Specialised Organic Retail ReportSpecialised Organic Retail Report Europe 2008

C di f thCompendium of the Organic Market

in 27 European CountriesCountries

Tom Vaclavik, ORA, February 20, 2009BioFach 09BioFach 09

Specialised Organic Retail Report Europe  2008ORA, June 2008, page 1

Presentation at BioFach Kongress 2009, Nürnberg Messe Convention Centre, Nuremberg, Germany, February 19-22, 2009.

Specialised Organic Retail Report Europe 2008

Supported by

World Organic Trade Fair

Specialised Organic Retail Report Europe  2008ORA, June 2008, page 2

27 Portrayed Countries

Belgium Greeceg

Bulgaria

Denmark

Finland

FranceGermany

MaltaItaly

Croatia

Great Brittain

Norway

Luxembourg

PortugalPoland

The Netherlands

SwedenSpain

AustriaRomania

SwitzerlandSpain

Slovenia

Czech RepublicSlovakiaHungary

TurkeyCyprus

Specialised Organic Retail Report Europe  2008ORA, June 2008, page 3

Annual amount spent on organic food per person (<€ 25)person (<€ 25)

HungaryCyprusPoland

Czech RepublicGreeceS lovaniaHungary

2006/2007

Fi l dSpain

PortugalCzech Republic

2010

0 50 100 150

BelgiumFinland

Specialised Organic Retail Report Europe  2008ORA, June 2008, page 4

Annual amount spent on organic food per person (≥ € 25)person (≥ € 25)

Specialised Organic Retail Report Europe  2008ORA, June 2008, page 5

Specialised organic retailers >25%

90 10

Market share within the organic market (%)

Denmark

Romania

Malta 

Sweden

5

5

4

80

80

16

90

15

15

80

10

Bulgaria

Czech Republic

Finland

Denmark

10

8

7

5

80

63

84

80

10

29

9

15

Specialised organic shops (%)

Switzerland

Norway

Great Britain

Bulgaria

15

15

13

76

85

75

9

0

12

p g p ( )

market share of conventional retailers (%)

other sales channels (%)

Croatia

Austria

Slovenia

20

18

18

75

65

78

5

17

5

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Cyprus 25 75

Specialised Organic Retail Report Europe  2008ORA, June 2008, page 6

Specialised organic retailers ≤ 25%

Germany 28 49 23

Market share within the organic market (%)

Hungary

Belgium

34

31

50

61

16

9

Luxembourg

France

40

38

37

40

60

39

20

2

24

Portugal

The Netherlands

Slovakian Republic

52

43

40

45

43

40

3

14

20 Specialised organic shops (%)

market share of conventional retailers (%)

other sales channels (%)

Greece

Italy

58

55

35

25

8

20

Spain

Poland

75

73

20

20

5

7

Specialised Organic Retail Report Europe  2008ORA, June 2008, page 7

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Specialised organic sector > 40% of market

It l73%

55%Italy

Poland

Portugal

Spain Slovakia

75%52%

40%Spain

58% 43%

The NetherlandsGreece

Specialised Organic Retail Report Europe  2008ORA, June 2008, page 8

Focus CEE

Bulgaria

Croatia

Romania

Poland

Czech Republic

Slovenia

Czech Republic

Slovakia

Hungary

Specialised Organic Retail Report Europe  2008ORA, June 2008, page 9Specialised Organic Retail Report Europe 2008

Retail channels for organic products in CEE(2006/2007)( / )

Conventionalsupermarket

Spec. organic

Health food

other Other - descriptionp g

shops shopsBU 80 % 10 % 10 % Small shops w. few org. products

CR 75 % 20 % 10 % Farmers’ market (2%), box (2%)

CZ 63 % 8 % 14,5% 12 % Drugstores, pharmacies, otherCZ 63 % 8 % 14,5% 12 % g , p ,

