France’s Humble Boom
Posted - July 23, 2009
France’s Humble Boom
By John Coghlan
The next time you nestle into your chair at a Paris bistro and order a wine from Provence, you may be ordering organic. France’s organic market may be small, but, recession aside, growing fast. Sales of organic food jumped 25% last year and more than 60% in the past three years to reach 2.6 billion Euros. Agence Bio, France’s organic association said that sales would probably continue to grow as the public wanted to avoid pesticides in food and genetically modified foods.
Today, organic products in France are offered in all distribution and consumption channels. Already 36% of cafeterias offer at least one organic serving on their menu. In total food sales, organics still have a humble market, jumping from 1.1% of market share in 2007 to 1.7% in 2008. But the organic sector is still growing. Since 1999 organic farmers have almost tripled area allotted to growing organic produce to 580,000 hectares. And market share will continue to grow: 74% of those who had bought organic food said that they would maintain or increase their purchases over the next six months. In a recession, growing markets are something to watch. Agence Bio’s head, Elizabeth Mercier stated that organic products so far appeared resistant to the recession with sales continuing to increase.
One lesson for organic producers and retailers: keep prices modest. In a recent survey, 57% of French polled said that they compare organic and non-organic prices. Only 47% said so in 2006. As well, growth rates are down in all major organic food markets, such as the United States and Germany. The same is proving true for France.
To further build the organic sector, Agence Bio ,in cooperation with other organizations, launched in 2008 a two year national consumer communication campaign. Events that highlight the benefits of organic farming have been scheduled at major stores and fairs. And to increase organic production another initiative is courting grain farmers. Leading organics are the fruit and vegetable, wine and livestock sectors. In the south, Languedoc Rousillon’s organic vineyard area is increasing 36% a year, followed by Provence-Alpes-Côtes-d’Azure, with a 26% yearly growth in organic vineyard area. Last year, 5.6% of France`s fruit cultivation had become organic. Of note too, farmers are planting aromatic organic crops for the perfume industry – above all, lavender, and medicinal herbs for sales in health products. And despite humble cultivated area, in the past year, these crops registered a 25% increase. But the greatest jump in organic production has been the 40% increase in organic olive production. So at the Paris Bistro, even the olive in your Martini may soon be organic.
Dedicated consumers drive organic sales in the UK
Posted - June 10, 2009
Dedicated consumers drive organic sales in the UK
By Adrian Larose - From the Soil Association Organic Market Report 2009
Crashing stock markets and nose-diving banks are not news to anyone in the United Kingdom these days. A slow recovery may be beginning, but many shoppers find themselves a long way – mostly downwards! – from the heady, no-holds-barred purchasing power of the years preceding 2008.
The Greater London Authority, a governing body for the UK capital, estimates London’s overall economic growth rate will decrease by almost 3percent in 2009 and remain negative in 2010. Employment levels in the city are set to decrease through the end of 2011.
Yet amidst all this, sales of organic products still grew by about 2 percent during 2008, says the 2009 Organic Market Report recently-released by the Soil Association, the UK’s most respected authority in sustainable agriculture and organic production.. The report uses polling data supplied by the Market Tools and Omnibus firms.
Receding incomes have led some UK consumers to cut back on organic consumption recently, with the BBC reporting more than 10% declines in organic sales for March and April 2009.
Core organic consumers, though – 15 percent of the people who purchase many organic products regularly, rather than the occasional organic “luxury” item – plan to stay committed to organics in the recession, stating they will cut back on holidays and other leisure activities to afford the organic premiums. The polls say that 36 percent of consumers who spend more than 40 percent of their household budget in organic food and beverages plan to increase that spending, while only 15 per cent expect to cut back on these purchases.
Meanwhile, more consumers are buying at least a little bit of organics. Fully 90% of surveyed homes reported buying some organic products, compared to a touch more than 75% in 2004.
Personal care and cosmetics enjoy relative strength versus produce and meat, the Soil Association report suggests. Recession-wary shoppers in this strong category “trade down,” choosing cheaper, multi-purpose personal care products, still in organic quality, rather than more expensive, specialized products.
Organic dairy sales, which grew about 11 per cent in 2008, are falling, though dairy remains an entry point to attract new organic consumers.
