- The total market size for organic packaged food and beverages in the UK in 2017 is US$1,558.4mn, making it the 6th largest market in the world by value.
- Per capita spending on organic packaged food and beverages in the UK is US$23.68, which ranks as the 17th largest spending per capita in the world.
- The largest company by sales in organic packaged food and beverages is Mondelez International Inc, which maintains 9.1% of total sales, followed by Hipp GmbH & Co Vertrieb KG and Hain Celestial Group Inc.
- Organic packaged food and beverages in the UK will see slow year-on-year growth of close to 2% in 2018. This is slower than the rest of the Western Europe region, which will experience 5%-6%% year-on-year growth in 2018.
- The UK maintains a market size for organic packaged food and beverages of US$1,558.4mn in 2017, which is 3.9% of global category sales.
- Within the Western Europe region, Germany, France and Italy surpass the UK in total value sales of organic packaged food and beverages.
- Despite the large market size, the UK will experience slow forecast growth of sales of organic packaged food and beverages, at a 1.7% CAGR from 2017–2022.
QUALITATIVE ANALYSIS
Quick Facts
- The total market size for organic packaged food and beverages in the UK in 2017 is US$1,558.4mn, making it the 6th largest market in the world by value.
- The organic packaged food and beverage landscape in the UK is highly fragmented and competitive, with no single company holding more than 9.1% market share.
- While many UK consumers are aware of and interested in organic packaged food, organic beverages remains somewhat of a niche category.
Market Trends
- Organic packaged food and beverages are premium-priced in the UK, and are widely available across most retail outlets, including supermarkets, discounters, and convenience stores.
- Organic packaged food and beverages sales value growth was essentially stagnant in 2017 following several years of modest growth.
- Organic soup and organic confectionary sales values have posted healthy growth rates in recent years, but several categories have seen sales values decline, including organic bread and organic edible oil.
Competitive Landscape
- The organic packaged food and beverage landscape in the UK is highly fragmented and competitive. No single company currently holds more than 9.1% market share.
- Mondelez International is the market leader with 9.1% value share, followed by Hipp GmbH & Co Vertrieg KG with 6.3%.
- UK consumers are increasingly concerned about the provenance of their food and beverages, and are looking for locally produced options. Domestic organic food and beverage companies are projected to grow their market shares in coming years.
Prospects and Growth Opportunity
- Sales value of organic food and beverages is projected to grow slowly in coming years as the market continues to mature.
- The outcome of Brexit negotiations will affect growth prospects, as imports from European countries could decline after the UK leaves the EU.
- Organic baby food and organic concentrates are projected to post the highest sales value growth rates in coming years.
General Health & Wellness Trends
- Sales of health and wellness products in the UK have recorded slow but steady growth in recent years, driven by consumers’ increasing health consciousness and government and media efforts to promote healthier lifestyles in the face of rising obesity and diabetes rates.
- Consumers are increasingly opting for naturally healthy packaged food and beverages over other types of products, particularly those that contain high levels of sugar or artificial sweeteners.
General Economic & Demographic Landscape
Economy:
- In 2017 real GDP growth was 1.5% in the UK, and 1.2% growth is expected in 2018.
- Due to uncertainties surrounding Brexit, investment will slow and consumer spending will weaken in 2018.
- Unemployment was 4.5% in 2017, and that figure is projected to rise to 4.9% in 2018.
Population demographics:
- The population of the UK was 65.8 million in 2017 and is projected to reach 69.5 million in 2030.
- The UK’s population is aging: In 2017 the median age was 40.1 years, which was 2.6 years over the median age in 2000.
- The portion of the population over age 65 is projected to rise to 22.0% by 2030, which will put strains on government finances and the economy.
Income & expenditure:
- Per capita disposable income in 2017 was US$25,503, and total disposable income is projected to grow at an annual average rate of 1.9% through 2030.
- Total consumer expenditure is projected to grow at an average annual rate of 1.7% through 2030.