HU 50 % 34 % 16 % Catering & restaurants (8 %), online sales (5 %), box (3 %)online sales (5 %), box (3 %)

PL 20 % 73 % 7 % Online sales, crafts (bakery…)

RO 80 % 5 % 15 % 10 %RO 80 % 5 % 15 % 10 %

SK 40 % 40 % 20 %Specialised Organic Retail Report Europe  2008ORA, June 2008, page 10

SI 80 % 15 % 5 % Direct sales, crafts, online

Retail channels for organic products:health food shops, specialised organic shops ()

Market share

No. of outlets

Range width

Range focus

BU 10 % 2 300 Processed packaged p./ Dairy /Fresh

CR 20 % 20 200 - 500 Processed packaged p. / VegetablesCR 20 % 20 200 500 Processed packaged p. / Vegetables

CZ 22,5 % 500 (10) 300 (1.000) Processed packaged p. / Nuts, dried fruits cereals legumes / Drinksfruits, cereals, legumes / Drinks

HU 34 % 80 (10) wide Bakery / Fresh / Cereals, seeds

PL 73 % (250) (500- 2 000) Cereals/ Vegetables and fruits / MeatPL 73 % (250) (500- 2.000) Cereals/ Vegetables and fruits / Meat

RO 5 % 100 (2) Soy products / Herbs / Honey (Dairy / Bread)(Dairy / Bread)

SK 40 % 56 30 Cereals/Confectionary /Milling p., tea

SI 15 % 20 2 500 Fresh vegetables and fruits / Basic Specialised Organic Retail Report Europe  2008ORA, June 2008, page 11

SI 15 % 20 2.500 Fresh vegetables and fruits / Basic foods / Processed plant products

Main reasons for buying inMain reasons for buying in specialised organic shops

• Wider product range, regular supply

• Competence of shop staff

• Availability of special non-food items

Specialised Organic Retail Report Europe  2008ORA, June 2008, page 12

Customer typology in specialised organicCustomer typology in specialised organic retail

2006:

• young – middle age urban health conscious• young – middle age, urban, health‐conscious, 

well informed; health problems; 

i llenvironmentally aware

2010:2010:

• share of customers with health problems decrease - environmentally aware increase; moredecrease environmentally aware increase; more families with small children; trendy

Specialised Organic Retail Report Europe  2008ORA, June 2008, page 13

Future developmentof the specialised organic market sectorof the specialised organic market sector

Market share and turnover:Market share and turnover: • will decrease in favour of supermarkets, • nevertheless the overall turnover of specialised• nevertheless the overall turnover of specialised 

organic retail will increase.Product range:g• growth ‐ widening; • more fresh products and regional products; • increasing import AND domestic production

Specialised Organic Retail Report Europe  2008ORA, June 2008, page 14

Challenges/Opportunities for specialised retailers in CEE markets

Challenges: • Cooperation: vertical & horizontal

• Missing efficient supply chain structures • Lax organic retail standards • Big pressure from conventional retail tradeOpportunities:Opportunities:• Shops networking in order to build single brands and share supply

structures• Keywords: freshness, food with a story, convenience, service• Attune store concept to wider target groups (LOHAS)• Educate staff in product knowledge, management & communication• Profit from growth of organics in conventional retail channels

Specialised Organic Retail Report Europe  2008ORA, June 2008, page 15

Country inhabitants per organic food sales outletCountry inhabitants per organic food sales outlet

900

Italy

90‘000Poland

Specialised Organic Retail Report Europe  2008ORA, June 2008, page 16

Country inhabitants per specialised organic storeCountry inhabitants per specialised organic store

13‘000

Switzerland

11‘000‘000

Romania

Specialised Organic Retail Report Europe  2008ORA, June 2008, page 17

Specialised Organic Retail Report Europe 2008Specialised Organic Retail Report Europe 2008

27 C i•27 Countries

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Specialised Organic Retail Report Europe  2008ORA, June 2008, page 18