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Quick Stats

Quick Stats

Organics Dashboard From Passport

  • The organic segment in Italy is led by Granlatte Societa’ Cooperativa Agricola arl with a value share of 10.9% in 2019, followed by Rigoni di Asiago Srl with a value share of 6.0% and Ecor NaturaSi SpA with a value share of 4.8%.

  • Organic products in Italy registered a market size of US$1,553 bn in 2019, representing 3.2% of global demand with a per capita expenditure of US$25.72.
  • The demand for organic products is expected to remain stable, allowing the organic segment to record a forecast value CAGR of 6.3% for the period 2019-2024.
Qualitative Analysis

Qualitative Analysis

Quick Facts
  • Organic packaged food and beverages in Italy recorded current value growth of 7.9% in 2019, registering a market size of approx. US$1.5 bn.
  • Growth in organic packaged food was led by organic formula milk, which recorded the highest retail current value growth of 16.0% in 2019.
  • Organic non-cola carbonates registered the highest current value growth in 2019, growing by 28.0% despite a 2.0% decline in average unit prices for organic beverages in 2019.
Market Trends
  • Organic products in Italy, particularly organic beverages, are witnessing a sharp rise in demand due to the growing awareness of the benefits of organic consumption, particularly among health-conscious consumers. Another key driver is the increasing demand for locally produced goods from domestic manufacturers. While the increasingly health-conscious consumers are shifting towards organic products, demand is witnessing an increase in relatively niche categories such as organic sparkling water and organic juices as well.
  • Within organic food products in general, consumers in Italy have increasingly begun to value zero-distance, locally sourced products. This trend has been leveraged by organic dairy manufacturers in Italy to improve their sales, with Hay milk, a locally sourced premium organic milk in the Alto Adige region, gaining popularity. This has led to manufacturers like Brimi, Alce Nero and Mila, using the production region as a positioning statement.
Competitive Landscape
  • Alce Nero, one of the major organic players in Italy, with a value share of 4.2% in 2019, saw strong value growth in recent years due to a number of new product launches and a rise in brand awareness amongst consumers. Currently, 80% of the company's turnover derives from the Italian market. The company entered the frozen segment in 2019 through a joint venture with Roncadin, establishing the Alce Nero Freddo range, consisting of frozen pizzas, with Margherita pizza and vegetable pizza as well as ice cream in chocolate, stracciatella, yoghurt and strawberry flavours and various frozen vegetables, with all products using organic Italian ingredients. This entry of one of the leading organic players in frozen food is expected to increase the competition, bring added value to the market and improve the overall share of HW products within frozen food.
  • Jam and preserve player Zuegg launched their BIO line in 2019, consisting of organic jams, organic tea and organic soup, with the organic soup packaged in glass jars and comes in five flavours, pumpkin, carrot and ginger; chickpea and rosemary; tomato, turmeric and cucumber; pea and mint; and artichoke, courgette and potato. The organic jams have 100% fruit content and contain fruit pieces. For now, they are on trial in Esselunga in flavours including wild berries, strawberry, cherry, apricot, red fruit and pomegranate. The addition of these products is expected to help the company support the rising demand for organic products while also leveraging their popularity within organic jams to improve sales in other product categories.
  • In 2019, organic juices player Valfrutta continued to expand its organic nectar range through the new Valfrutta Bio line of juices that are produced without the use of preservatives, additives, GMOs or colourings. Furthermore, products contain only organically grown Italian fruit and wild blueberries from European countries, which are strictly controlled and certified. Currently, the product is offered in six varieties; Italian Pear; Italian Peach; Italian Apricot; Orange, Carrot and Lemon; 100% Italian Orange; and Wild Bilberries.
Prospects And Growth Opportunity
  • Organic soup is a category set to witness substantial growth in the coming years, with a forecast value CAGR of 6.9% for the period 2019-2024. The growth of this category is driven by the high correlation between organic products and high quality, as well as the increasing number of vegans and vegetarians in Italy. The leading players in organic soup, such as Orogel Surgelati, witnessed a positive performance in 2019. Thus, manufacturers in other categories, such as jams are also entering the organic soup category due to its growth potential. With a high level of product availability and a growing health-conscious consumer base, organic soup is expected to remain a critical category over the forecast period 2019-2024, with a forecasted value CAGR of about 7.0% for the period.
  • The high level of popularity of organic jams has led to product launches into this segment, as seen by major jam player Zeugg, launching organic variants to compete in the category. Distribution is also expected to increase, with discounters being the main channel in terms of growth. Overall, organic spreads are expected to see a high level of growth, with a forecast value CAGR of 7.1% for the period 2019-2024.
  • The performance of organic coffee has been low in Italy due to the difference in taste between organic and non-organic blends. As Italian coffee is a blend of coffees from around the world to make the perfect taste, the flavor of the coffee is one of the most significant factors affecting purchasing decisions. Another impediment towards boosting organic coffee is the difficulty in replicating the blend as not all brands of coffee have an organic variant. Nevertheless, some major brands such as Lavazza and Kimbo coffee have launched organic variants of their products to provide a greater level of choice to consumers. With continuous efforts to appeal to consumers, and rising demand from health-conscious consumers, organic coffee is expected to improve growth in the forecast period, with a projected value CAGR of 3.0% for the period 2019-2024.
General Health And Wellness Trends
  • Consumers in Italy are increasingly health-conscious, leading to a growing demand for health and wellness products overall. Within health and wellness packaged food and beverages, organic products witnessed the highest growth. At the same time, free-from products also registered strong performance, supported by growing demand from consumers that have a top priority for health and wellness.
  • New product development was one of the main driving factors for health and wellness products in 2019, with packaged food players launching new lines or using unique ingredients. For example, some players increasingly used legumes to improve the health credentials of their products, with launches of free from meat and meat substitutes products featuring lentils, peas and chickpeas. In addition, Unigrà launched Orasì rice margarine, which is the only margarine made from rice in the Italian market. With product launches and consumer demand for healthy products expected to increase, the need for free-from products is expected to remain strong, with a projected value CAGR of 7.8% for the forecast period 2019-2024.
General Economics And Demographic Landscape