UK organic pork has become a victim of its own success, according to the Soil Association report. Growing demand saw its production double from 2006 through 2008 – causing organic feed prices to shoot through the roof. That pushed prices too high for most tastes. Organic pork production is estimated to fall by 40% through 2009.
In the fields, UK vegetable growers have experienced poor seasons lately, with cool, damp summers. Demand for certain traditional local crops is growing, with produce such as broad beans, spring greens and fresh herbs in high demand, the report notes.
Overall, the UK’s organic farmers continue to enjoy higher profits versus conventional. The Organic Market Report notes that the price gap between organic and conventional products in most categories continues to narrow due to high fossil fuel prices, making organics seem more affordable to the consumer (and profitable to the farmer). High fuel prices hurt conventional products more, due to petroleum ingredients in chemical fertilizers and other conventional food production requirements.
Local producers may be set to climb to the top of organic production, due to increased long-distance transportation costs and piqued interest from consumers. Poor exchange rates with the Euro, meanwhile, have driven UK consumers away from imports.
As with any category, improved availability and branding remain central ways to increase exposure of organic products. Interesting to note that more than 25 percent of consumers surveyed stated they might buy more organic products if more were available locally, or if they were offered by their favorite conventional brands.
“It is clear from this report that much more work needs to be done to communicate the wider benefits of organic production to the public, especially in relation to health, animal welfare, climate change and the environment, writes ”Peter Melchett, policy director at the Soil Association. “Those (consumers) with a sophisticated understanding of all the benefits are the ones most likely to become or remain committed buyers – they know too much to turn back”.
The Organic Trade Association releases its 2009 Organic Industry Survey
Posted - May 19, 2009
The Organic Trade Association releases its 2009 Organic Industry Survey
By O.W.N. News Network
The recently released “2009 Organic Industry Survey” commissioned by The Organic Trade Association shows that in 2008 organic sales in the United States reached $24.6 billion in sales. Organic food is the largest segment of organic products, totalling $22.9 billion in sales and accounting for 93% of all organic product sales. In spite of the economic recession, the growth rate for food and non-food organic products combined was 17.1% between 2007 and 2008, the report says.
The growth rate for organic food products in 2008 over 2007 was 15.8%. Organic food now accounts for 3.47% of all food products sold in the U.S. The non-food category includes personal care products, nutritional supplements, fibres, clothing, household cleaners, flowers, and pet food.
Data for the study was collected from 200 companies earlier this year, that provided their sales information for 2007 and estimated sales for 2008. Government data and financial reports from public companies were also used to develop the final estimates.
Some of the findings found in the report were:
• Market penetration of organic products has nearly doubled in the past five years. In 2008 organic sales represented nearly 3.5% of the total food sales in the U.S. (A small share but growing at a much faster rate (15.8%) than conventional food sales (4.9%).
• Fruits and vegetables account for 37% of total organic food sales last year, followed by beverages and dairy, each representing just over 14%.
• Breads and grains showed the strongest growth in 2008 (35% over 2007) followed by beverages (32%).
• National natural and mass-market food chains are the leading channels of distribution for organic foods, each accounting for about one third of sales. Regional natural food chains and independent health food stores have a smaller market share of about 10%.
• U.S. sales of non-food organic reached $1.6 billion in 2008. The largest categories of organic non-food products are supplements, fibres (linen and clothing) and personal care products.
• Sales of non-food organic products are growing faster than sales of organic food. At the same time, the scope of non-food products is changing as new product categories and products are introduced to the U.S. market.
• With respect to organic labelling, half of the producers display the USDA logo in their products, a proportion that rises to 83% for companies with organic sales of $5 million or more.
• Among companies that currently do not display the seal, 20% reported they planned to do so in the next three years.
• An important issue for the industry is the lack of a dependable supply of organic materials. Forty-one percent of producers, large and small, say that undependable supplies of organic raw materials limit their ability to generate sales. Undependable supplies of organic grains are mentioned most often. Lack of organic sugar is an issue for 11% of companies that manufacture organic food.
• Sales under private label account for just over 30% of total sales of organic products.
• Companies with over $5 million US dollars in annual revenue are twice as likely to be involved in exports as firms with less than $500,000 US dollars. However, many smaller firms want to enter the export arena.
