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Quick Stats

Quick Stats

Organics Dashboard From Passport

  • Mondelez International Inc. leads · Organic packaged food and beverages in the UK with a value share of 7.9% in 2021, followed by Hain Celestial Group Inc., with a share of 5.1% and Yeo Valley Farms (Production) Ltd with a share of 3.0%.
  • While the UK ranks 44th in terms of forecast growth, it is one of the largest markets for organic products, ranking 5th globally in terms of market size.

 

  • Organic products in the UK registered a market size of US$2.1 bn in 2021, contributing about 3.6% of the global demand for organic products globally, with a per capita expenditure of US$31.83.
  • As organic labels are witnessing a rapid increase in importance, the demand for organic products is expected to rise further, with an anticipated forecast value CAGR of 2.4% for the period 2021-2026.
Qualitative Analysis

Qualitative Analysis

Quick Facts
  • Organic packaged food and beverages in the UK registered a value growth of 2.8% in 2021, reaching a market size of US$2.1 bn.  
  • Growth in organic beverages was led by organic tea, which registered a value increase of 10.6% in 2021. 
  • Growth in organic packaged food was driven largely by organic chocolate confectionery, which rose 4.5% in 2021.
Market Trends
  • Categories like reduced sugar and naturally healthy beverages are becoming more appealing to the growing segment of consumers pursuing healthier lifestyles and wishing to avoid artificial ingredients in their diets. Adoption of free from packaged food also increased due to the rising number of people with food intolerances, as well as more people choosing to exclude certain elements from their diet, such as gluten or meat. Fortified/functional beverages also continued to see strong growth in 2021. 
  • Covid-19 further fuelled the existing trend of higher concern for health and wellbeing among consumers. Due to Covid-19 related restrictions and the notable shift to working from home, consumers have started to look for convenient alternatives with immune system bossing properties, such as soft drinks with added vitamins and minerals. Some consumers continued to look for products to keep them awake, such as fortified/functional energy drinks, while others included fortified/functional bottled water and sports drinks in their sports routines at home.
Competitive Landscape
  • Organic packaged food in the United Kingdom is led by Mondelez International Inc with a value share of 9.2% in 2021, followed by The Hain Celestial Group Inc with 6.2% and Yeo Valley Farms (Production) Ltd with 3.7%.
  • Organic beverages market is dominated by Unilever Group which has almost double the market share of its nearest competitor – the company accounted for 13.2% of the market in 2021, followed by Belvoir Farm Drinks Ltd with a share of 7.5% and Associated British Food Plc at 5.3%. 
  • Mondelez International Inc once again ranked as overall market leader for organic packaged food and beverages in 2021, a position the company has now held since 2012. Mondelez is refreshing the packaging of its organic chocolate confectionery brand Green & Black’s to highlight its high quality and commitment to sustainably sourced cocoa. Five of its dark tablets will be registered under The Vegan Society, while the new packaging will reflect the cocoa intensity scale in order to help consumers easily choose the taste they prefer. This taps into the indulgence trend, which was particularly prominent during lockdown restrictions, when consumers switched to premium chocolate in order to treat themselves.
  • While the market leaders continue to see share gradually eroded as more new brands enter the market, seventh ranked organic packaged food brand Meridian saw share rise to 1.4% in 2021 versus 0.9% in 2018.
Prospects And Growth Opportunity
  • Consumers are increasingly cautious about their health and wellbeing post-pandemic, which will lead them to move away from regular soft drinks, particularly carbonates. However, as carbonates are also commonly consumed as a way of self-indulging, a good proportion of consumers do not want to stop their consumption completely, which is likely to lead them to switch to Better for you reduced sugar carbonates.
  • The new HFSS legislation set to come into effect from October 2022 imposing restrictions on the promotion of products high in fat, sugar, and salt, will benefit reduced sugar variants. Moreover, brands themselves are likely to boost their investments in reduced sugar variants as a result of the legislation. Meanwhile, consumers seeking to lead healthier lifestyles will naturally give preference to reduced sugar variants as the legislation makes them more aware of the sugar content of beverages.
  • With consumers switching to decaffeinated options, better for you reduced caffeine hot drinks are expected to be a key driver of growth in black tea over the forecast period. Manufacturers have been increasingly willing to expand their decaffeinated ranges under their existing brands, making such products part of their core offering. It is likely that greater availability of reduced caffeine black tea options will be seen across all channels. Consumers are also increasingly interested in fortified/functional teas, as well as naturally healthy fruit/herbal tea, which will create more competition in the market.
General Health And Wellness Trends
  • Health and wellness is set to return to stronger growth rates throughout the forecast period, with increases for both health and wellness beverages and packaged food. The pandemic has strengthened consumers’ need to pursue healthier lifestyles, and this trend is unlikely to slow down in the coming years. 
  • Consumers are increasingly shifting away from sugary, salty, fat-laden products, due to health reasons, and this trend will be further accelerated by legislative measures in the UK, such as the continuation of the Soft Drinks Industry Levy and the implementation of HFSS from October 2022. Better for you reduced sugar beverages and packaged food, and reduced salt and fat packaged food will become more and more appealing. Both measures are likely to result in higher unit prices for regular soft drinks and certain packaged foods, consequently increasing the search for reduced sugar, salt, and fat variants. 
  • More naturally healthy products are also likely to emerge, using a range of exotic fruits and plant-based ingredients, and organic products are also set to continue to perform well, not only due to their healthier composition, but also due to the sustainable practices behind their production, which are likely to become even more relevant for consumers in the future. Fortified/functional soft drinks will also likely continue to see positive performance, as consumers view the consumption of soft drinks with added vitamins and minerals to boost their immune system.
General Economics And Demographic Landscape

