Organic Products Market Showing Recovery
Sales of organic food and drink rose by 2.8% in 2013 after successive
years of decline. Growth was fuelled by strong growth among independent
retailers and healthy online sales.
The organic products market in the UK was worth GBP 1.79 bn (EUR 2.15 bn)
in 2013, up from GBP 1.64bn (EUR 1.97 bn) in 2012 according to the 2014
Organic Market Report from the Soil Association.
The growth is ahead of the overall grocery sales for 2013, which slowed
to just 2.1%.There are signs that the trend is set to continue this year
- organic sales in January were up by 2.5%, outperforming overall
grocery sales which slumped by 3.2%.
During recent tougher economic times organic product purchases with a
premium price were among the first food items to be ditched as consumers
sought to save money on their weekly shopping.
In 2012 organic product sales fell by 1.5% and in the previous year they
slumped by 3.7%. At their height in 2008, before the start of the
recession, sales of organic products totalled GBP 2.1 bn (EUR 2.5 bn).
The small rise in 2013 reverses the ongoing slide in the face of ongoing
tough economic conditions, compared to Fairtrade product sales, which
have been more resilient.
But the organic products market is still dwarfed by the size of the
overall food and drink sector, the largest manufacturing segment in the
UK and now worth GBP 92 bn (EUR 110 bn), according to the Food and Drink
Independent retailers have led the way in organic food sales, reporting
growth of almost 7% (6.9%) to almost GBP 10m (EUR 12m) per week. Online
sales continued to grow strongly with Ocado seeing an increase in sales
of 10.4% . Of the supermarkets, Sainsbury's - the UK's biggest organic
retailer with a hefty 29% market share - enjoyed a 7% increase in sales
of its own-label organic products, closely followed by Waitrose where
sales were 6.5% through the expanding Duchy brand. More than half of all
baby food sold is now organic.
Four out of five households now buy organic produce, the Soil
Association said, with younger shoppers under 34 willing to spend the
most on organic products.
Rob Sexton, chief executive of Soil Association Certification, said: "To
see the organic market showing such strong signs of growth, particularly
when grocery sales as a whole are slowing, shows just how much potential
there is in the organic sector. Both the growth in the organic market
and the accelerating growth of products carrying the Soil Association
logo further highlight the growing public demand
for organic and food logos that they can trust."
The UK's largest retailer, Tesco, said the figures mirrored its own
experience of "significant" organic food growth. Sales of organic
bananas were up by a massive 60% year on year, pink lady apples and
melons up by 20%, lemons and grapes rising by 10% and carrots and
The organic products market is showing positive growth as the UK economy
recovers from the financial crisis. Consumer expenditure on organic
foods is rising, and is expected to continue to rise as confidence
returns. However, it remains to be seen who will capitalise on the
upturn: domestic growers or exporters? With low interest from domestic
producers to convert to organic farming, the UK market could be targeted
again by exporters.
An update on the European market for organic products will be given in
Sustainable Foods Summit. The next edition
will be hosted in
5-6 June. More details are on the
New Tisserand Range Inspired by
Tisserand Aromatherapy has announced its
first products in a five-year collaboration with the National Trust.
Infused with pure essential oils, the Tisserand Aromatherapy Inspired by
National Trust range has been blended by hand to recreate the natural
aromas of gardens and parks cared for by the National Trust.
The first products in the collection will be perfume roller balls, bath
oils and scented sachets , each available in four fragrances: Rose
Garden (essential oils of rose and peach with a hint of sandalwood for a
harmonising effect); Lavender Walk (essential oils of lavender and
chamomile, both known for their calming properties); Citrus Escape
(essential oils of lemon, orange and mint, all known for their uplifting
benefits); and Cedar Retreat (essential oils of cedar, clove and
sandalwood, known for their relaxing properties).
“With such a strong understanding of flowers, plants and essential oils,
Tisserand Aromatherapy is the perfect partner for this project,” said
Phillippa Green, Brand Licensing Manager at the National Trust. “They
have created fragrances that beautifully capture the essence of all that
is special about a visit to a favourite National Trust garden or park.”
The products will be available from April 2014 and each purchase will
support the National Trust’s work as an independent charity
Innovation plays a key role in the beauty industry. By partnering with
National Trust, Tisserand has set the foundations to develop novel lines
of aromatherapy products. Marketing such products will be the major
challenge, especially outside the UK where the National Trust is not
UK Market for Natural & Organic PC
Source: Cosmetics Business / OM
MayaGold Belize Launches Sustainable Sourcing Project
MayaGold Belize, a UK-based non-profit organisation, is launching its
IndieGoGo campaign to raise US $0.8m for a unique social development
programme in the Central American country of Belize.
The 60-day IndieGoGo campaign started on 1st February 2014 and aims to
raise US $800,000 as part of $1.3m round of second-stage capital
funding. These funds will be used to acquire a site in Belize for the
development of an extensive 250 acre organic cocoa estate.
"As a social enterprise we will deliver a range of economic and
environmental benefits over the duration of the programme, like creation
of jobs, training and economic benefits as well balancing these benefits
with the interests of our supporters," says Colin Stanford -Francis,
founder of MayaGold Belize.
"You could say cocoa runs in my blood," says Mr Stanford-Francis who is
the grandson of cocoa farmers. "When I was growing up, I often asked
myself why my grandparents had to toil so hard growing cocoa on their
estate for so little return." He realized that much of the blame lies
with world's commodity markets, which give small cocoa producers such a
raw deal. Crop disease, uneconomic smallholdings, poor-quality beans and
government indifference also play their part in the declining interest
in growing cocoa.
By cultivating 250 acres using modern methods and premium beans,
MayaGold Belize hopes to stem the decline and have a major positive
impact on cocoa production in Belize, where the average farm size is
only 12 acres. MayaGold Belize will produce a range of branded cocoa
products from premium cocoa beans grown on its own estate.
"With a highly developed organic chocolate marketplace creating a
growing demand for cocoa, particularly the high-quality Criollo and
Trinitaro beans, we can achieve a higher price by adding value," says Mr
He sees this type of vertical integration as key to achieving a higher
return than if they were to export the beans as commodity products. The
profits that will be generated in the long term will be ploughed back
into developing the social enterprise model and benefiting the local
economy. Because it will take up to five years to harvest the first
cocoa crop, MayaGold Belize will also market itself as an ecotourism
destination, with the revenue from tourism activities being used to
cover operating costs over the start-up period.
"Generating a revenue stream from ecotourism is critical to the success
of the programme until we can start to benefit from cocoa production,"
says Mr Stanford-Francis. The lodge will have a dream location, with a
dense backdrop of rainforest stretching out to the Maya mountains and
looking out on to the Caribbean Sea. They are looking to create a
facility where people can visit holiday and see the work of the estate
and understand the work that goes into cocoa production and the tropical