• Companies rely heavily on international trade shows for export business development. At the same time, they cite regulations imposed by other countries as the principal barrier to export activity and growth.
Seven reasons to include China in your organic market expansion
Posted - May 3, 2009
Seven reasons why China is worth exploring
By Robert Bell
China is one of the most exciting emerging organic markets in the world. Its rapid population growth, rising affluence and unique market conditions present opportunities for foreign companies to develop their own “China strategy.” Here are the most compelling reasons for considering the Chinese market, according to industry insiders, field visits and market figures.
1) Double digit market growth
Although the organic market in China represents only 1.2 per cent of the total domestic food market, it is growing rapidly by 30 to 50 per cent each year, with an estimated $750 million US in sales 2006.
China has one of the largest areas under organic management, along with Argentina, Brazil, India and Uruguay. While overall consumption is still relatively low, China is poised to become the fourth largest consumer, after the United States, Germany and Japan. An estimated 1.6 million hectares of farmland are under organic cultivation, with production mainly for exports. In 2006, over $350 million U.S. worth of food products were produced according to the organic standards of the US, Japan and Europe. Over one-third of the organic soybeans used by European food processors come from China. Many producers are expanding into animal products for export, including meat, milk, fish and eggs.
2) Food safety scandals and increased consumer awareness
Increased demand for organic foods in China has been mainly driven by recent food scares and raising consumer awareness for health and food safety issues.
Rising urban incomes and the emergence of an affluent middle class and expats looking for quality goods are other key factors driving domestic demand for organic products. Consumers are also looking for imported brands that may provide safe and healthier alternatives.
Leading retail chains in affluent cities like Beijing and Shanghai have been introducing organics. Foreign retailers with a presence in China such as JUSCO, Carrefour, Metro and Wal-Mart are all offering organic products. They must import most of their organic lines from overseas to meet domestic demand. A growing number of specialized shops is selling not only fresh organic certified fruits and vegetables, tea, rice and honey, but also some imported processed foods.
According to the Organic Food Development Center (OFDC), total sales of organic products in China reached $500 million in 2007.
3) Changing lifestyles
Consumers want more options and products and more exposure to other cultures, with an increased number of international events taking part in China (the Olympics 2009, the World Expo 1010).Many are adopting western lifestyles, such as drinking coffee and wine.
China has also witnessed a rise of LOHAS consumers (acronym for Lifestyles of Health and Sustainability). The trend Nong Jia Le, or “Vacation in the Countryside” has urged City dwellers to visit the countryside on weekends and short holidays. Touring local farms, harvesting fruits and vegetables and enjoying an organic meal have become popular “Nong Jia Le” events.
Media campaigns to increase awareness on environmental and sustainability issues have contributed to changes in attitudes and behaviour. As of June 1st 2008, free plastic bags were banned in retail stores, shopping malls and wet markets. More consumers are now bringing their own bags when shopping and retailers are offering environmentally friendly bags instead.
4) Limited domestic processing
In spite of increased demand, Chinese consumers currently still have few choices for organic food. The local organic food market is currently underserved by domestic production. Very little organic meat is available, and there is not enough organic sugar, a key ingredient in processing and canning. Not enough organic palm oil and flour are available to develop the market for added-value foods. There are not enough organic certified Chinese processors. Those in business must import these and other key ingredients from international sources. It is estimated that 90% of the total sales of organic food products come from produce, while 5% comes from domestically processed foods and the other 5% come from imported products. Processed organic food or value-added organic foods are not often found in big-box retailers yet. Milk, grains, fruit spreads and juices, vegetables and poultry are the most popular products.
Foreign brands are seen as safer than domestic brands. One area of rapid expansion is baby food and milk. After the San Lu milk scandal, sales of imported brands of milk and powdered milk increased 60 per cent despite being on average 3 to 5 times more expensive. Australia is the region’s leading supplier of organic milk. With the one child per family rule, Chinese parents are willing to pay a premium for high-quality foods for their offspring .
And in China’s high-end and foreign dining service industry, raw ingredients are often imported because of domestic options do not meet their quality expectations. In 2008, Australian exporters of lamb and beef sought export opportunities in Shanghai.