Economy

  • Following a strong rebound in 2021, the United Kingdom economy is set to continue picking up steam in 2022, with real GDP growth forecast at 4.5%. 
  • Private final consumption witnessed an increase of 9.6% in 2021, with a growth of 4.5% expected in 2022. 
  • The consumer price index stood at 2.6% in 2021 and is expected to accelerate to 4.5% in 2022.

 

Population demographics: 

  • The population of the United Kingdom stood at 61.1 million in 2021 and is expected to rise to 67.9 million by 2025.
  • Population between the age of 0 to 14 is set to gradually decline from 17.8 million in 2021 to 17 million in 2025, whereas population aged 65+ is set to increase from 18.8 million to 19.8 million over the same period. 
  • The median age in 2021 was recorded at an all-time high 40.5 years. This is further expected to increase to 42.3 years by 2030. 

 

Income & expenditure

  • The savings ratio in the United Kingdom was 14.9% of disposable income in 2021, and it forecast to rise to 15.4% through 2023.
  • Consumer expenditure per capita climbed to US$27,411 in 2021 and is expected to reach US$30,308 in 2025.
  • After stagnating in 2020, disposable income per capita grew by 10% to hit US$32,649 in 2021. Disposable income per capita is projected to show 2.7% CAGR 2021-25.
Data

Data

Organic Packaged Food And Beverage Data

Data type

Unit

2018

2019

2020

2021

2022

2023

2024

2025

CAGR
(18-21)

CAGR
(22-25)

Health & wellness products consumption [1]

USD million

28,304.6

29,418.7

31,466.5

31,754.5

32,250.6

32,666.0

33,273.5

34,139.0

3.9%

1.9%

Organic packaged food and beverages consumption

USD million

1,808.8

1,903.5

2,077.9

2,136.9

2,176.7

2,214.2

2,262.2

2,331.7

5.7%

2.3%

Organic packaged food consumption

USD million

1,519.4

1,588.9

1,715.9

1,749.2

1,769.9

1,788.3

1,817.3

1,864.5

4.8%

1.8%

Organic beverages consumption

USD million

289.4

314.6

362

387.7

406.8

425.9

444.8

467.2

10.2%

4.7%

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

%

6.4%

6.5%

6.6%

6.7%

6.7%

6.8%

6.8%

6.8%

-

-

 

[1] Health and Wellness Definition: 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. The above definition and more can be referenced from the definitions table at the end of the report.

