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British Consumers Spoilt for Choice in Organic
Market
Research by Organic Monitor shows that British consumers have access to
the most comprehensive range of organic foods in the world.
Britain is one of the few countries in the world that has organic foods
sold by all the major retailers. In January 2002, organic foods can be
found in supermarkets, independent stores, specialist retailers like
health food shops, as well as dedicated organic food retailers. British
consumers can also buy organic foods via the internet and the telephone,
and can get home deliveries from supermarkets and the box scheme.
A wide range of organic foods is available in supermarkets, which
account for the highest sales of organic foods in the UK. Tesco is the
market leader in the organic food industry and it has over 1200 items in
its organic food range. It reported that sales of organic foods had
reached
£200
million (US $286 million) in 2001.
The two other leading supermarkets in the British organic food industry
are Sainsbury’s and Waitrose and they have a similar number of products
in their organic food ranges. Although their organic food sales are
lower than Tesco, the market share of organic foods of conventional
foods in their stores is much higher. Waitrose stated that organic food
sales had exceeded 12 percent of all food sales in its stores in 2001.
In Sainsbury’s, fruit like organic kiwis had exceeded 20 percent of kiwi
sales.
European retailers are far behind British supermarkets in the organic
food industry. Only Denmark comes close with FDB, the flagship of the
Danish retail sector, offering over 800 items in its organic food range.
However the second largest retailer, Dansk Supermarked, has less than
half this number.
Germany has the largest grocery market in Europe however German
retailers have been late to enter the organic food industry. The largest
retail groups, Rewe and Edeka, had fewer than 300 items in their organic
food range in 2001. The widest range is in Tegut, a regional supermarket
with limited geographical coverage.
France maybe home to some of the largest international retail groups but
its hypermarkets also lag behind British multiples. Carrefour, the
world’s second largest retail group
and the leading exponent of the hypermarket concept, leads the French
market but it is yet to reach the 500 organic product mark.
Last week, British supermarkets were criticised
for selling organic foods at high prices compared to other marketing
channels. Prices are debatably higher however no other channel can offer
the range of organic products and convenience offered by British
multiples. If the range of organic foods continues to expand in the
supermarkets, not only will they continue to increase market share in
the British organic food industry but they will also continue to set the
pace in the international retail sector.
Source Reports:
#1201-42 The British Market
for Fresh Organic Fruit
#1201-44 The British Market
for Organic Meat Products
Posted: January 28th 2002
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