5) Government support of organics
In 2005, the Chinese government established a national standard for organic foods consistent with international standards. This included special packaging and labeling on retail packaging, allowing consumers to clearly identify organic food. Many provinces and municipalities have also reduced costs for certification under the national standard to encourage producers and processors in the Chinese market.
The Chinese government has set internal goals for each province for increasing their production of organic food by 5 to 10 times by 2010-2015. These internal goals include tea, grains and vegetables, some of the most popular Chinese organic export products. A 2006 USDA report estimates that by 2010, as much as one-third of the total agricultural land in production will be producing organic food.
6) Trade shows as gateway to the market
Trade fairs offer a cost effective opportunity to introduce and promote new-to market organic products and imported organic products are no exception. In China, there are three events for promotion of organic products: Organic & Natural Products China, ONP-CHINA, the Organic China Expo, OCEX and Biofach China. This sister event of Biofach in Germany, the most international organics fair, is enjoying a steady increase in both local and foreign exhibitors and trade visitors, and has established itself as the main fair in the sector.
7) Opportunity to cooperation and joint ventures
Chinese producers are typically smaller companies or farmers that are looking for foreign expertise to develop and expand their operations. Expertise in organic processing and packaging to foreign standards is in particularly high demand. Producers, processors and retailers in the Chinese market are looking to develop better inspection capabilities for their supply chain to ensure consumer safety. Many producers and processors are also looking to partner with foreign companies to export overseas.
An increasing number of expats, plus a groundswell of international events such as last year’s Olympics and the upcoming World Expo, mean better global exposure and add to the appeal of China. The vast opportunities for growth in this vast country makes it one of the most important emerging organic markets in the world today.
Organic in the Personal Care Aisle
Posted - January 12, 2009
A Pretty Controversy
By Adrian Larose
A new European “organic” cosmetics standard has reignited debate over what it should take to be labeled organic in the personal care aisle, and who should be involved in making those decisions. The Cosmos (Cosmetic Organic) Standard is being developed by seven major European organizations, including EcoCert, BDIH and the Soil Association.
Certifiers, manufacturers, and industry organizations have all come under fire regarding how similar or different from organic food regulations organic personal care (including cosmetics and hygiene) products should be. Some argue what consumers put on their skin and give their children should be as healthy and natural as anything they eat, while others argue the non-organic – for now – necessity of certain large-scale chemical processes and ingredients.
Consumers already face a formidable array of various certified organic, made with organic, and natural claims as they purchase healthier ways to care for themselves. Between big names like the Soil Association and EcoCert, industry alliances such as Cosmos (in Europe) and Oasis (in North America), and various “natural” standards, there is no one acknowledged central player.
The USDA’s NOP food standard could be applied to personal care, perhaps with minor changes, many in the industry have suggested. “My company, Organic Essence, only makes USDA 95% to 100%- certified organic,” said Ellery West, president of Organic Essence. “Many large, established concerns claim that most body care products cannot be made to USDA made with standards, not to mention certified organic standards. They are wrong.”
“They have a tremendous investment in their current business models, and their branding strategies are well set,” West argues. “It is much more cost-effective to make your brand look natural, and advertise it as such, then to actually make a genuine organic product.” Her firm has just created biodegradable packaging for its lip balm and shea butters, green products in many senses of the word.
Not all standards are created equal. The Organic Consumers Association, a US consumer advocates group, gave the US NOP food standard 5 stars (when applied to bodycare), the Oasis US industry-led standard 0.5 stars, the Soil Association 3, US NSF standard 3.5, “natural” standard Natrue 0.5, and EcoCert zero.
“Consumers automatically assume that the entire product is organic and that the product itself is certified organic,” Michelle Thomas, owner of US wholesale distributor KISO Organics, said of organic labelling in personal care. “This is very rarely the case.” While a USDA NOP product (whether food or personal care) must have 95% organic ingredients and meet other requirements to feature an organic label, and at least 70% organic ingredients to have a made with organic label, standards such as Cosmos could allow firms to apply “organic” labels with organic content of as low as 20%.
Labels that use large-print, simple “organic” wording without being clear about the percentages are one hot-button issue. Being the big name star, EcoCert is pointed at as not being clear with consumers about what the word “organic” means on its diverse labels; just to look at the list of approved raw materials on its website requires a password given only to organizations that register with EcoCert.