Economic And Demographic Data

Data type

Unit

2018

2019

2020

2021

2022

2023

2024

 

2025

Total population

Million

66.2

66.6

67

67.1

67.3

67.5

67.7

67.9

% Middle and upper class of total population

%

34.1

34.1

34.1

34.1

34.1

34.1

34.0

34.0

% Population aged 65+

%

18.2

18.4

18.6

18.8

19.0

19.3

19.5

19.8

% Population aged 0-14

%

17.9

17.9

17.9

17.8

17.6

17.4

17.2

17.0

% Population with higher education degrees

%

30.6

30.9

31.2

31.4

31.6

31.8

31.9

32.0

Average number of children per household

children

0.5

0.5

0.5

0.5

0.5

0.5

0.5

0.5

GDP per capita

USD per capita

44,448.0

45,767.2

43,326.1

46,637.9

48,599.3

49,640.3

50,467.4

51,162.7

Consumer expenditure per capita (US$)

USD per capita

27,368.7

27,873.6

25,241.9

27,410.7

28,660.2

29,318.4

29,859.7

30,307.6

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

USD per capita

2,177.5

2,214.1

2,362.7

2,271.9

2,373.2

2,400.1

2,410.6

2,430.6

 

Retailer And City Data

Top 5 Cities By Population

Data category

Rank

City/retailer

Population
(millions)

Top cities by population (2021)

1

London

12.3

Top cities by population (2021)

2

Birmingham

3.5

Top cities by population (2021)

3

Manchester

3.4

Top cities by population (2021)

4

Leeds

2.7

Top cities by population (2021)

5

Glasgow

1.8

 

Top 5 Grocery Retailers By Sales

Data category

Rank

City/retailer

Top grocery retailers by sales (2021)

1

Tesco Plc

Top grocery retailers by sales (2021)

2

J Sainsbury Plc

Top grocery retailers by sales (2021)

3

Walmart Inc

Top grocery retailers by sales (2021)

4

Wm Morrison Supermarkets Plc

Top grocery retailers by sales (2021)

5

Aldi Group

 

United States Department Of Agriculture Global Agricultural Trade System Data

Top 5 Export Commodities To The United Kingdom

Year

Country

Rank of
Product/Commodity

Product/Commodity

Export Value (US$)

2021

United Kingdom

1

Organic Vinegar and Substitutes

2,809,470

2021

United Kingdom

2

Organic Apples Fresh

1,119,791

2021

United Kingdom

3

Organic Peas Fr/Ch

792,893

2021

United Kingdom

4

Organic Coffee Roast Not Decaf

184,503

2021

United Kingdom

5

Organic Berries Fresh

109,877

2021

United Kingdom

Total

Total Organics*

5,143,834

2020

United Kingdom

1

Organic Vinegar and Substitutes

4,185,600

2020

United Kingdom

2

Organic Apples Fresh

1,508,539

2020

United Kingdom

3

Organic Berries Fresh

881,018

2020

United Kingdom

4

Organic Strawberries Fresh

348,263

2020

United Kingdom

5

Organic Peas Fr/Ch

316,144

2020

United Kingdom

Total

Total Organics*

7,665,807

2019

United Kingdom

1

Organic Vinegar and Substitutes

2,033,973

2019

United Kingdom

2

Organic Grapes Fresh

981,159

2019

United Kingdom

3

Organic Peas Fr/Ch

917,748

2019

United Kingdom

4

Organic Coffee Roast Not Decaf

776,522

2019

United Kingdom

5

Organic Berries Fresh

688,456

2019

United Kingdom

Total

Total Organics*

6,553,031

2018

United Kingdom

1

Organic Vinegar and Substitutes

6,706,709

2018

United Kingdom

2

Organic Apples Fresh

4,384,451

2018

United Kingdom

3

Organic Cherries Fresh

808,465

2018

United Kingdom

4

Organic Peas Fr/Ch

634,842

2018

United Kingdom

5

Organic Berries Fresh

532,744

2018

United Kingdom

Total

Total Organics*

14,575,835

 

Note : Total organics is the sum of all exports in a particular 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 2018 – 2021 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 2018-2021 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):

The United Kingdom left the European Union January 31, 2020, and completed its exit from the EU December 31, 2021.

Agency(s) Contact Information:

1. 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.

A. Business Link

Description: Provides information on preparing to import organic produce 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, 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.)