Economy:

  • The economy of Italy is expected to continue to record low levels of growth in 2020, with real GDP increasing by 0.4% post gains of 0.1% in 2019.
  • Private final consumption witnessed an increase of 0.6% in 2019 and an increase of 0.7% is expected in 2020, supported by tax cuts and stabilizing consumer confidence.
  • Unemployment is improving recorded at 10.0% in 2019 and forecasted to dip to 9.7% in 2020. However, this still exceeds the Eurozone average, with nearly a third of young people being without work.
     

 Population demographics:

  • The population of Italy totalled 60.4 million in 2019, representing an increase of 3.5 million since 2000. However, in the coming years, the population is expected to decline, reaching a value of 59.1 million by 2030.
  • Italy is undergoing a significant ageing process, with the second-highest median age behind Germany. The median age of the population in Italy in 2019 was 46.7 years, an increase of 7 years since 2000.
  • Fertility has increased slightly to 1.3 births per female. However, this is still lower than the replacement level. Furthermore, fertility is expected to edge up to about 1.4 births per female by 2030.
     

Income & expenditure:

  • The savings ratio in Italy is recorded at 7.3% of disposable income in 2019, with the indicator expected to dip to 7.1% in 2020.
  • Consumer expenditure per capita in 2019 was recorded at US$20,204, with an increase of 0.9% expected in 2020. For the period 2020-2030, total consumer expenditure will witness a cumulative increase of 6.1%, averaging 0.6% annually for that period.
  • Disposable income per capita was recorded at US$21,384 in 2019 and is expected to increase by 0.6% in 2020. For the period 2020-2030, disposable income is expected to show a cumulative increase of 3.1%, growing at an annual average rate of 0.3%.
Data

Data

Organic Packaged Food And Beverage Data

Data type

Unit

2016

2017

2018

2019

2020

2021

2022

CAGR
(16-19)

CAGR
(20-22)

Health & wellness products consumption

USD million

14,183.0

14,560.9

14,847.0

15,209.7

15,550.9

15,923.0

16,320.5

2.4%

2.4%

Organic packaged food and beverages consumption

USD million

1,232.0

1,336.0

1,439.0

1,553.0

1,662.3

1,774.0

1,883.5

8.0%

6.4%

Organic packaged food consumption

USD million

1,115.9

1,211.1

1,296.5

1,392.4

1,483.6

1,575.0

1,667.8

7.7%

6.0%

Organic beverages consumption

USD million

116.2

124.9

142.5

160.6

178.8

199.1

215.7

11.4%

9.8%

Organic packaged food and beverages consumption as a % of total health & wellness products consumption

%

8.7%

9.2%

9.7%

10.2%

10.7%

11.1%

11.5%

-

-

Economic And Demographic Data

Data type

Unit

2016

2017

2018

2019

2020

2021

2022

Total population

million

60.7

60.6

60.5

60.4

60.3

60.2

60.1

% Middle and upper class of total population

%

31.6

31.7

31.9

31.9

32.0

32.0

32.1

% Population aged 65+

%

22.0%

22.3%

22.6%

22.8%

23.0%

23.3%

23.6%

% Population aged 0-14

%

13.7%

13.5%

13.4%

13.2%

13.0%

12.8%

12.7%

% Population with higher education degrees

%

13.4

14.1

14.7

15.2

15.6

16.1

16.4

Average number of children per household

children

0.4

0.4

0.4

0.3

0.3

0.3

0.3

GDP per capita

USD per capita

31,292.3

32,085.6

32,688.9

33,137.7

32,370.9

32,821.1

33,098.6

Consumer expenditure per capita (US$)

