Report: Organics - UK - October 2008 TOC

Issues in the Market
Key themes
Definition
Abbreviations
Market in Brief
Growth slows but is still impressive in 2008
Milk and yoghurts propel dairy as fastest growing category
Box schemes steal supermarket share
Further threats to sector growth
Market insights
The future
Internal Market Environment
Key points
Health claims dispute continues
- Figure 1: Agreement with selected lifestyle statements, 2004-08
What then for consumers?
Burgeoning kids' organic sector boosted by health concerns
Pesticide and antibiotics linked to human illness
Technology tackling organic fraud
Ethical row rages on over organic imports
Provenance assumes greater importance
- Figure 2: Agreement with selected lifestyle statements, 2004-08
Organic sector sustains casualties in 2008
Media attention diverts shoppers towards other ethical categories
- Figure 3: Agreement with selected lifestyle statements, 2004-08
Broader Market Environment
Key points
Economic gloom sets in
- Figure 4: Changes in socio-economic groups, 2003-13
Soaring production costs hamper organic conversion rate
Smaller household demands not always met
- Figure 5: Changes in UK household size, 2003-13
Communicating organic to younger shoppers
- Figure 6: UK population trends by age, 2003-13
Regulations
EC drops ' bio' logo
Nitrate proposals threaten bacon and ham production
Jury is out on organic for the FSA
Green credentials: Implicit with organic?
Communicating welfare standards
Tackling broader issues
Competitive Context
Key points
Competitive ethical categories come to the fore
Organic: a key premium claim
- Figure 7: Summary of market strategies in other specialist food markets, 2008
Strengths and Weaknesses in the Market
Strengths
Weaknesses
Market Value and Forecast
Key points
Pace of growth slows
- Figure 11: UK retail value sales of organic foods, 2003-08
A bright future forecast for quality producers
Market slows with economy
More challenging times ahead
- Figure 12: Forecast of uk retail value sales of organic foods, at current prices, 2003-13
Segment Performance
Key points
Dairy leads segment growth
- Figure 13: UK retail sales of organic food, by type and value, 2004-08
Organic produce outperforms market
- Figure 14: UK retail sales of organic fruit and vegetables, by value, 2003-08
...but deflation, supply issues and ' toxic' reports hamper category
- Figure 15: UK retail sales of organic fruit and vegetables, by type and value, 2004-08
Bolstering dairy sales
- Figure 16: UK retail sales of organic dairy products, by value, 2003-08
Buoyant milk sales threatened by uncertain future
- Figure 17: UK retail sales of organic dairy products, by type and value, 2004-08
Domestic yoghurt brands elbow out the competition
Competition mounts in the butter category
Mainstream organic spreads its wings
- Figure 18: UK retail sales of organic prepared foods and groceries, by value, 2003-08
Free-for-all drives ambient sales
Frozen foods suffer; chilled may follow
- Figure 19: UK retail sales of organic prepared foods and groceries, by type and value, 2004 -08
Solid growth for meat but sales are now sliding
- Figure 20: UK retail sales of organic meat and poultry, by value, 2003-08
Organic meat imports increase and British farmers struggle
- Figure 21: UK retail sales of organic meat, poultry and fish, by type and value, 2004-08
Strong growth for organic bread
Buoyant cereals market attracts new entrants
- Figure 22: UK retail sales of organic breads, bakery produce and cereals, by value, 2003-08
Nothing but organic for babies
- Figure 23: UK retail sales of organic baby food and infant formula, by value, 2003-08
Cracks appearing in the organic egg market
- Figure 24: UK retail sales of organic eggs, by value, 2003-08
Dairy products to lead growth
- Figure 25: Forecast of uk retail value sales of organic foods by type, at current prices, 2003-13
- Figure 26: Forecast of uk retail value sales of organic foods by type, at 2008 prices, 2003-13
- Figure 27: Percentage share of segments within the uk organic food market, 2003, 2008 and 2013
Product Positioning
Key points
Great variation in fresh produce
- Figure 28: Price comparison of organic vs standard fruit and vegetable ranges, October 2008*
Premiums of around a third for dairy
- Figure 29: Price comparison of organic vs standard dairy ranges, October 2008
Bargain beans and premium peas
- Figure 30: Price comparison of organic vs standard prepared foods, October 2008