2. HM Revenues & Customs

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@food.gov.uk
FSA in Wales:
E-mail: walesadminteam@food.gov.uk
FSA in Northern Ireland:
E-mail: infofsani@food.gov.uk

Food Standards Scotland (FSS) is the public sector food body for Scotland:
Contact Food Standards Scotland

A.    Imported food

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
Telephone: 44-20-7891-3313
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 United Kingdom has an Equivalency Arrangement with the United States.

In Great Britain the following regulations apply:

Organic food: labeling and advertising rules  
Foods can be labeled as “organic” if at least 95% of the product’s agricultural ingredients are organic and all other ingredients, additives and processing aids are listed as permitted within the organic regulations. Other terms related to organic production methods are synonymous with organic include: bio, eco, organically grown, organically produced, grown or produced using organic principles and grown or produced using organic methods.  The labeling rules also apply to company names, or brand names.If the product has less than 95% organic ingredients, organic claims can be used only in the ingredients list and does not allow reference to organic in the product name or description.  More.

Date of Implementation of equivalence arrangement: January 1, 2021

Regulation and/or Standard Scope:

The United States (U.S.) has an equivalence arrangement with the United Kingdom (UK), which includes Great Britain (England, Scotland, Wales) and Northern Ireland. This means that organic products certified to either the USDA or UK organic standards may be labelled and sold as organic in both countries, as long as the products meet the terms of the arrangement. The equivalence arrangement is limited to organic products that have been either raised within the U.S. or UK, or products for which the final processing or packaging occurs within the U.S. or UK. This includes products processed or packaged in the U.S. or UK that contain organic ingredients from third countries that have been certified to the USDA or UK organic standards.
Allowed product categories: Crops, Wild Crops, Livestock, Processed Products.

Imported Products

Starting January 1, 2021: All organic goods imported from non-EU countries must continue to have a valid Certificate of Inspection (COI). There is a new UK import process for all USDA organic products traded under the arrangement. Different documentation is required depending on whether the USDA organic product is exported to the UK-Great Britain (England, Scotland, Wales) or the UK-Northern Ireland.

USDA organic products exported to the UK-Great Britain: A USDA-accredited certifying agent must issue a paper Certificate of Inspection (COI) before the products leave the U.S. and send to the UK Port Health Authority (PHA)/Local Authority (LA), usually by courier. The PHA/LA can endorse a copy if the original hasn’t arrived in order to clear the goods, though the original will need to be endorsed within 10 working days for the consignment to be sold on as organic. To obtain the GB COI, send an email with your request to Organic.Imports@defra.gov.uk. The NOP will link to the GB Certificate of Inspection as soon as it is available.

USDA organic products exported to the UK-Northern Ireland: Pursuant to the Northern Ireland/Ireland Protocol, the EU organic regulations will remain applicable in Northern Ireland. Exports from the U.S. to Northern Ireland will continue to adhere to the EU procedures and will continue to require an EU COI. A USDA-accredited certifying agent must complete an electronic Certificate of Inspection (COI) through the European Union’s Trade Control and Expert System (TRACES) before the product leaves the U.S. Certain edits to the COI may only be made within 10 days of issuing the original COI.

U.S. organic businesses that encounter issues with USDA organic exports arriving in the UK are encouraged to work with their UK importer. You may also email the UK authorities at Organic.Imports@defra.gov.uk

Guidance on importing and exporting organic foods 

Certification and Accreditation

Certification:

The UK requires organic certification for all those involved in production and handling, including importers. 

Control bodies in the United Kingdom

Accreditation:

The UK approves certification bodies.

Additional Information

U.S. International Trade Administration

USDA’s GAIN Report United Kingdom Exporter Guide (2021)
USDA’s GAIN Report United Kingdom Food Processing Ingredients (2022)
USDA’s GAIN Report United Kingdom Food Service Hotel Restaurant Institutional (2021)
USDA’s GAIN Report United Kingdom Retail Foods Report (2021)

USDA’s GAIN Report Food and Agricultural Import Regulations and Standards Export Certificate Report (2021)
USDA’s GAIN Report Food and Agricultural Import Regulations and Standards Country Report (2022)