The Department of Industry and Trade Can Tho would like to send to the enterprises information summarized from the Ministry of Industry and Trade and foreign prestigious newspapers about the market situation for organic food products as follows:
- Demand for organic products is increasing in many parts of the world:
In the new report “Organic Foods and Beverages: Global Market” by BCC Research (www.bccresearch.com) shows the global market for organic food and beverages worth nearly $ 71.2 billion. in 2012 and is expected to reach 161.5 billion dollars in 2018, the CAGR increase rate is 15%. Asia, Latin America and South Africa are expected to have an increasing demand for organic foods and beverages, while also expanding production of domestic organic products; Governments increased their support through the promulgation of many support policies for the organic agriculture sector, encouraging the development of initiatives for the management of organic products.
Demand for organic food in Asia is also rising compared to other regions of the world. Although the region accounts for 8% of organic land, organic revenue in Asia accounts for only 6% of total global revenue of 82 billion USD. Sales from organic products currently account for less than 1% of total food sales in Asian countries. Among them, the top 3 markets are China, Korea and Japan.
- Rapid increase in demand for organic products in the UK:
The 2018 organic market report of the British Land Association published on February 7, 2018 shows that the UK organic market is currently worth more than £ 2.2 billion, up 6% in 2017. The market has had six years of steady growth with the proportion of organic products accounting for 1.5% of the UK food and beverage market.
While sales of organic food in supermarkets continue to increase, this year will be the year showing the sharp increase in retail sales of online organic products. With many methods of application in online sales and many attractive policies to attract customers’ attention, the online business system of organic products has grown faster than the traditional supply system through markets and supermarkets, with the rate of buying and selling organic products, account for nearly 30% of the market share.
Some private farms have succeeded in transforming business models according to market tastes, when customers begin to tend to consume originated products. Evidence Organic is a typical case, they sell organic meat they produce through online channels, through small retailers, and although not sold in supermarkets, the company’s revenue has increased by 20. % last year. In November 2017, they expanded their business scope by acquiring Hung Well Meat Company.
Mark Bury, Eversfield Organic’s chief executive, said quality and convenience are key to success in this area: “People always ask about the origin of the meat they buy, and in the last few years they have We have seen a lot of people who want to understand what organic farming is, customers are looking for convenience and looking for suppliers that meet their needs. consuming meat, they buy less, but buy better quality meat. “
Organic sales in the catering service sector are also increasing, now reaching 84.4 million pounds. Spending on organic products through Food for Life Served Here has doubled in the past two years, reaching £ 18 million in 2017 and has attracted a number of registered members to double the program. since it was launched a year ago. Refer to the program content at: https://www.foodforlife.org.uk/about-us/food-for-life-served-here.
- Consumers and retailers in the UAE are seeking additional supplies for organic products.
According to the analysis, demand in the UAE is increasing for organic products. The reason is the ban on the import of some fruits from Egypt, Oman, Lebanon and Yemen in May last year, because products from these countries are related to concerns about pesticide residues. object.
Meanwhile, the retail space for organic products in retail has increased by 60% over the past 4 years and continues to expand in Saudi Arabia, Qatar and Kuwait.
However, only some brands are certified organic products. According to Mintel, only 2% of food and drink products in the UAE market are recorded as organic as of October 2017.
Some organic food brands like Arla own the product of Heinz Organic Tomato Ketchup and tomato sauce. Walji is a retailer that plays an important role in raising consumer awareness of organic food and beverages, and is also spending a lot of sales on this product.
(Source: 1. Summary of Ministry of Industry and Trade; 2.
https://www.bccresearch.com/pressroom/fod/global-market-organic-foods-beverages-reach-nearly-$161.5-billion-2018); 3. https: //www.soilas