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Organic Food Market Assessment 2006 Product Image

Organic Food Market Assessment 2006

  • Published: February 2006
  • Region: United Kingdom
  • Key Note Publications Ltd

FEATURED COMPANIES

  • Alara Wholefoods Ltd
  • Cambrian Organics Ltd
  • Food Brands Group Ltd
  • Higher Hacknell Farm Ltd
  • Meridian Foods
  • Seeds of Change
  • MORE

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 READ MORE >

Executive Summary

1. Introduction

REASONS FOR UPDATING THE REPORT
KEY SOURCES
DEFINITION

2. Strategic Overview

BACKGROUND AND HISTORY
The History and Role of the Soil Association
Definition of Organic Farming
Genetically Engineered (Modified) Crops and Foods
Organic Product Inspection: Certifying Bodies
Table 1: Certifying Bodies and their Coverage of Land and Enterprises (%, thousand hectares and number), January 2005
Organically Managed Land
Table 2: Organically Managed Land in the UK (thousand hectares and %), Years Ending April 1997-2005
Table 3: Organically Managed Land Areas in the UK by Nation (thousand hectares and %), Years Ending April 2003-2005
Table 4: Organically Managed Land in England by Standard Region (thousand hectares and %), Year Ending April 2005
Use of Fully Organic Land
Table 5: Fully Organic Land in the UK by Land Use (thousand hectares and %), Years Ending April 2003-2005
Table 6: Fully Organic Land in the UK — Arable Production by Land Use (thousand hectares and %), Years Ending April 2003-2005
Table 7: Fully Organic Land in the UK — Horticultural Production by Land Use (thousand hectares and %), Years Ending April 2003-2005
Numbers of Producers and Processors/Importers
Table 8: Organic Food and Drink Producers, Processors and Importers in the UK (number), Years Ending April 1995-2005
Table 9: Producers and Processors/Importers of Organic Foods and Drinks in the UK by Nation (number and %), Years Ending April 2003-2005
Table 10: Producers and Processors/Importers of Organic Foods and Drinks in England by Standard Region (number and %), Year Ending April 2005

MARKET DYNAMICS AND SEGMENTATION
Factors Affecting the Market
Challenges to Organic Farmers and Growers
Government Policy and Assistance in Organic Farming and Growing
Health Benefits of Organic Foods and Drinks
Environmental and Animal Welfare Benefits
The Move From Niche To Mainstream: Higher Selling Prices
The Level of Imports
Table 11: Import Levels in Primary Organic Foods — Major Multiples (% by value imported), 2003 and 2004
Table 12: UK Sourcing of Organic Meat, Vegetables and Fruit at Major Supermarkets (% UK sourced), 2003 and 2004
Market Size
The Total Market
Retail Sales by Sector
Import Levels

DISTRIBUTION
COMPETITIVE STRUCTURE
ADVERTISING
THE CONSUMER
MARKET FORECASTS
Table 13: The Forecast UK Market for Organic Foods and Drinks by Retail Value at Current Prices (£m at rsp), 2006-2009

3. Market Size

The Total Retail Market
Table 14: The Total UK Market for Organic Foods and Drinks by Retail Value at Current Prices (£m at rsp), Years Ending April 1994-2004 and Years Ending December 2003-2005

THE RETAIL MARKET BY SECTOR
Table 15: The UK Market for Organic Foods and Drinks by Sector by Retail Value at Current Prices (£m at rsp and %), Years Ending April 2001-2004 and Years Ending December 2004 and 2005
Figure 1: The Estimated UK Market for Organic Foods and Drinks by Sector by Retail Value (%), Year Ending December 2005
Vegetables and Fruit
Dairy Products
Cereal and Baked Products
Meat, Meat Products and Fish
Wines and Fruit Juices/Fruit Drinks
Baby Foods
Coffees, Teas and Hot Drinks
Multi-Ingredient Products/Other Items

ORGANIC `PRODUCER' FOODS AT FARM GATE PRICES
Table 16: Farm Gate Values of Main Organic Foods (£m), Years Ending April 2003 and 2005
Table 17: Farm Gate Values of Main Organic Foods by Produce Category (£m), Years Ending April 2003-2005

4. Advertising and Promotion

MAIN MEDIA ADVERTISING EXPENDITURE
Table 18: Main Media Advertising Expenditure on Organic Foods and Drinks by Brand/Product (£000), Years Ending December 2002-2004 and Year Ending September 2005

EVENTS

5. Distribution

RETAIL SALES BY DISTRIBUTION CHANNEL
Table 19: Retail Sales of Organic Foods and Drinks by Distribution Channel (£m at rsp and %), Years Ending April 2003 and 2004 and Years Ending December 2003 and 2004