“Personally, I will only use products that are certified organic to food grade standards,” said Thomas. Others argue such standards eliminate too many reasonable options.
Supply-chain issues do exist, West said. For instance, David Bronner of Dr. Bronner’s Magic Soaps, generally very supportive of stringent, food-safe standards, highlighted a complex manufacturing process that turns oils into key cosmetic ingredients. “The operations that do this are very capital-intensive, huge-volume operations, and impossible to get a small dedicated batch run with certified organic oil exclusively within any reasonable cost-efficiency structure,” he said, his firm having researched the topic. Organic operations do not yet consume enough of the end ingredient, he suggested, to finance an organic run-through in such a processing plant.
Still, allowing these difficult ingredients to “sunset” by permitting use for several years until the organic supply chain improves is not frank with consumers, West said. “Though well meaning, these new standards will not give health conscious consumers what they want other than confusion as to what ‘organic’ really means.”
Even water is a problem. Standards approach it differently. The USDA NOP considers it neutral – neither organic nor non-organic. If a product is, say, 70% water (as plenty of personal care items are), only the remaining 30% is considered. “Organic consumers know that the non-organic content cannot be more than 5% by non-water product weight,” Bronner said of certified organic NOP personal care.
The Cosmos standard requires 20% organic content. It counts water as non-organic, seemingly justifying this low percentage. Yet, Bonner said, “there is no implicit and accurate disclosure of non-organic non-water content” – which might constitute up to 80% of the product.
Large organizations are already taking sides. Cosmos members account for more than 1,000 certified companies and 11,000 products in about 40 countries. Firms like Clorox, a large US conventional firm, are buying up “natural” consumer-oriented companies such as Burt’s Bees, a purchase Clorox made in 2008.
Some small entrepreneurs see their own position as an advantage, though. “Small, nimble firms can innovate circles around the established behemoths. Size and scale can get in the way of innovation,” West said. Little firms have the flexibility to create genuinely organic product and standards.
And innovation is just what is needed to help gradually develop a uniform, accepted standard as to what “organic” will mean when a consumer wanders out of the produce section and into the personal care aisle.
Organics Advance in China
Posted - November 1, 2008
China’s New Sophisticates
By Adrian Larose - as printed in O.W.N. Fall 2008
Demand for certified organic products is growing in China, with three organics trade fairs taking place annually, an associated year-round exhibition centre in Beijing and an increase in both interest in and research on domestic organics consumption.
Of course, China’s organic trade channels remain limited, compared to well-developed Western markets. Yet, according to the World of Organic Agriculture 2007, China ranked third in area of organic land under cultivation, after only Australia and Argentina. This area farmed organically in China has been growing at astonishing rates – 20 to 30% per year, according to the final report from the BioFach China fair.
Amongst Chinese consumers in Beijing, meanwhile, more than 65% currently buy some organic foods, according to Ipsos Marketing research commissioned by the environmental NGO Greenpeace. Over 80% of survey respondents indicated they planned to buy organic foods at some point in the future. A major reason listed for choosing organic was concerns about health and safety.
A new 500 square-metre exhibition centre in Beijing is aimed both at those consumers, and at the organic businesspeople who are quickly increasing in number throughout China. The Organic Life Experience Center is organized by the same team as the Organic China Expo (OCEX), with the national Chinese government’s financial support. It offers year-round display and purchase of organic goods that are sold in the country.
Among the many brands now on display there are Green dot dot, the Beidahuang Group, Bolongbao organic wine, Lowcarbs organic, COFCO, Hona Organic, Qingpuyuan Vegetables, Beijing Well Full Food, Joyful Organic and products from as far as Mexico and Colombia as well as from German natural cosmetics firm Weleda.
“The Organic Life Experience Center in Beijing aims to provide a platform to build new business contacts for enterprises, promote an ecological lifestyle to consumers and stimulate the development of China’s organic food industry,” says Gao Chayao, of OCEX . “It holds lectures on health and organic food and cooking methods to promote awareness of organic agriculture.”
Besides providing year-round display spaces for the organic products, the Center also offers trade facilitation services, including market data analysis, and an experience center that holds these public events and product tastings. “The experience center allows visitors to taste delicious foods made of organic ingredients and healthy and nutritious diet alternatives,” says Gao. There is also a shop where goods on display can be purchased. All goods in the centre are certified organic.
