Issues in the Market
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- Should a stronger emphasis be placed on animal welfare within the organic message?
- How important are under-25s to the organic market?
- What is driving consumer scepticism towards the organic label?
- Will baby food continue to defy the downturn in spending on organic?
Trend Application
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- Trend: Greenfluencers
- Trend: Guiding Choice
- 2015 trend: East Meets West
Market Drivers
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- Key points
- Animal welfare is the top food issue
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- Figure 11: Food-related issues seen as important, January 2012
- With budgets under pressure, fewer people are willing to pay more
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- Figure 12: Agreement with the statement ‘It’s worth paying more for organic food’, 2008-12
- Strong slant towards ABs among those ready to pay more for organic
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- Figure 13: Agreement with the statement ‘It’s worth paying more for organic food’, by age and socio-economic group, 2012
- Gender divide seen in interest in food-related issues
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- Figure 14: Agreement with selected lifestyle statements, by gender, 2012
- EU strikes new organic trade deal with US
- Organic is hit by commodity inflation
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- Figure 15: Annual average wholesale prices of breadmaking wheat, barley, farmgate price of milk, UK, 2005-11
- The shifting population structure presents challenges and opportunities
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- Figure 16: Trends in the age structure of the UK population, 2007-17
- Growth in ABs should boost the market
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- Figure 17: Forecast adult population trends, by socio-economic group, 2007-17
- Return to growth in consumer spending will benefit the market
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- Figure 18: GDP, PDI, consumer expenditure and savings, at constant 2012 prices, 2007-17
Strengths and Weaknesses in the Market
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- Strengths
- Weaknesses
Who’s Innovating?
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- Key points
- Organic food and drink NPD continues decline
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- Figure 19: Share of organic products in all food and drink NPD, January 2009-June 2012
- Figure 20: Share of organic products in all food and drink NPD, by category, 2011
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- Figure 21: Top 15 brands, by share of launches in the UK organic food and drink market, 2009-2011
- Private label grows NPD share in 2011, but brands still have the lead
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- Figure 22: Share of private label in UK organic food and drink launches, January 2009-June 2012
- Organic breakfast cereals NPD plummets
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- Figure 23: Share of organic products in total NPD in baby food and breakfast cereals, January 2009-June 2012
- Baby food tops the ranks for organic NPD
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- Figure 24: Selection of organic baby food NPD
Market Size and Forecast
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- Key points
- Organic food sales nosedived in the recession
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- Figure 25: UK retail value sales of organic food, 2007-17
- Further decline predicted in a challenging landscape
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- Figure 26: UK retail value sales of organic foods, 2007-17
- Growth of over-55s and C2s poses a threat to the market
- Factors used in the forecast
Segment Performance
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- Key points
- Fruit and vegetables and dairy dominate
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- Figure 27: UK retail value sales of organic foods, by category, 2012
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- Figure 28: Year-on-year % change in organic food sales, by category, 2011 and 2012
- Baby food continues to buck the declining sales trend
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- Figure 29: UK retail sales of organic baby food and infant formula, by value, 2007-17
- Fruit and vegetables
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- Figure 30: UK retail sales of organic fruit and vegetables, by value, 2006-10
- Dairy
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- Figure 31: UK retail sales of organic dairy products, by value, 2007-17
- Meat, fish and poultry
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- Figure 32: UK retail sales of organic meat, poultry and fish, by value, 2007-17
- Breads, bakery and cereals
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- Figure 33: UK retail sales of organic breads, bakery produce and cereals, by value, 2007-17
- Eggs
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- Figure 34: UK retail sales of organic eggs, by value, 2007-17
- Organic drinks
Companies and Products
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- Rachel’s
- Yeo Valley
- Duchy Originals from Waitrose
- Seeds of Change
- Organix
- Green & Black’s
- Ethical Fruit Company
- The Soil Association
- The Organic Trade Board
Brand Communication and Promotion
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- Key points
- An uptick in adspend in 2011
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- Figure 35: Main monitored media advertising expenditure on organic foods and drink, by selected leading organic brands, 2008-11
- Rachel’s bursts onto the advertising scene in 2011
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- Figure 36: Advertising expenditure on organic foods, by company, selected advertisers, 2008-11
- Figure 37: Share of advertising expenditure on organic foods, by company, selected advertisers, 2008-11
- Baby food brands feature strongly
- Waitrose is the only multiple to invest in organic
- TV advertising dominates
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- Figure 38: Advertising expenditure on organic foods, by media, selected advertisers, 2008-12*
- Figure 39: Share of advertising expenditure on organic foods, by media, selected advertisers, 2008-12*
- Organic. Naturally different
Channels to Market
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- Key points
- Multiples dominate the organic market
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- Figure 40: UK retail value sales of organic foods, by outlet type, 2009-11
- Box schemes and online tell a positive story
The Consumer – Usage of Organic Food and Drink
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- Key points
- Organic continues to have a broad appeal
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- Figure 41: Changes in organic food and drink purchases, July 2012
- Under-25s and ABs are the core purchasers of organic
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- Figure 42: Buyers of organic food and drink, by gender, age and socio-economic group, July 2012
- Growing purchases of organic among under-25s
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- Figure 43: Consumers who are buying more organic food than last year, by gender, age and socio-economic group, July 2012
- Tight finances have caused shoppers to cut back on organic
The Consumer – Types of Organic Food Purchased
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- Key points
- Vegetables and fruit are most popular organic foods
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- Figure 44: Types of organic food and drink purchased, July 2012
- Eggs rank higher than meat, poultry and dairy
- Under-25s are the keenest buyers in most organic sectors
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- Figure 45: Selected types of organic food and drink purchased, by age group, July 2012
- A third of parents with under-fives buy organic baby food
