Table of Contents
Introduction and Abbreviations
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- Definitions
- Consumer research
- Definitions
- Abbreviations
Executive Summary
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- Interest in food ingredients
- Price remains an issue
- The retail market continues to grow, albeit at a slower rate
- Fragmented supply structure
- Advertising surged before tailing off
- Grocery multiples ideally placed to capture share
- The consumer
- Future growth will depend on positive perception
Market Drivers
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- Consumer concerns regarding food safety
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- Figure 1: Agreement/disagreement regarding consumer reaction to food scares, 2000-03
- GM foods
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- Figure 2: Agreement/disagreement regarding purchase of GM foods, 2000-03
- Consumer interest in the composition of food/drink products
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- Figure 3: Agreement/disagreement regarding foods containing additives, 1998-2003
- Animal welfare
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- Figure 4: Agreement and disagreement with the statement ‘I buy free-range products whenever I can’, 2000-03
- Environmental concerns
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- Figure 5: Agreement and disagreement with the statement ‘I would be prepared to pay more for environmentally friendly products’, 1998-2003
- Figure 6: Agreement/disagreement regarding concern for the environment, 1998-2003
- Organic price premiums
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- Figure 7: Agreement/disagreement with the statement ‘it’s worth paying more for organic food’, 1998-2003
- The means to an end
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- Figure 8: PDI and consumer expenditure, at constant 1998 prices, 1998-2007
- The socio-economic structure of the UK population
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- Figure 9: Trends and projections in the UK population, by socio-economic group, 1998-2007
- The consumer and premiumisation
- Buying local
- Accessibility
- The age structure of the UK population
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- Figure 10: Trends and projections in the UK population, by age group, 1998-2007
Market Size and Trends
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- Rate of growth slows
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- Figure 11: Indexed retail value sales of organic food and non-alcoholic drinks and percentage change year on year, 1998-2003
- Figure 12: UK retail value sales of organic food and non-alcoholic drink, 1998-2003
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- Figure 13: UK retail sales of organic food and non-alcoholic drink, by type and value, 2000 and 2002
Market Segmentation
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- Fruit and vegetables
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- Figure 14: UK retail sales of organic fruit and vegetables, by value, 1998-2003
- Figure 15: UK retail sales of organic fruit and vegetables, by type and value, 2000 and 2002
- Dairy products
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- Figure 16: UK retail sales of organic dairy products, by value, 1998-2003
- Figure 17: UK retail sales of organic dairy products, by type and value, 2000 and 2002
- Organic prepared foods
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- Figure 18: UK retail sales of organic prepared foods, by value, 1998-2003
- Meat and poultry
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- Figure 19: UK retail sales of organic meat and poultry, by value, 1998-2003
- Figure 20: UK retail sales of organic meat and poultry, by type and value, 2000 and 2002
- Organic breads and cereals
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- Figure 21: UK retail sales of organic breads and cereals, by value, 1998-2003
- Baby food and infant formula
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- Figure 22: UK retail sales of organic baby food and infant formula, by value, 1998-2003
- Eggs
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- Figure 23: UK retail sales of organic eggs, by value, 1998-2003
- Non-alcoholic drinks
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- Figure 24: UK retail sales of organic non-alcoholic drinks, by value, 1998-2003
The Supply Structure
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- Home production and imports
- Companies and brands
- Fruit, vegetables and meat
- Organic Farm Foods
- Duchy Originals
- Congelow Produce
- Eastbrook Farm
- Graig Farm Organics
- Higher Hacknell Farm
- Organic Livestock Marketing Co-operative
- Riverford Organic Vegetables
- Sheepdrove
- Swaddles Green Farm
- Others
- Dairy products and eggs
- Arla Foods
- Horizon Organic
- The Organic Milk Suppliers Co-operative Ltd
- September Organic Dairy
- Yeo Valley Organic Company
- Others
- Eggs
- Groceries
- Baxters
- British Bakeries
- Cauldron Foods
- Crazy Jack
- Green & Black’s
- Heinz
- Kallo Foods
- Meridian Foods
- Pedigree Masterfoods – Seeds of Change
- Simply Organic
- Unilever Bestfoods UK
- Others
- Baby food and infant formula
- Hipp
- Heinz
- Baby Organix
- Nutricia
- Kallo
- Others
- Truuuly Scrumptious Organic Baby Food
- Bread and cereals
- Doves Farm
- Harvestime
- Jordans
- Sunnyvale
- Shipton Mill
- The Village Bakery
- Others
- Chilled and frozen foods/prepared meals
- Green Circle Organics
- Goodlife
- Joubère Chilled Foods
- Miniscoff
- Others
- Non-alcoholic beverages
- Tea
- Coffee
- Hot chocolate
- Other soft drinks
New Product Trends
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- Examples of new product launches