6. An International Perspective

THE GLOBAL MARKET
Table 20: Location of the World's Organic Farms and Farmland (%), 2003

THE EUROPEAN MARKET
Table 21: Organically Managed Land in European Countries (thousand hectares, % and 000 holdings), 2004

7. PEST Analysis

POLITICAL FACTORS
ECONOMIC FACTORS
SOCIAL AND ENVIRONMENTAL FACTORS
TECHNOLOGICAL FACTORS

8. Consumer Dynamics

OVERVIEW
Table 22: Summary of Levels of Agreement with Survey Statements (% of respondents), December 2005

REGULAR PURCHASERS OF ORGANIC FOODS OR DRINKS
Table 23: Regular Purchasers of Organic Foods or Drinks (% of respondents), December 2005

OCCASIONAL PURCHASERS OF ORGANIC FOODS OR DRINKS
Table 24: Occasional Purchasers of Organic Foods or Drinks (% of respondents), December 2005

REGULAR PURCHASERS OF ORGANIC FRUIT OR VEGETABLES
Table 25: Regular Purchasers of Organic Fruit or Vegetables (% of respondents), December 2005

REGULAR PURCHASERS OF ORGANIC DAIRY PRODUCTS
Table 26: Regular Purchasers of Organic Dairy Products (% of respondents), December 2005

REGULAR PURCHASERS OF MEAT OR MEAT PRODUCTS
Table 27: Regular Purchasers of Organic Meat or Meat Products (% of respondents), December 2005

REGULAR PURCHASERS OF ORGANIC BREAKFAST CEREALS
Table 28: Regular Purchasers of Organic Breakfast Cereals, Biscuits or Cakes (% of respondents), December 2005

REGULAR PURCHASERS OF ORGANIC BABY FOODS
Table 29: Regular Purchasers of Organic Baby Foods (% of respondents), December 2005

REGULAR PURCHASERS OF ORGANIC FOODS THROUGH BOX SCHEMES, FARM SHOPS AND FARMERS' MARKETS
Table 30: Regular Purchasers of Organic Foods through Box Schemes, Farm Shops and Farmers' Markets (% of respondents), December 2005

PERCEPTION THAT ORGANIC FOODS OR DRINKS ARE TOO EXPENSIVE
Table 31: Agreement that Organic Foods or Drinks are Too Expensive (% of respondents), December 2005

PERCEPTION THAT ORGANIC FOODS OR DRINKS ARE HEALTHIER
Table 32: Agreement that Organic Foods or Drinks are Healthier for You (% of respondents), December 2005

OPINION THAT THE GOVERNMENT SHOULD OFFER MORE ASSISTANCE FOR ORGANIC FARMERS AND GROWERS
Table 33: Agreement that the Government Should do More to Assist Organic Farmers and Growers (% of respondents), December 2005

CONCERN THAT FOODS DESCRIBED AS ORGANIC MAY NOT BE
Table 34: Concern that Foods Described as Organic May Not Be (% of respondents), December 2005

CONCERN ABOUT THE USE OF FERTILISERS OR PESTICIDES
Table 35: Concern About the Use of Fertilisers or Pesticides (% of respondents), December 2005

CONCERN ABOUT THE TREATMENT OF ANIMALS IN FARMING
Table 36: Concern About the Treatment of Animals in Farming (% of respondents), December 2005

9. Company Profiles

INTRODUCTION
Producers, Processors, Manufacturers and Suppliers

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
Cafédirect 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

10. The Future

Market Forecasts
Table 37: The Forecast UK Market for Organic Foods and Drinks by Sector by Retail Value at Current Prices (£m at rsp and %), 2006-2009
Figure 2: The Forecast Total UK Market for Organic Foods and Drinks by Retail Value at Current Prices (£m at rsp), 2006-2009

11. Consumer Confidence

METHODOLOGY

THE WILLINGNESS TO BORROW
Table A: The Average Amount Consumers Are Willing to Borrow in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), November 2004, February 2005, May 2005, August 2005 and November 2005
The Desire to Borrow Stays Strong
Table B: The Number of Adults Willing to Borrow in Order to Purchase Expensive Items (000 and %), November 2004, February 2005, May 2005, August 2005 and November 2005

THE WILLINGNESS TO SPEND FROM SAVINGS
Table C: The Average Amount Consumers Are Willing to Spend from Savings in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), November 2004, February 2005, May 2005, August 2005 and November 2005
Consumers Increasingly Cautious
Table D: The Average Amounts Adults are Confident Spending to Purchase Expensive Items (£ and %), November 2004, February 2005, May 2005, August 2005 and November 2005

12. Further Sources

Trade Associations
Government Sources and Certifying Bodies
Producers, Processors, Manufacturers and Suppliers
Trade Journals
General Sources
Bonnier Information Sources

- 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
- Cafédirect 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

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