QUANTITATIVE ANALYSIS
Organic packaged food & beverage data
|
Data type |
Unit |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
CAGR |
CAGR |
|
|
|
|
|
|
|
|
|
|
|
|
|
Health & wellness products consumption |
USD million |
25,337.6 |
25,857.2 |
26,414.6 |
27,155.2 |
28,283.8 |
29,044.8 |
29,868.3 |
2.3% |
3.2% |
|
Organic packaged food and beverages consumption |
USD million |
1,462.1 |
1,490.4 |
1,518.8 |
1,558.4 |
1,592.8 |
1,625.1 |
1,652.3 |
2.1% |
2.0% |
|
Organic packaged food consumption |
USD million |
1,245.4 |
1,267.1 |
1,291.9 |
1,326.3 |
1,354.9 |
1,384.5 |
1,409.5 |
2.1% |
2.0% |
|
Organic beverages consumption |
USD million |
216.7 |
223.4 |
226.8 |
232.0 |
237.9 |
240.7 |
242.8 |
2.3% |
1.5% |
|
Organic packaged food and beverages consumption as a % of total health & wellness products consumption |
% |
0.1 |
0.1 |
0.1 |
0.1 |
0.1 |
0.1 |
0.1 |
- |
- |
Economic & demographic data
|
Data type |
Unit |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
|
|
|
|
|
|
|
|
|
|
|
Total population |
million |
64.4 |
64.9 |
65.4 |
65.8 |
66.2 |
66.6 |
66.9 |
|
% Middle and upper class of total population |
% |
0.2 |
0.2 |
0.2 |
0.2 |
0.2 |
0.2 |
0.2 |
|
% Population aged 65+ |
% |
0.2 |
0.2 |
0.2 |
0.2 |
0.2 |
0.2 |
0.2 |
|
% Population aged 0-14 |
% |
0.2 |
0.2 |
0.2 |
0.2 |
0.2 |
0.2 |
0.2 |
|
% Population with higher education degrees |
% |
0.3 |
0.3 |
0.3 |
0.3 |
0.3 |
0.3 |
0.3 |
|
Average number of children per household |
children |
0.5 |
0.5 |
0.5 |
0.5 |
0.5 |
0.5 |
0.5 |
|
GDP per capita |
USD per capita |
36,766.2 |
37,495.1 |
38,630.1 |
39,724.6 |
40,047.0 |
40,352.8 |
40,705.6 |
|
Consumer expenditure per capita (US$) |
USD per capita |
22,360.4 |
22,762.5 |
23,419.2 |
24,230.4 |
24,457.6 |
24,665.4 |
24,913.2 |
|
Consumer expenditure per capita on food and non-alcoholic beverages (US$) |
USD per capita |
1,951.6 |
1,902.2 |
1,900.4 |
1,924.4 |
1,913.5 |
1,911.7 |
1,921.9 |
|
Data category |
Rank |
City/retailer |
Population |
|
|
|
|
|
|
Top cities by population (2017) |
1 |
London |
16.3 |
|
Top cities by population (2017) |
2 |
Birmingham |
3.4 |
|
Top cities by population (2017) |
3 |
Manchester |
2.8 |
|
Top cities by population (2017) |
4 |
Liverpool |
2.5 |
|
Top cities by population (2017) |
5 |
Leeds |
2.3 |
|
Top grocery retailers by sales (2017) |
1 |
Sainsbury's |
- |
|
Top grocery retailers by sales (2017) |
2 |
Asda |
- |
|
Top grocery retailers by sales (2017) |
3 |
Tesco |
- |
|
Top grocery retailers by sales (2017) |
4 |
Tesco Extra |
- |
|
Top grocery retailers by sales (2017) |
5 |
Morrisons |
- |
USDA GATS data
|
Rank |
2017 |
2016 |
2015 |
2014 |
|---|---|---|---|---|
| Export Value (US$, thousands) | ||||
|
1 |
Apples 479.0 |
Apples 1,762.0 |
Grapes 1,353.0 |
Grapes 4,700.0 |
|
2 |
Strawberries 39.0 |
Strawberries 94.0 |
Blueberries 1,289.0 |
Strawberries 1,917.0 |
|
3 |
Coffee Roast 272.0 |
Peppers |
Coffee Roast 516.0 |
Apples 1,228.0 |
|
4 |
Grapes |
Blueberries |
Berries 170.0 |
Tomato Sauce 475.0 |
|
5 |
Blueberries |
Grapes 34.0 |
Peppers 118.0 |
Coffee Roast 403.0 |
|
Total |
4,738.0 |
3,290.0 |
3,646.0 |
9,499.0 |
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.
Agency(s) Contact Information:
United Kindom's Department for Environment Food and Rural Affairs (DEFRA)
Organic Team Import Section
Phone: 020 7238 5777 (UK)
E-mail: organic.imports@defra.gsi.gov.uk
Description: Provides the latest news on organic imports. Includes information on products imported from outside the EU as well as inside the EU, a guide on Implementing Regulation 1235/2008, a list of products imported from third countries where the control body has been recognized as applying equivalent standards and products imported from other third countries under a Member State Authorization.
Description: Provides information on preparing to import organic produce to the EU and to the UK and includes sections on preparing to import organic produce, applying for organic import authorization, certificate of Inspection and other import documents for organic produce, the 2009 change to the organic import regime, other regulatory requirements affecting organic importers, transport and organic imports as well as certificates of conformity and the Procedure for Electronic Application for Certificates (PEACH.)
Description: information pack created as a basic guide to anyone wishing to import or export goods. It acts as a guide to help anyone get started on importing and / or exporting, and also provides a better understanding of the procedures involved in these activities.
3. Food Standards Agency
Telephone: 20 7276 8829,
E-mail: helpline@foodstandards.gsi.gov.uk
Description: Includes information on what to do before importing, the banned or restricted products, advice about imports, the different legislation for importing food.
4. US Embassy - Office of Agricultural Affairs
Contact: Julie Vasquez-Nicholson
Agriculture Marketing Specialist
Telephone: 44-207-894-0464
Email: aglondon@fas.usda.gov
Description: This office represents the interests of U.S. agriculture and promote the sale of American food and agricultural, fisheries and forestry products in England, Scotland, Wales and Northern Ireland and provides trade services both for local companies seeking U.S. products and for U.S. companies wishing to develop markets in the UK.
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).
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:
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 Requirements
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.
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
Additional Information:
http://www.organic-europe.net/country-info.html
USDA’s GAIN Report United Kingdom Exporter Guide (2017)
USDA’s GAIN Report United Kingdom Food Processing Ingredients (2019)
USDA’s GAIN Report United Kingdom Food Service Hotel Restaurant Institutional (2019)
USDA’s GAIN Report United Kingdom Retail Foods Report (2019)
USDA’s GAIN Report UK Supermarket Chain Profiles (2016)
USDA’s GAIN Report Key Retail Outlets 2016 (2016)
USDA’s GAIN Report United Kingdom Food and Agricultural Import Regulations and Standards - Narrative (2016)
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 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 EU-28 Food and Agricultural Import Regulations and Standards - Certification (2016)
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
