The UK is set to become Europe’s largest market for organic food. A new Datamonitor report on organic food has highlighted developing trends in Europe and the US. The organic market has witnessed unprecedented growth over the past ten years and its popularity looks set to continue into 2005, with the UK showing particularly rapid growth. But, even there, full-scale conversion to organics is unlikely.
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Independent market analyst Datamonitor examined the organic market in five European countries and the US for its new report “Next Generation Organics” and found that UK consumers are set to become Europe’s biggest spenders on organic food. Whilst currently ranking as the third largest in Europe, the UK organic market is set to witness unprecedented growth over the next five years.
Fuelled by the widespread concerns about and resistance to GMOs, a growing interest in healthy eating and recent food scares such as BSE, UK organic food sales are set to total $4,135 million in 2005, growing faster than any other in Europe and the US. Government support and retailer pressure are both expected to play a large role in the growth of this market, alongside changing consumer attitudes and priorities. UK consumers are expected to become the largest consumers of organic food in 2005 with per capita expenditure set to total $69.5, well above the European average of $42.
However, consumers are unlikely to see a return to the pre-second world war days when food was 100% organic. Consumers have become accustomed to buying food on demand irrespective of season, have grown used to the color and size of their fruit and vegetables, welcome the longer shelf-life of food and appreciate the addition of flavor enhancers.
Iceland’s misguided attempt at switching to organic frozen products highlights the fact that consumers are not ready for – and indeed, don’t want – full-scale conversion. Manufacturers should appreciate that organic remains a niche, although rapidly developing, market, with certain products wearing the organic badge better than others. The organic momentum is clearly underway but consumers are not ready for full-scale conversion. If retailers are looking to increase their organic sales then gentle persuasion is needed, as implementing a 100% switch to organic food will simply frighten off new consumers.
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