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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 8.0% in 2019, followed by Hain Celestial Group Inc., with a share of 5.3% and Hipp GmbH & Co Vertrieb KG with a share of 4.7%.
  • While the UK ranks 37th 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$1.8 bn in 2019, contributing about 3.9% of the global demand for organic products globally, with a per capita expenditure of US$27.62.
  • 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 3.3% for the period 2019-2024.
Qualitative Analysis

Qualitative Analysis

Quick Facts
  • Organic packaged food and beverages in the UK registered a value growth of about 4.9% over the 2018-2019 period, reaching a market size of US$1.8 bn in 2019.
  • Growth in organic packaged food was led by organic breakfast cereals, which registered a value increase of 11.0% in 2019.
  • Organic green tea led the growth in organic beverages, with current value growth of 14.0% in 2019.
Market Trends
  • Organic claims are prevailing among manufacturers as a positioning statement due to rising consumers' confidence in organic labels. Additionally, environmental concerns and product packaging became increasingly essential factors influencing consumers’ purchase decisions. Recent media focus on the detrimental effects of plastic packaging emphasized in tea bags helped fuel growth for organic tea products, with consumers looking for not only a premium blend but also for products packaged in an environmentally friendly format. Brands using organic and plastic-free tea bags are helping drive growth for organic tea, which is also supported by the introduction of new flavors and premium formats.
  • Organic packaged food is gaining momentum among health-conscious consumers. Additionally, consumer concerns on the production processes of food products and the rising priority on animal welfare have led to organic products becoming notably popular, supported by the absence of synthetic additives, bioengineered genes and petroleum or sludge-based fertilizers.
  • In categories such as organic dairy, demand is increasing due to associated health benefits compared to non-organic variants. For example, organic dairy products are perceived to be healthier as they contain higher levels of omega-3 fatty acids and CLA, more antioxidants, and more vitamins. With health and environmental concerns expected to remain over the coming years, there is likely to be an increasing shift in preference from conventional to organic product variants within several daily staple categories.
Competitive Landscape
  • Organic packaged food is led by Mondelez’s brand Green & Black, with a value share of 9.1% in 2019. The brand’s share is a result of the popularity of its organic confectionery and ice cream offerings, with the brand extending its range to offer pralines and countlines in an attempt to provide a more luxurious alternative. It is worth noting that, though the cocoa used by Green & Black is sourced through the Cocoa Life programme, which aims to empower cocoa farmers, the product is not organic. This misconception of associating Green and Black as an organic product is confusing to consumers, however, the Cocoa Life seal corresponds to ethical sourcing and thus, consumers trust the ingredients.
  • One category witnessing substantial competition is organic baby food. As organic products are perceived healthier, the demand for organic baby food is continually increasing. Several private labels have launched organic baby food offerings in an attempt to provide premium quality products at more affordable prices, with brands like Aldi, Lidl and Sainsbury's launching their offerings in baby food in 2018. Other baby food players also launched organic products, with SMA nutrition launching its first organic range Organix of savoury protein snacks in 2018.
  • As organic and ethical claims have increased in popularity among consumers, there is an increasing focus from manufacturers, particularly within soft drinks, to leverage these labels as a positioning statement. As a result, several manufacturers are investing in ethical and organic claims to provide product differentiation. For instance, Whole Earth expanded its carbonates range with Organic Sparkling Elderflower Drink, Organic Lemonade and Organic Ginger, while Karma Cola is challenging the existing cola players with its organic and fair trade soft drinks, publishing all of its ingredients on the pack.
Prospects And Growth Opportunity
  • Consumers in the UK are increasingly adopting organic products, paying a premium for high quality and associated health benefits. In categories such as dairy products and baby food, demand is already witnessing a rapid increase. With the adoption of organic products expected to increase in other categories, global manufacturers are beginning to introduce organic variants of their products in order to cater to the rising consumer demand while also leveraging their brand awareness. Some examples include Cheerios and Nesquik, as well as W.K. Kellogg Organic Wholegrain Wheats. Over the forecast period 2019-2024, this pattern is expected to continue, as more significant brands introduce organic offerings to retain or boost market share.
  • Offerings under private retailer labels are able to garner share by providing high quality at a more affordable price, leading to an avenue for private label products to attract consumers. With more retailers like Aldi and Lidl expected to launch private label products in high potential categories such as organic coffee, there is immense scope for private label products to replace branded products as the primary consumer choice over the forecast period 2019-2024.
  • Sales of organic products have witnessed a rise across specific channels in the UK, namely online retailing. With an increasing number of consumers in the UK leading active and busy lifestyles, shopping is witnessing a transition, with consumers carrying out the majority of their grocery shopping online. This has provided an opportunity for organic manufacturers to highlight their labels on the online platform and promote their organic products. Another channel that has gained traction is the health food/beverage stores, which provide advice and recommendation. Overall, with more consumers looking to follow healthy consumption, while also appreciating convenience, these channels are expected to grow further over the forecast period 2019-2024.
General Health And Wellness Trends
  • Consumers in the United Kingdom are embracing a more holistic approach to health and wellness consumption, with an increasing focus on product quality, provenance, and sustainability credentials in food and beverage products. As consumers become more health-conscious, demand is fueled for plant-based foods, organic drinks and functional products, enabling health and wellness products to retain a strong position and register a solid growth of 4.0% in 2019.
  • In terms of specific products, the rising media coverage over the detrimental effects of sugar on health has led to consumers gradually shifting from traditional soft drinks towards better for you (BFY), low sugar versions as well as to fortified/functional soft drinks. Furthermore, with a levy on soft drinks, this change in preference is expected to continue, boosting demand for healthier beverages over the forecast period 2019-2024.
General Economics And Demographic Landscape