- Women are core buyers in the main organic sectors
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- Figure 46: Types of organic food and drink purchased, by gender, July 2012
- Six in ten users have a repertoire of four or less products
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- Figure 47: Repertoire of types of organic food and drink purchased, July 2012
The Consumer – Comparisons between Organic and Non-Organic Food and Drink
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- Key points
- Cynicism over price
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- Figure 48: Differences between organic and non-organic food and drink, July 2012
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- Figure 49: Differences between organic and non-organic food and drink, any agree, by users and non-users of organic food and drink, July 2012
- Chemical-free is the best-known attribute
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- Figure 50: Consumers who think that organic food has fewer chemicals, is natural and is better for the environment compared to non-organic food, by gender and age group, July 2012
- Animal welfare is less on the radar, despite its importance to shoppers
- The health credentials of organic food divide the nation
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- Figure 51: Consumers who agree that organic food/drink is healthier, by gender and age of children, July 2012
- Large minority prefer the taste of organic
- A third see no benefits to organic
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- Figure 52: Consumers who see organic food/drink as having no benefits over non-organic, by gender, July 2012
The Consumer – Attitudes Towards Buying Organic Food and Drink
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- Key points
- Organic vegetable boxes suffer from perceptions of poor value for money
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- Figure 53: Attitudes towards buying organic food and drink, July 2012
- Other animal welfare labels present competition
- Under-25s are hungry for more information
- A fifth have never considered buying organic
- Under-35s and ABs want more choice
- Under-25s are most open to other channels
The Consumer – Attitudes Towards Organic Food and Drink
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- Key points
- Price is the sticking point
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- Figure 54: Attitudes towards organic food and drink, by gender, July 2012
- A large minority sees the organic message as too vague
- Parents with young children care most about chemicals
- Organic labelling needs to build awareness
- The organic message can be seen as a fashion statement
- Consumers don’t view organic farming as unsustainable
The Consumer – Target Groups
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- Key points
- Four target groups
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- Figure 55: Target groups based on attitudes towards organic food and drink, July 2012
- Environmentally-friendly (20%)
- Unconvinced (45%)
- Enthusiasts (15%)
- Sceptical (20%)
Appendix – Market Drivers
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- Figure 56: Agreement with selected lifestyle statements, 2008-12
- Figure 57: Agreement with selected lifestyle statements, by demographics, 2012
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Appendix – The Consumer – Usage of Organic Foods
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- Figure 58: Changes in organic food and drink purchases, by demographics, July 2012
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Appendix – The Consumer – Types of Organic Food and Drink Purchased
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- Figure 59: Most popular types of organic food and drink purchased, by demographics, July 2012
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- Figure 60: Next most popular types of organic food and drink purchased, by demographics, July 2012
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- Figure 61: Other types of organic food and drink purchased, by demographics, July 2012
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- Figure 62: Repertoire of types of organic food and drink purchased, by demographics, July 2012
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Appendix – The Consumer – Comparison between Organic and Non-Organic Food and Drink
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- Figure 63: Agreement with the statements ‘Organic food/drink has fewer chemicals’ and ‘Organic food/drink is natural’, by demographics, July 2012
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- Figure 64: Agreement with the statements ‘Organic food/drink is unprocessed’ and ‘Organic food/drink is natural’, by demographics, July 2012
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- Figure 65: Agreement with the statements ‘Organic food/drink is better for the environment’ and ‘Organic food/drink tastes better’, by demographics, July 2012
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- Figure 66: Agreement with the statements ‘Organic food/drink is safer to eat’ and ‘Organic farming ensures high animal welfare’, by demographics, July 2012
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- Figure 67: Agreement with the statements ‘Organic food/drink is more ethical’ and ‘Organic food/drink is over-priced’, by demographics, July 2012
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- Figure 68: Agreement with the statement ‘Organic food/drink has no benefits for me over non-organic food/drink’, by demographics, July 2012
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- Figure 69: Differences between organic and non-organic food and drink, by changes in organic food and drink purchases, July 2012
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Appendix – The Consumer – Attitudes Towards Buying Organic Food and Drink
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- Figure 70: Most popular attitudes towards buying organic food and drink, by demographics, July 2012
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- Figure 71: Next most popular attitudes towards buying organic food and drink, by demographics, July 2012
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- Figure 72: Other attitudes towards buying organic food and drink, by demographics, July 2012
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- Figure 73: Attitudes towards buying organic food and drink, by changes in organic food and drink purchases, July 2012
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Appendix – The Consumer – Attitudes Towards Organic Food and Drink
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- Figure 74: Most popular attitudes towards organic food and drink, by demographics, July 2012
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- Figure 75: Next most popular attitudes towards organic food and drink, by demographics, July 2012
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- Figure 76: Attitudes towards organic food and drink, by changes in organic food and drink purchases, July 2012
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Appendix – Target Groups
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- Figure 77: Target groups, by demographics, July 2012
- Figure 78: Differences between organic and non-organic food and drink, by target groups, July 2012
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- Figure 79: Changes in organic food and drink purchases, by target groups, July 2012
- Figure 80: Types of organic food and drink purchased, by target groups, July 2012
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- Figure 81: Attitudes towards buying organic food and drink, by target groups, July 2012
- Figure 82: Attitudes towards organic food and drink, by target groups, July 2012
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- Figure 83: Grocery shopping habits, by target groups, July 2012
- Figure 84: Attitudes towards health and healthy lifestyles, by target groups, July 2012
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