- October
- September
- August
- July
- June
- May
Advertising and Promotion
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- Above the line
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- Figure 25: Main monitored media advertising expenditure on organic foods and soft drinks ranges, 1998-2003
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- Figure 26: Main monitored media advertising expenditure on organic food ranges, by selected high-spending suppliers (in 2002), 2000-02
- Press is the favoured media channel
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- Figure 27: Main monitored media advertising expenditure on organic food ranges, by type of media, 1998-2002
- Below the line
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- Figure 28: Examples of below-the-line promotion of organic food and non-alcoholic drinks, October 2003
- UK Organic Week
Distribution
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- Figure 29: UK retail sales of organic food, by outlet and value, 2000 and 2002
- Multiples
- Asda
- Co-op
- Tesco
- Sainsbury’s
- Waitrose
- Marks & Spencer
- Safeway
- Specialist retailers
- Fresh & Wild
- Petty Wood
- Planet Organic
- Direct sales and box schemes
- E-tailing
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The Consumer
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- Attitudes towards organic food in GB
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- Figure 30: Attitudes towards organic foods in GB, by food product, 2002
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- Figure 31: Product usage, by all adults, main shoppers and lifestyle statements, 2002
- Spotting opportunities
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- Figure 32: Usage of food products, by attitudes towards organic food and food safety, 2002
- Attitudes towards organic food by product
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- Figure 33: Attitudes towards organic food and food safety, by usage of ready meals, 2002
- Figure 34: Attitudes towards organic food and food safety, by usage of pizzas (excluding takeaway). 2002
- Figure 35: Attitudes towards organic food and food safety, by usage of frozen vegetables (excluding potatoes), 2002
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- Figure 36: Attitudes towards organic food and food safety, by usage of frozen chips and potato products, 2002
- Figure 37: Attitudes towards organic food and food safety, by consumption of cheese in blocks, 2002
- Figure 38: Attitudes towards organic food and food safety, by consumption of speciality cheeses, 2002
- Figure 39: Attitudes towards organic food and food safety, by consumption of butter, 2002
- Figure 40: Attitudes towards organic food and food safety, by consumption of margarine, 2002
- Figure 41: Attitudes towards organic food and food safety, by consumption of low-fat spreads, 2002
- Figure 42: Attitudes towards organic food and food safety, by consumption of breakfast cereals, 2002
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- Figure 43: Attitudes towards organic food and food safety, by consumption of yogurt, 2002
- Figure 44: Attitudes towards organic food and food safety, by consumpton of colas, 2002
- Figure 45: Attitudes towards organic food and food safety, by consumption of fizzy drinks, 2002
- Figure 46: Attitudes towards organic food and food safety, by consumption of fruit and vegetable juice, 2002
- Figure 47: Attitudes towards organic food and food safety, by consumption of bottled mineral water, 2002
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- Figure 48: Attitudes towards organic foods, by lifestyle statements, 2002
- Organic fruit grows in popularity
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- Figure 49: Organic food and drink purchased in the last 12 months, August 2001 and July 2003
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- Figure 50: Purchase of popular organic food and drink in the last 12 months, by gender, age and socio-economic group, July 2003
- Figure 51: Purchase of popular organic food and drink in the last 12 months, by lifestage, presence of children and Mintel’s Special Groups, July 2003
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- Figure 52: Purchase of popular organic food and drink in the last 12 months, by marital status, working status and household size, July 2003
- Figure 53: Purchase of popular organic food and drink in the last 12 months, by region and ACORN categories, July 2003
- Figure 54: Purchase of popular organic foods and drink in the last 12 months, by media usage and hours per day spent watching commercial TV, July 2003
- Consumers aged 35-44: important buyers
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- Figure 55: Purchasing of other popular organic food and drink in the last 12 months, by gender, age and socio-economic group, July 2003
- Figure 56: Purchasing of other popular organic food and drink in the last 12 months, by lifestage, presence of children and Mintel’s Special Groups, July 2003
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- Figure 57: Purchasing of other popular organic food and drink in the last 12 months, by marital status, working status and household size, July 2003
- Figure 58: Purchasing of other popular organic food and drink in the last 12 months, by region and ACORN categories, July 2003
- Figure 59: Purchasing of other popular organic food and drink in the last 12 months, by media usage and hours per day spent watching commercial TV, July 2003
Consumer Attitudes and Typologies
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- Figure 60: Attitudes towards buying organic food and drink, September 1999, August 2001 and July 2003
- Knowledgeable ABs or simply with the available means to purchase?
