The definition of organic farming has been a moving target over the years, but at its core “organic” refers to a series of farm management practices that combine the best in environmental, biodiversity, natural resource preservation, and animal welfare standards.
According to the European Commission’s fact sheet on organic farming, “organic production respects natural systems and cycles,” in order to achieve sustainability without having to resort to genetically modified organisms.
And with more shelf space being dedicated to organic products, more and more consumers in Europe are gravitating towards organic foods for at least a portion of their weekly groceries.
More shelf space and better labelling are driving organic food sales
Once the domain of farmers markets and specialty stores, organic food now competes directly with conventional products in supermarkets and hypermarkets. The increased visibility is certainly having a positive effect on market growth. The organic food and beverage market in Europe was valued at $28.11 billion in 2015 and will reach $39.04 billion by 2020—that’s just shy of a third of the global market, which is expected to reach a value of $135.9 billion by 2020. Overall the European market will grow at a compound annual growth rate of 6.79% over the projected period.
On top of better visibility in shops, labels are getting better, and more clearly outlining what denotes an organic product. As per the European Commission’s fact sheet, foods bearing an “organic” label must consist of at least 95% certified organic ingredients, which is helping European consumers demystify what’s in their food.
Top European countries in terms of revenue and per capita expenditure
While Germany, France and the UK are the biggest organic food markets in Europe in terms of revenue, these countries lag behind the much smaller populations of Switzerland, Denmark and Luxembourg in terms of per capita expenditure.
For years, consumers in these smaller countries have been citing reasons like nutrition, environmental concerns, and better flavor as reasons to go organic. Even though some organic products like milk and eggs can be significantly more expensive than their conventional counterparts, there is a very firm belief in countries like Denmark and Switzerland that it’s worth the premium. And as more consumers opt for organic, the market in Europe will continue its upward climb through 2020.
