Organics - Italy - November 2007

Table of Contents

• Issues in the Market
• Definition
• Abbreviations
• Market in Brief
• Value sales recover in 2007
• Mixed fortunes
• Lack of big multinationals
• Specialists lead distribution
• Three in four consumers have tried out organic products
• Internal Market Environment
• Key Points
• Food safety and differentiation of the food offer
• In search of a USP
• The good, the bad and the ugly
• Pricing is a key issue...
• ...or is it?
• Government initiatives
• New EU legislation
• Broader Market Environment
• Key Points
• Positive population trends
  • Figure 1: Trends in Italian population, by age, 2002-12
• Improved economic setting
  • Figure 2: Trends in Italian PDI, consumer expenditure and GDP, at current prices, 2002-12
• Food and non-alcoholic drinks take a stable share of household spend
  • Figure 3: Detailed breakdown of consumer spending in Italy, 2000-04
• Who' s Innovating?
• Key Points
• Relatively few launches in Italy
  • Figure 4: New organic product launches, by country, 2006
  • Figure 5: New organic product launches in Italy, by category, 2006
• Pasta basics
• Organic convenience
• Expanding range of organic dairy products and baked goods
• Market Size and Forecast
• Key Points
• Back to growth
  • Figure 6: Italian retail value sales of organic food and non-alcoholic drinks, 2002-07
  • Figure 7: Annual spend per adult on organic food, by country, 2002 and 2007
  • Figure 8: Indexed growth in sales of organic food and drinks, by country, 2002-07
• Dairy takes the biggest share and outperforms other sectors in 2007
  • Figure 9: Italian retail value sales of organic food and non-alcoholic drinks, by type, 2005-07
• It is not only about the price
• Environment vs health
• Expanding the consumer base through improved distribution
• Forecast
  • Figure 10: Forecast of Italian retail value sales of organic food and non-alcoholic drinks, at current and constant prices, 2007-12
• Promising economic conditions will pull market out of stagnation
• Potential remains to further increase growth
• Factors used in the forecast
• Segment Performance
• Key Points
• Dairy products
  • Figure 11: Italian retail value sales of organic dairy products, 2002-07
  • Figure 12: Italian retail value sales of packaged organic dairy products*, 2006
• Potatoes, fruit and vegetables
  • Figure 13: Italian retail value sales of organic potatoes, fruit and vegetables, 2002-07
• Meat and poultry
• Pasta
• Market Share
• Key Points
• Fragmented market
• Dairy products
• Fruit and vegetables
• Meat, poultry and eggs
• Own-labels
• Companies and Products
• Alce Nero & Mielizia
• Almaverde Bio
• Fattoria Scaldasole
• Granarolo
• Channels to Market
• Key Points
• Greater share of total sales goes through specialist outlets
  • Figure 14: Italian retail value sales of packaged organic foods*, by outlet type, 2006
  • Figure 15: Number of food retail outlets in Italy, by type, 2000-04
• The Consumer -- Pan-European Overview
• Key Points
• Organic fruit and vegetables are the number-one choice
  • Figure 16: Organic foods purchased in the last 12 months, by country, September 2007
  • Figure 17: Purchasing of organic foods, by country, September 2007
• Healthier, but expensive
  • Figure 18: Reasons for buying organic foods, by country, September 2007
  • Figure 19: Attitudes towards organic vs non-organic foods, by country, September 2007
  • Figure 20: Reasons for not buying organic foods, by country, September 2007
• The Consumer -- Purchasing and Attitudes
• Key Points
• The typical organic shopper is from Northern Italy, aged 35-54, on medium-high income and with children
  • Figure 21: Purchasing of organic foods in the last 12 months, by type, September 2007
  • Figure 22: Types of organic food bought in the last 12 months, by gender, age, income and presence of children, Italy, September 2007
• Health and food safety are key issues
  • Figure 23: Reasons for buying organic foods, September 2007
  • Figure 24: Reasons for buying organic food, by gender, age, income and presence of children, Italy, September 2007
• Organic food vs food miles
  • Figure 25: Attitudes towards organic vs non-organic foods, 2007
  • Figure 26: Attitudes towards organic vs non-organic foods, by gender, age, income and presence of children, Italy, September 2007
• Reasons for not buying organic
  • Figure 27: Reasons for not buying organic foods, September 2007
  • Figure 28: Reasons for not buying organic foods, by gender, age, income and presence of children, Italy, September 2007
• Repertoire -- how many products do people buy
  • Figure 29: Organic repertoire, September 2007
  • Figure 30: Repertoires, by gender, age, income and working status, Italy, September 2007
  • Figure 31: Repertoire by number of products bought, September 2007
• Attitude groups
• Evangelicals (18% of Internet users)
• Foodies (26% of Internet users)
• Well-beings (21% of Internet users)
• Pushed (36% of Internet users)
  • Figure 32: Attitude groups by country, September 2007
  • Figure 33: Attitude groups by demographic sub-group, Italy, September 2007
  • Figure 34: Number of food categories where organics are bought, by attitude groups, Italy, September 2007