Organic momentum renewed
Organic is undoubtedly part of the ‘natural’ trend that encompasses related themes such as local and authentic, transparency and provenance.
After the 2008 economic downturn, however, organic growth faltered along with other premium and functional concepts.
Today, organic seems back on the front foot.
• UK organic food and drink purchases rose 6% in 2017, compared with 2% growth for non-organic products.
• This took sales to their highest ever level of £2,200 million in 2017, breaking the 2008 record of £2,100 million.
• Dairy products accounted for the biggest share of 29%. Chilled and delicatessen products achieved the biggest increase of 21%.
• Just 3 chains – Sainsbury’s, Tesco and Waitrose – were responsible for 70% of all supermarket trade.
It is no coincidence that Arla Foods has stepped up its focus on the organic opportunity with its purchase of Yeo Valley Dairies.
• According to Nielsen research, organic milk has reached 29% of fresh milk sales in Denmark, with a share of 16% in Sweden and 10% in Germany, but only 4% in the United Kingdom.
• Arla’s Organic Free Range milk is reported to have driven 60% of all UK organic milk growth in the past year.