Organics - Spain - November 2007

Table of Contents

• Issues in the Market
• Definition
• Consumer research
• Abbreviations
• Market in Brief
• The Spanish paradox
• What is organic? That is the question!
• Small, but growing
• Better availability in a crucial role
• Further growth
• Internal Market Environment
• Key Points
• Organic offering benefits from general health trend...
• ...but further consumer education is required
  • Figure 1: "All natural" versus "organic" claims in new product launches, by category, 2002-07
• Increased expenditure
  • Figure 2: Spanish household expenditure on food and non-alcoholic drinks, 2000-05
• Consumer preference for fresh food
  • Figure 3: Fresh vs frozen food, by expenditure, 2006
• Organic products are perceived as natural and healthy
  • Figure 4: Characteristics associated with organic products, 2005
  • Figure 5: Reasons for eating organic products, 2005
  • Figure 6: Reasons for not eating organic products, 2005
• Organic production expands and producers become larger
  • Figure 7: Trends in Spanish organic production, 1997-2006
• Public funding backs further development
• Broader Market Environment
• Key Points
• Ageing, expanding population creates larger market for organic products
  • Figure 8: Trends in Spanish population, by age, 2002-12
• Greater consumer wealth is beneficial, but growth is set to diminish
  • Figure 9: Trends in Spanish PDI, consumer expenditure and GDP, at current prices, 2002-12
• Who' s Innovating?
• Key Points
• Launch activity slowing down
  • Figure 10: New organic food launches, by country, 2006
  • Figure 11: New organic food launches in Spain, by category, 2006
• 2007 launches concentrate on yogurt
• Baby food also important for organic NPD
• Limited product offering in global terms
• Market Value and Forecast
• Key Points
• More competitive prices reflect on value performance
  • Figure 12: Spanish retail value sales of organic food and non-alcoholic drinks, 2002-07
  • Figure 13: Indexed growth in sales of organic food, by country, 2002-07
  • Figure 14: Spend per adult (aged 15+) on organic food and non-alcoholic drink, by country, 2002-07
• Political backing and health awareness amongst positive future drivers
• More focus on new product development is necessary
• Opportunities for niche players and own-labels
• Forecast
  • Figure 15: Forecast of Spanish retail value sales of organic food and non-alcoholic drinks, at current and constant prices, 2002-12
• Declining annual growth fails to achieve double digits by 2011
• Opportunities to prevent decline in annual growth
• Factors used in the forecast
• Segment Performance
• Key Points
• Crops and pulses take the biggest share of organic farmland
  • Figure 16: Use of Spanish organic farmland, by type of cultivation, 2006
• Fruit and vegetables account for the bulk of organic sales
  • Figure 17: Spanish retail value sales of organic food and non-alcoholic drinks, by type, 2002-07
• Market Share
• Key Points
• Improving supply structure...
• ...but continued fragmentation
• Carrefour shows the way in own-labels
• Lack of branding
• Companies and Products
• BioBio Productos Ecológicos
• Biocop Productos Biológicos
• Carrefour
• Hipp
• Channels to Market
• Key Points
• Specialist outlets dominate, but grocery stores growing in importance
  • Figure 18: Spanish retail value sales of organic food and non-alcoholic drinks, by outlet type, 2005-07
• Supermarkets account for the bulk of food purchases
  • Figure 19: Preferred place to purchase food, 2005-06
  • Figure 20: Preferred place to purchase fresh food, 2005-06
  • Figure 21: Preferred place to purchase dry food, 2005-06
• Issues of demand
  • Figure 22: Reasons for selling organic products, 2005
  • Figure 23: Reasons for not selling organic products, 2005
• The Consumer - Pan-European Overview
• Key points
• Organics have caught the Spaniards' attention
  • Figure 24: Organic foods purchased in the last 12 months, by country, September 2007
• Healthier, but not widely enough available
  • Figure 25: Reasons for buying organic foods, by country, September 2007
  • Figure 26: Attitudes towards organic vs non organic foods, by country, September 2007
• Lack of availability and high prices are the biggest barriers to market growth
  • Figure 27: Reasons for not buying organic foods, by country, September 2007
• The Consumer -- Purchasing and Attitudes
• Key points
• Who buys organic food
  • Figure 28: Purchasing of organic food in last 12 months, by type, September 2007
  • Figure 29: Types of organic foods bought in last 12 months, by gender, age, income and presence of children, Spain, September 2007
• Reasons for buying organic -- health is the key motivator
  • Figure 30: Reasons for buying organic foods, September 2007
  • Figure 31: Reasons for buying organic foods, by gender, age, income and presence of children, Spain, September 2007
• Organic vs food miles
  • Figure 32: Attitudes towards organic foods, September 2007
  • Figure 33: Attitudes towards organic vs non-organic foods, by gender, age, income and presence of children, Spain, September 2007
• Reasons for not buying organics -- lack of availability
  • Figure 34: Reasons for not buying organic foods, September 2007
  • Figure 35: Reasons for not buying organic foods, by gender, age, income and presence of children, Spain, September 2007
• Repertoire -- how many products do people buy
  • Figure 36: Organic repertoire, Spain, September 2007
  • Figure 37: Repertoires, by demographic sub-group, September 2007
  • Figure 38: Repertoire by number of products bought, Spain, 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 39: Attitude groups by country, September 2007
  • Figure 40: Attitude groups by demographic sub-group, Spain, September 2007
  • Figure 41: Number of food categories where organics are bought, by attitude groups, Spain, September 2007
• The Consumer -- Further Attitudes Towards Organics
• Key points
• Spaniards most willing to pay more for additive-free foods
  • Figure 42: Attitudes towards organic, additive-free and free-range foods, by country, 2006
• Willingness to pay a premium for organics increases
  • Figure 43: Trends in attitudes towards organic, additive-free and free-range food, 2004-06
  • Figure 44: Consumption of organic products, by age, 2005
• Question of affordability
• Southern craze
  • Figure 45: Consumption of organic products, by region, 2005