Chickens priced out of the credit crunch market
- Figure 31: Price comparison of organic vs standard meat and poultry, October 2008
Small premiums for standard bread and cereal lines
- Figure 32: Price comparison of organic vs standard bread and cereal ranges, October 2008
Organic baby food: surprisingly affordable
- Figure 33: Price comparison of organic vs standard baby food and formula, October 2008
Companies and Products
Fruit and vegetables
Organic Farm Foods
Pollybell Organic Farm
Produce World
Dairy products
Lurpak
Rachel' s Organic
Yeo Valley
Eggs
Noble Foods
Prepared foods
Duchy Originals
Heinz
Seeds of Change
Simply Organic
Chocolate
Green & Black' s
Montezuma' s
Traidcraft
Meat and poultry
Friland
Higher Hacknell Farm
Laverstoke Park Farm
Rhug Estate
Cereals
Jordans
Baby food and infant formula
Ella' s Kitchen
HiPP
Organix
Peter Rabbit Organics
Plum
Trade bodies
Brand Communication and Promotion
Key points
Record spend expected in 2008
- Figure 34: Main monitored media advertising expenditure on organic foods, 2004-08*
Brands fight back against own-label invasion
- Figure 35: Top 10 main monitored media advertising expenditure by organic brands, 2004-08
M&S leads retailer spend on organics
- Figure 36: Top 10 main monitored media advertising expenditure by retailers on organic foods, 2004-08
Trade bodies
Federation of Organic Milk Groups
OMSCo
European Commission
Organic Trade Board
Channels to Market
Key points
Box schemes deliver market share growth
- Figure 37: UK retail sales of organic food, by outlet and value, 2006-08
Organic goes mainstream
- Figure 38: Summary of grocery retailer organic targets/initiatives, October 2008
Economic hardship fails to quell growth of small chains
Box schemes proliferating
Farmers' markets: more sales, more often
- Figure 39: How often adults shop at farmers' markets, 2007
The Consumer -- Organic Foods Preferences
Key points
- Figure 40: Factors taken into account when buying food, July 2008
Organic low on the radar for shoppers
Organic vs. locally sourced
- Figure 41: Profile of those stating locally sourced and organic as key considerations, July 2008
Fruit, eggs and convenience choices
- Figure 42: Types of organic products purchased in the last 12 months, July 2008
Opportunities to expand organic foods bought
- Figure 43: Number of different types of organic products purchased in the last 12 months, July 2008
- Figure 44: Repertoire of organic foods bought and key considerations in food purchase, July 2008
Appendix
Advertising data
Appendix -- Internal Market Environment
- Figure 51: Agreement statement "It is worth paying more for organic food", by total family income before tax, 2008
Appendix -- Broader Market Environment
- Figure 52: PDI and consumer expenditure, at constant 2003 prices, 2003-13
Appendix -- Companies and Products
Bread and cereals
The Celtic Bakers
Honeyrose Bakery
Pertwood Organic
True Loaf Baker
White' s
Other dairy products
Calon Wen
The Dairy House
Graham' s The Family Dairy
Other prepared foods
Billington' s
Fresh! Naturally Organic
Kallo Foods
Suma
The English Provender Company
Venture Foods
Yumbles
Appendix -- Channels to Market
- Figure 54: How often adults shop at local markets, by demographics, 2007
- Figure 55: How often adults shop at farmers' markets, by demographics, 2007
Appendix -- The Consumer: Organic Foods Preferences: Detailed Demographics
- Figure 56: Factors taken into account when buying food by detailed demographics, July 2008
- Figure 57: Factors taken into account when buying food by detailed demographics, July 2008
- Figure 58: Factors taken into account when buying food by detailed demographics, July 2008
- Figure 59: Cross tab for Factors taken into account when buying food, July 2008
- Figure 60: Cross tab for Factors taken into account when buying food, and things consumers look for in the food purchased, July 2008
- Figure 61: Types of organic products purchased in the last 12 months, by detailed demographics, July 2008
- Figure 62: Types of organic products purchased in the last 12 months, by detailed demographics, July 2008
- Figure 63: Types of organic products purchased in the last 12 months, by detailed demographics, July 2008
- Figure 64: Types of organic products purchased in the last 12 months, detailed demographics, July 2008
- Figure 65: Types of organic products purchased in the last 12 months, by detailed demographics, July 2008

Organics - UK - October 2008

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