The OCEX fair itself takes place in Beijing, this year from Nov. 27-29, 2008. Yet OCEX is not alone. The Organic & Natural Products fair in Shanghai has been established for a couple of years and big business has truly “come to town” with BioFach China now being held annually in Shanghai
This addition to the global BioFach fair network is heading for its third edition May 29-31, 2008. Compared to the two Chinese fairs, BioFach has had special success in attracting foreign firms that are eager to start harnessing the potential to export to China’s enormous population – as well, of course, attracting the expected qualified Chinese firms, eager to develop their own foreign export connections.
At BioFach China 2008, 242 exhibitors presented to more than 9,000 trade visitors, the latter a growth of almost 25% over the 2007 premiere edition. Amongst exhibitors, the international category had the strongest growth. The 2007 premiere had almost no foreign exhibitors, but 24 foreign firms graced the halls in 2008. This number will no doubt grow over coming years as confidence in the Chinese market’s potential and systems increases.
Other fairs that dot the region include Natural Products Expo Asia, held in Hong Kong, by the same organizer as major US fairs Natural Products Expo East and West; and Asia Organic & Lohas Expo, in Taiwan.
For visitors and locals alike, the organic lifestyle is steadily becoming an easier one to follow within China. The China Environment and Sustainable Development Reference and Research Centre has produced organic shopping guides listing stores for several Chinese cities in recent years, while Greenpeace just released The 2008 Beijing Organic Guide. It lists more than 60 shops, some of which are franchises, as well as restaurants and even farms.
Exactly who will be visiting these suppliers is becoming clearer. A visitors’ survey conducted by OCEX found that they are generally middle-aged, well-educated and live in a family setting. Only one third of those surveyed correctly identified China’s organic seal, and many named high prices as one major reason against buying organic.
Some of this goes with Greenpeace’s survey findings. “On one hand, a survey commissioned by Greenpeace China in January 2008 shows that nearly 80% of Beijing consumers are willing to buy organic food,” says Wu Haiyan, with Greenpeace China. “On the other hand, Greenpeace is concerned over the effect of chemical-intensive and GMO-intensive agriculture has on the environment and human health.” More than 90% of the Greenpeace survey respondents listed safety and health as reasons to buy organic, something they have in common with health-conscious shoppers in more developed organic markets worldwide.
It’s encouraging, if not surprising, to see the organic market begin to develop in China for the same reasons as it has in so many other countries. Perhaps in domestic organics, as in many other things, the Chinese will quickly catch us all up!
Labels, Tests and Education
Posted - November 1, 2008
Dangers of Playing Hide and Seek with Product Labels
O.W.N. News Network – as printed in O.W.N. Fall 2008
In her new book Holler for Your Health: Be the Key to a Healthy Family, author Theresa Holler addresses three problems that haunt the food and household product market: poor labelling, lack of proper testing and lack of education. Frequently, labels omit toxins, and the consumer receives scant information about them. Other products containing toxins can go onto the shelf without proper testing, turning consumers into guinea pigs.
This well referenced text grounded in science, offers tips on simple ways consumers may protect their family’s health from deadly commonplace toxins.
Holler warns against products with hidden chemicals, which can harm children and adults, and lead to sickness, fatigue and obesity. But because of lax labelling regulations and trade secrets, the uninformed consumer cannot choose between good products and toxic ones.
Holler has a Bachelors degree in Biology, holds a Masters Degree in Primary Care Medicine and has completed Doctoral coursework in Medical Writing and Environmental Health. She is director of education for Project Wellness in Roanoke, VA and a public speaker. Holler for Your Health is available online at Amazon and from her website www.holler4health.com.
A portion of proceeds are donated to children who are dying alone in US hospitals.
OTA Receives USDA Foreign Agricultural Service Funding
Posted - October 15, 2008
$750,000 over 3 years to Analyze Barriers to US Organic Exports
The United States Department of Agriculture’s Foreign Agricultural Service has approved $750,000 in funding over 3 years to the Organic Trade Association in partnership with Sustainable Strategies for projects that analyze technical barriers for the export of US organic products.
“This funding will go a long way towards understanding the hurdles that impede the trade of organic products and finding solutions to opening trade options for US organic producers,” said David Gagnon, OTA’s Chief Operating Officer and OTA leader on US organic export projects.