USD per capita

18,988.0

19,535.6

19,917.7

20,186.5

20,353.2

20,504.4

20,680.7

Consumer expenditure per capita on food and non-alcoholic beverages (US$)

USD per capita

2,707.0

2,771.5

2,808.1

2,837.4

2,871.1

2,907.9

2,928.0

Retailer And City Data

Top 5 Cities By Population

Data category

Rank

City/retailer

Population
(millions)

Top cities by population (2019)

1

Milan

5.0

Top cities by population (2019)

2

Rome

4.2

Top cities by population (2019)

3

Naples

3.3

Top cities by population (2019)

4

Turin

1.8

Top cities by population (2019)

5

Palermo

1.0

Top 5 Grocery Retailers By Sales

Data category

Rank

City/retailer

Top grocery retailers by sales (2019)

1

CONAD - Consorzio Nazionale Dettaglianti Scrl

Top grocery retailers by sales (2019)

2

Coop Italia scarl

Top grocery retailers by sales (2019)

3

Selex Gruppo Commerciale SpA

Top grocery retailers by sales (2019)

4

Esselunga SpA

Top grocery retailers by sales (2019)

5

Gruppo VéGé

United States Department Of Agriculture Global Agricultural Trade System Data

Top 5 Export Commodities To Italy

Year

Country

Rank of
Product/Commodity

Product/Commodity

Export Value (US$)

2019

Italy

1

Organic Coffee Roast Not Decaf

29,964

2019

Italy

Total

Total Organics*

29,964

2018

Italy

1

Organic Coffee Roast Not Decaf

59,891

2018

Italy

2

Organic Cherry Tomato Fr/Ch

2,800

2018

Italy

Total

Total Organics*

62,691

2017

Italy

1

Organic Coffee Roast Not Decaf

34,012

2017

Italy

Total

Total Organics*

34,012

2016

Italy

1

Organic Coffee Roast Not Decaf

74,138

2016

Italy

Total

Total Organics*

74,138


Note : Total organics is the sum of all exports to a country within a year
Definitions

Definitions

Term

Definition

Health and Wellness

Health and wellness is the aggregation of organic packaged food and beverages, fortified/functional packaged food and beverages, naturally healthy packaged food and beverages, better for you packaged food and beverages and food intolerance products.

Organic packaged foods and beverages

This category includes packaged food & beverages that are certified organic by an approved certification body. Organic production is based on:

• A system of farming that maintains and replenishes soil fertility without the use of toxic and persistent pesticides and fertilizers.
• Organic food & beverages are minimally processed without artificial ingredients, preservatives or irradiation.
• The use of GMOs (Genetically Modified Organism) is prohibited. “Certified Organic” means the item has been grown according to strict uniform standards that are verified by independent state or private organizations.
• Depending on the country, such products are called ‘organic’, ‘biological’ or ‘ecological’: For organic products to be included under Euromonitor definitions, the organic aspect needs to form part of positioning/marketing of the product. This is an aggregation of organic baby food, bakery, confectionery, dairy, ice cream, oils and fats, ready meals, rice, sauces, dressings and condiments, snack bars, soups, spreads, sweet and savory snacks and other organic food.

Note that fresh food products or individual ingredients are not included in this definition.

Compound annual growth rate (CAGR)

The compound annual growth rate (CAGR) is the average annual growth rate over a specified period of time. For instance, the CAGR consumption of from 2016 – 2019 will be the average growth rates across these three years.

USDA GATS data clarification

The data presented in table 2.4 represents the dollar values of the top 5 organic commodities as well as of the total organic exports of the trade partner for the period 2016-2019 as per the United States Department of Agriculture’s Global Agricultural Trade System, a database consisting of international agricultural, fish, forest and textile products trade statistics dating from the inception of the Harmonized coding system in 1989 to present.

Policy Information

Policy Information

Government Agency(s) / Competent Authority

Authorized Government Agency(s):

European Union (EU) Member States retain the authority to determine additional requirements for production within their country. They can also determine exceptions due to catastrophic circumstances, but cannot restrict access to products in compliance with EU regulations. In addition, the EC delegates most authority for the administration of organic programs to the Member States.

Organic Regulations and/or Standards

Name(s) of Regulation and/or Standard:

The European Union has an Equivalency Agreement with the United States.

