View
28
Download
0
Category
Tags:
Preview:
DESCRIPTION
In time of recession, can organic food be a reality for the majority?. Susanne Padel Institute of Biological Environmental and Rural Sciences. Outline. 10 year trends of the organic sector Who is the organic consumer? Some more recent trends of the organic market - PowerPoint PPT Presentation
Citation preview
In time of recession, can organic food be a reality for the majority?
Susanne Padel Institute of Biological
Environmental and Rural Sciences
Outline
10 year trends of the organic sector Who is the organic consumer? Some more recent trends of the
organic market Can organic food be a relality?
ww
w.f
ibl.
org
Organic agricultural land by region (2007)
Global organic market 1999-2007
97% of consumer demand in North America (43%) and Europe (54%).
Asia, Latin America and Australasia are important producers and exporters
Supply problems for fruits, vegetables, beverages, cereals, grains, seeds herbs and spices
Growth at lower rate is expected to continue
UK organic certified land area since 1997
0
100
200
300
400
500
600
700
800
thousand ha
'97 '98 '99 '00 '01 '02 '04 '05 '06 '07
NI
Scotland
Wales
England
UK Organic sector development since 1997
0
200
400
600
800
1000
1200
1400
1600
1800
2000
97 98 99 '00 '01 '02 '03 '04 '05 '06 '07
0
1000
2000
3000
4000
5000
6000Land area (thousand ha)
Retail value (£ million)
No of holdings
Organic market and sales channels
0
200
400
600
800
1000
1200
1400
1600
1800
2004 2005 2006 2007
Farmers markets
Box & mail(producer)Box & mail (retail)
Independent retail
Supermarkets
Source: KeyNote (2008)
Who are the organic consumers?
We used to think Higher social class and education
•2/3 are A,B,C1 (compared with 1/2 in population)
Fewer children and older Mainly living in London, South East,
South West and WalesBut appeal has widened Manual and casual workers, students
and pensioners now account for 50% of consumers
Why people buy organic? (% consider very important)
Quality and taste (31) No GM ingredients (26) High animal welfare standards (25) Avoiding food with pesticides (25) Avoiding artificial colours & additives (23) Wanting to know where food come from (22) Fair prices and wages for farmers &workers (20) Farming methods encouraging wildlife (20) Impact of production and transport on greenhouse
gases and climate change (14)
(Source: Market Tools/ZOmnibus for Soil Association, January 2009)
Two broad segments of consumers
Regular/committed (15%) Claim to buy more then
40% of food as organic Well educated; health
aware Range of income levels Believe in organic product
quality Seek other attributes
• Environment
• Animal welfare
• Fair trade and local
Account for > 80% of spend
Occasional (30%) and rarely (48%)
Claim to buy between 35% and 10% as organic
More price & convenience sensitive
More sceptical about some claims
Less knowledgeAccount for < 20% of spend
Knowledge and availability remains a problem
¼ of those that don’t buy regularly would like to know more.
Organic products are bought unknowingly
People believe to buy organic if in fact they are not (e.g. on farmers markets, natural)
Limited knowledge legal status of ‘organic’ and annual inspection/certification requirements
More recent trends
Market has grown by 1.7% between 2007 and 2008 (£2.1 billion)
Nine out 10 households buy organic food•increases in the last 5 years
Broader appeal Average spending has fallen
•from £51.30 to £50.55
Dairy products (29.5% of sales)
Above average growth (07-08) •+10% milk
•+11.5 cheese
•+1.5 yoghurts Now the largest sector Commitment from key
players to communication campaign
Comparatively low premiums
Fruit & veg (26.2 % of sales)
Available in supermarkets but also box schemes, local shops, farmers markets
Reductions in consumer spend during 2008
Heavy reliance on imports•Despite steady increase in
horticultural land area in the UK
Meat (<10%)
Above average growth rates • +13% for red meat and
• +17% for poultry Downturn in supermarket sales in late 2008
• Lower value cuts and products (beef burgers)
• Cheaper outlets
• Affected by grain price increases
• Animal welfare important ‘Chicken out’ campaign
Difficulties balancingQuality
Health
Taste
Animal welfare
Local food
Fair price
Wildlife
Climate change
Labelling jungle?
Expected responses to the recession...Different types of shopping
Fun
Source :Bord Bia Research – Feeling the Pinch
Shopping Habits will Change…
Fun
Source :Bord Bia Research – Feeling the Pinch
• Shoppers will first try to reduce cost of Vital essentials– Promotions, Own brand, Discounters
• And will then cut out Fun expenditure
• Reluctant to cut back on Lifestyle or Sanity purchases
– Some affordable luxuries may actually increase!
© www.igd.com/analysis© www.igd.com/analysis
MyReports
1411 1212
9 1113 118
12 11
18 18
11
24 23
1419
25
1815 15 13 15
9
18
25 27
0%5%
10%15%20%25%30%35%40%45%50%55%60%65%
...food that hasbeen produced
locally in the area Ilive
...organic food ...foods that supportFairtrade
...foods with highanimal welfare
standards
% m
ain
shop
pers
(all
men
tions
)
2003 2004 2005 2006 2007 2008 2009
Specific food purchases –environmental and ethical
I have specifically bought…
Source: IGD Consumer Unit, 2009
Summary and conclusions
Consumers have reviewed spending on premium organic foods
People continue to seek ways to make a difference
Organic market largely driven by committed regulars
Can organic food be a reality for the majority?
Availability remains a problem Expensive image, not always reality
•Checking prices
•Premiums vary between outlets More home cooking and less
convenience food and changes in diet
We need clear messages about the wider benefits of organic food
Recommended