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- Figure 61: Positive statements regarding organic food and drink, by gender, age and socio-economic group, July 2003
- Figure 62: Positive statements regarding organic food and drink, by lifestage, presence of children and Mintel’s Special Groups, July 2003
- Figure 63: Positive statements regarding organic food and drink, by marital status, working status and household size, July 2003
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- Figure 64: Positive statements regarding organic food and drink, by region and ACORN categories, July 2003
- Figure 65: Positive statements regarding organic food and drink, by media usage and hours per day spent watching commercial TV, July 2003
- Price is a major obstacle
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- Figure 66: Potential purchasers of organic food and drink, by gender, age and socio-economic group, July 2003
- Figure 67: Potential purchasers of organic food and drink, by lifestage, presence of children and Mintel’s Special Groups, July 2003
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- Figure 68: Potential purchasers of organic food and drink, by marital status, working status and household size, July 2003
- Figure 69: Potential purchasers of organic food and drink, by region and ACORN categories, July 2003
- Figure 70: Potential purchasers of organic food and drink, by media usage and hours per day spent watching commercial TV, July 2003
- Some doubt evident regarding organic credentials
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- Figure 71: Negative statements regarding organic food and drink, by gender, age and socio-economic group, July 2003
- Figure 72: Negative statements regarding organic food and drink, by lifestage, presence of children and Mintel’s Special Groups, July 2003
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- Figure 73: Negative statements regarding organic food and drink, by marital status, working status and household size, July 2003
- Figure 74: Negative statements regarding organic food and drink, by region and ACORN categories, July 2003
- Figure 75: Negative statements regarding organic food and drink, by media usage and hours per day spent watching commercial TV, July 2003
- Consumer typologies
- The Uninterested (50% of respondents)
- Price Deterred (13% of respondents)
- Organophiles (14% of respondents)
- Sceptics (24% of respondents)
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- Figure 76: Consumer typologies, by gender, age and socio-economic group, July 2003
- Figure 77: Consumer typologies, by lifestage, presence of children and Mintel’s Special Groups, July 2003
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- Figure 78: Consumer typologies, by marital status, working status and household size, July 2003
- Figure 79: Consumer typologies, by region and ACORN categories, July 2003
- Figure 80: Consumer typologies, by media usage and hours per day spent watching commercial TV, July 2003
- Consumer typologies and the number of organic products bought
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- Figure 81: Consumer typologies and the number of organic products bought, July 2003
- Cross-promotion possibilities
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- Figure 82: Products with similar buyers, July 2003
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The Future
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- Educating the consumer…
- ...and effective communication are key
- The importance of product innovation
- Retailers could do more
- Local sourcing and premiumisation
Forecast
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- Entering the mainstream phase
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- Figure 83: Forecast of UK retail sales of organic food and non-alcoholic drink, 2003-07
- Market to grow by another half
- Time to expand consumer base
- Price deterred a good target
- Factors used in the forecast
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