General requirements; repeal of previous organic regulations: EC 834/2007 (.pdf in English)

Detailed rules on production, labeling and control including its first amendment on production rules for organic yeast: EC 889/2008 (.pdf in English)amended by (EU) No 1358/2014 (see below).
Regulation (EU) 2019/2164, which amends Regulation (CE) 889/2008, changed some of the lists of inputs allowed in organic agriculture and processing.

Rules concerning imported products: EC1235/2008 (.pdf in English)
Feburary 2013 amendment concerning imported products: (EU) No 125/2013 (.pdf in English)

Rules on organic aquaculture and seaweed production - Amendment in 2009 - implemented in 2010: EC 710/2009 (.pdf in English) 
Organic aquaculture and seaweed production updates (EU) No 1358/2014 effective January 1, 2015.

Detailed rules on organic wine: Regulation No 203/2012 (web; in English)

Date of Implementation: 1992

Regulation and/or Standard Scope:

EU standards cover crop, livestock and processing. Farm and handling plans are required, as well as detailed record keeping and detailed livestock feed standards.  Specific standards are included for aquaculture, seaweed, yeast, bees, and mushrooms. Criteria for determining allowed materials include consistency with the objectives and principles of organic farming, and materials must be of plant, animal, microbial or mineral origin. Synthetic substances, however, may be used when they replicate the natural sources and when they are approved for organic production in the EU.

Imported Products

EU requires that imported organic products meet EU standards. Non-EU organic products must include country of origin labeling if they wish to use the EU organic logo. Use of the EU organic logo is not required for products from outside the EU.

Beginning February 3, 2020, port of entry health authorities will only endorse a certificate of inspection if the certifier issued it prior to export. Certain sections of the certificates (boxes 13, 16, and 17) may be filled in with provisional information, since certifiers can not verify all of the data before the product is exported. The provisional information must be confirmed/updated within 10 days, and before the certificate can be endorsed at the port of entry.

Certification and Accreditation

Certification:

The EC requires organic certification for all those involved in production and handling, including importers. EC requires ALL processing operations to be certified, even if those products are below the 95% threshold for the "Organic" label.

EC delegates the authority for investigations, non compliance, mediation, and testing, as well as reporting, exclusion from organic sale, emergency treatments and appeals to the Member States in accordance with their respective control system plans.

The EC allows private sector standards for the product categories, such as cosmetics and textiles, which are not fully regulated by the EC.  In the EU certifiers (control bodies) can require additional organic crop, livestock and processing standards in association with the use of their certification seal.

List of control authorities and control bodies for equivalence 

Control bodies in the European Union

Accreditation:

Each EU Member State accredits certification bodies.

Additionally, the EU vests the authority for exchanging information on "infringements and irregularities" (enforcement) to certifiers through the Member State control systems as the vehicle to remove non-compliant product from the marketplace.  However, it is not clear how, or when, an organic certificate can or will be revoked.

In addition to the EC organic regulations for certification and accreditation procedures, the requirements of EN 45011 and ISO Guide 65 for accreditation must be met.

Additional Information

Reference Standards:

https://gain.fas.usda.gov/Recent%20GAIN%20Publications/Retail%20Foods_Rome_Italy_12-13-2016.pdf

Additional Information:

http://www.organic-europe.net/country-info.html

USDA’s GAIN Report Italian Food Retail and Distribution Sector Report 2018 (2018)
USDA’s GAIN Report Italy Food Processing Ingredients (2020)
USDA’s GAIN Report Italy Food Service - Hotel Restaurant Institutional (2017) 
USDA’s GAIN Report Italy Retail Foods (2019)
USDA’s GAIN Report Italy Food and Agricultural Import Regulations and Standards - Narrative (2016)
USDA’s GAIN Report Italy Food and Agricultural Import Regulations and Standards - Certification (2020)
USDA’s GAIN Report Food and Agricultural Import Regulations and Standards Country Report (2020)
USDA's GAIN Report Agricultural Biotechnology Annual (2016)
USDA’s GAIN Report Italy Exporter Guide (2019)

USDA’S GAIN Report New EU Organic Regulations for Early 2018 (2017)
USDA’S GAIN Report Electronic Certificate of Inspection Required for EU Organics Trade (2017)
USDA’S GAIN Report Good Prospects for US Organic Exports in the EU (2020)
USDA’S GAIN Report U.S. Organic Food Exporters Set to Double Sales to EU (2019)
USDA’s GAIN Report Plenty of opportunities for U.S. organics in the EU market (2015)
USDA’s GAIN Report Food and Agricultural Import Regulations and Standards Country Report (2020)
USDA’s GAIN Report EU Food and Agricultural Import Regulations and Standards - Certification (2020)
USDA’S GAIN Report EU-28 Food and Agricultural Import Regulations and Standards - Narrative (2017)
USDA’s GAIN Report EU-28 EU-U.S. Organic Trade Update - January 2014