OTA member Sustainable Strategies: Advisors in Food and Agriculture will conduct comparative GAP analyses and overviews of international markets. (Comparative GAP analyses are detailed, side-by-side comparisons of US organic standards with the standards of other countries.) Each analysis will identify barriers to exporting US organic products to specific markets.
In their project proposal to the USDA, the partners emphasized that US organic producers are disadvantaged because while various foreign nations, certifiers and producers enjoy full access to the US market, US organic producers have no reciprocal access – an inherently uneven playing field.
“As organic production and trade expand around the world, requests from countries for recognition and equivalence of standards grow, as does the need to compare standards,” said Kelly Strzelecki, agricultural economist with the Processed Products and Technical Regulations Division in the USDA’s Foreign Agricultural Service. OTA’s previous work on trade policy and side-by-side comparisons of organic standards has provided the USDA with vital information, she said.
The Organic Trade Association (OTA) is the membership-based business association for organic agriculture and products in North America.
Natural and Organic Consumer Trends
Posted - September 19, 2008
New Data on US & EU Natural & Organic Consumers
Total consumer spending on natural personal care, including narrow, broad and organic definitions, currently stands at almost US$14 billion in the US and Europe, and by 2011 is set to reach more than US$20 billion. The US is the largest market at US$7.7 billion currently.
About one in three European and US consumers sought cosmetic and toiletry products that have natural credentials on a more frequent basis in 2005-06. Some consumers across Europe and the US are now also avoiding certain personal care products more, due to fears over ingredients.
While the consumer profile of who makes up the natural –seeking segment varies from country to country, there are some similarities. These consumers tend to be middle-aged, middle-income females who are well educated. New and expectant parents are expected to drive future usage.
A report that explores the key trends driving the boom in natural personal care consumption in the US, Europe and Asia-Pacific, including the above data, is available from Research and Markets. The quantitative data cover three classifications of natural personal care products: broad, narrow and organic. Extensive primary research of consumers and senior industry figures was used to uncover the latest thinking and reveal emerging opportunities.
For more, visit http://www.researchandmarkets.com/product/8fd2b8/natural_personal_care_consumers_unlocking
Billion Dollar Boom
Posted - September 11, 2008
Organic and Natural Markets Expanding Rapidly
America’s shopping habits are experiencing a sea change when it comes to natural and organic products. These are now available in most every retail outlet, meaning consumers can easily purchase alternatives.
The new report (issue two) titled Natural and Organic Food and Beverage Trends in the U.S., by market research firm Packaged Facts, investigates the trends and demographics behind this solid growth. The report features material not in the first edition, including in-depth consumer analysis from both Simmons NCS and BIGresearch and case studies examining brand performance, sales data, and trends in nine key product categories.
The natural and organic markets continue to gain strength in food, drug, and mass outlets alike. Stores such as Whole Foods and Trader Joe’s have now brought natural and organic products to mainstream Americans, leading to savvier consumers.
Packaged Facts estimates that in 2008 sales of natural and organic food and beverages will continue double-digit growth to reach $32.9 billion. For 2005-2008, Packaged Facts estimates growth of 67.6%, being a compounded annual growth rate of 18.8%.
Not even the current economic upheaval is truly impeding the market’s steady development, according to Packaged Facts prediction of strong single-digit growth through 2013.
“While natural and organic products are no longer recession proof, Americans are waking up to expect natural and organic food in their stores, food that is pesticide-free, hormone-free and non-GMO. Suppliers and retailers are quickly acting to provide it to them. We believe this consumer demand will continue to spur the strong growth for these products,” says Tatjana Meerman, Packaged Facts’ publisher.
This second issue of Natural and Organic Food and Beverage Trends in the U.S. examines the latest information on market size, projections for future growth, future trends and opportunities, consumer demographics, the retail landscape, and leading producers.
For further information visit: http://www.packagedfacts.com/Natural-Organic-Food-1119530
About Packaged Facts – Packaged Facts, a division of Market Research Group, publishes market intelligence on a wide range of consumer industries, including consumer goods and retailing, foods and beverages, demographics, pet, and financial products. Packaged Facts also offers a full range of custom research services.
