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The Organic Food and Drink Market Still at an Annual Growth Rate Exceeding That for Non-Organic Foods for Most of the Period to 2009

Posted on: Friday, 31 March 2006, 12:00 CST

Research and Markets (http://www.researchandmarkets.com/reports/c35000) has announced the addition of Organic Food Market Assessment 2006 to their offering.

The total organic food and drink market increased in value at retail level by 10.1% in 2005. Within this, vegetables and fruit increased their share, while dairy and bakery products retained steady shares. The proportion held by meat (and, to a much smaller extent, fish) has grown, as has that accounted for by wines, fruit juices and hot beverages. However, baby foods and the range of other multi-ingredient items have lost share, although baby food sales have still increased. The overall market is now growing at a stable rate of around 10% per year, after much more substantial annual growth between 1996/1997 and 2000/2001.

The introduction of new 'decoupled' government payments in 2005 to organic farmers and growers, no longer related to organic production, have created new interest in the market, with a doubling of requests for information received by the Organic Conversion Information Service (OCIS). Meanwhile, the Soil Association continues to promote the range of claimed health, environmental and animal welfare benefits of organic foods and drinks.

The total area of organically managed land in the UK peaked in 2001/2002 and 2002/2003, and steadied at a marginally lower level in 2003/2004 and 2004/2005, as the proportion 'in conversion' had fallen to a low percentage. More than 50% of organic land is in Scotland, with less than 40% in England and the remainder in Wales and Northern Ireland. Overall, nearly 90% is grassland, with less than 10% being arable or used for horticulture. The number of organic primary food producers peaked in 2002/2003, whereas the number of processors and importers steadied to a small yearly increase (albeit following a decline in 2002/2003).

The organic food and drink market is characterised by large numbers of small producers, although there is now evidence of increases in size to challenge the remaining smaller companies. There is growing activity in primary producers operating as co-operatives, and the share of organic food sales through direct outlets, notably box schemes, has increased significantly. This has affected sales of organic produce through the dominant grocery multiples of Tesco, Sainsbury's and Waitrose. The higher prices charged for organic products are under pressure from grocery multiples' demands, from increasing economies of scale at producers and from any overcapacity situations resulting from supply temporarily exceeding demand.

A significant proportion of organic meat, vegetables and fruit is still imported, as are many bakery items, fruit juices, hot beverages, baby foods and some multi-ingredient products. The Soil Association continues to campaign against this on behalf of UK farmers and growers, citing the Government's target of only 30% of total organic produce imported by 2010.

The organic food and drink market is forecast to grow at a slowing rate in the future, although still at an annual growth rate exceeding that for non-organic foods for most of the period to 2009. However, this report does not predict any substantial increase in the numbers of heavy consumers of organic produce -- the majority still buy only relatively small proportions of organic foods and drinks within their total grocery purchases.

Companies Mentioned:-

Alara Wholefoods Ltd

Alpro (UK) Ltd

Alvis Brothers Ltd

Arla Foods UK PLC

Ashbourne Biscuits Ltd

Aspall Cyder Ltd

Baxters Food Group (WA Baxter & Sons Ltd)

Belvoir Fruit Farms Ltd

Bennett Opie Ltd

Cafedirect PLC

Cambrian Organics Ltd

Cauldron Foods Ltd

Clipper Teas Ltd

Coombe Farm

Crazy Jack

Cumbria Organics Ltd

Deans Foods Ltd

Doves Farm Foods Ltd

Duchy Originals Ltd

Dumfries & Galloway Organic Network

Eastbrook Farm Organic Meats Ltd

Fieldfare Organic and Natural Ltd

Food Brands Group Ltd

Gerber Foods Soft Drinks Ltd

Goodlife Foods Ltd

Graig Farm Organics

granoVita UK Ltd

Green & Black's Ltd

Go Organic

Haldane Foods Ltd

HJ Heinz Company Ltd

Higher Hacknell Farm Ltd

High Weald Dairy

Hipp Organic

W Jordan (Cereals) Ltd

Kallo Foods Ltd

Kettle Foods Ltd

Langmead Farms Ltd

Lyme Regis Fine Foods Ltd

Mackie's Ltd

Manor Farm Organic Milk Ltd

Martlet Natural Foods (Martlet Natural Food & Drink Ltd)

Meridian Foods

Northumbria Organic Producers

Nutricia Ltd

OMSCo

Organic Farm Foods Ltd

Organic Livestock Farmers of Cornwall & Devon

Organic Roots

Organix Brands Ltd

The Pertwood Organic Cereals Company Ltd

Pim Hill Organic Farm

Purely Organic

Rachel's Organic Dairy (Rachel's Dairy Ltd)

Riverford Organic Vegetables Ltd

Rowse Honey Ltd

Sedlescombe Organic Vineyard

Seeds of Change

September Organic Dairy Ltd

Sheepdrove Organic Farm

Shepherdboy Ltd

Simmers-Nairn (Simmers of Edinburgh Ltd)

Simply Organic Ltd

Somerset Organics

Swaddles Green Farm

Tetley GB Ltd

The Tracklement Company Ltd

R Twining and Company Ltd/Jacksons of Piccadilly

The Village Bakery (The Village Bakery (Melmerby) Ltd)

The Welsh Hook Meat Centre Ltd

H Weston & Sons Ltd

James White Drinks Ltd

Whitworths Sugars

Wilkin & Sons Ltd

The Yeo Valley Organic Company Ltd

For more information visit http://www.researchandmarkets.com/reports/c35000

Source: Business Wire

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