Economy:

  • The economy of the United Kingdom is witnessing a slow performance with real GDP growing by 1.0% in 2019 post gains of 1.4% in 2018.
  • Private final consumption witnessed an increase of 0.9% in 2019, with a growth of 0.7% predicted in 2020. One factor responsible for this deceleration in consumption growth is the slowdown in employment gains.
  • The pace of the economy is expected to improve over the coming years, with real GDP recording growth of 1.4% in 2021, post which growth is expected to strengthen gradually, reaching 1.5% per year by 2027.
     

 Population demographics:

  • The population of the United Kingdom amounted to 66.6 million in 2019, a significant increase from the 2000 total of 58.8 million. The number is expected to continue to rise gradually, reaching 69.7 million years by 2030.
  • The median age in 2019 was 40.2 years, increasing by 2.7 years since 2000. The fertility rate recorded at 1.7 births per female in 2019 is expected to grow to 1.8 births per female by 2030.
  • The proportion of the population over the age of 65 years is expected to increase from its 2019 level of 18.4% to 21.9% by 2030.
     

Income & expenditure:

  • The savings ratio in the United Kingdom was recorded at 4.8% of disposable income, with the rate expected to grow to 5.0% in 2020. However, a drop-in saving is expected, as consumers adjust to higher inflation and lower-income flows.
  • Consumer expenditure per capita was recorded at US$26,228 in 2019, with an increase of 0.2% predicted for 2020. For the period 2020-2030, total consumer expenditure is expected to grow by a cumulative value of 14.5%, averaging 1.4% annually.
  • Disposable income per capita was registered at US$27,785 in 2019. In 2020, the indicator is expected to grow by 0.3%. For the period 2020-2030, disposable income is expected to increase by 14.9%, averaging 1.4% annually.
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

24,408.4

25,337.7

26,476.0

27,538.9

28,632.9

29,736.0

30,930.5

4.1%

3.9%

Organic packaged food and beverages consumption

USD million

1,598.6

1,674.1

1,755.1

1,841.0

1,911.7

1,981.6

2,043.3

4.8%

3.4%

Organic packaged food consumption

USD million

1,362.6

1,421.1

1,487.0

1,556.4

1,611.7

1,665.8

1,716.7

4.5%

3.2%

Organic beverages consumption

USD million

236.0

252.9

268.1

284.6

300.0

315.8

326.6

6.4%

4.3%

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

%

6.5%

6.6%

6.6%

6.7%

6.7%

6.7%

6.6%

-

-

Economic And Demographic Data

Data type

Unit

2016

2017

2018

2019

2020

2021

2022

Total population

million

65.4

65.8

66.3

66.6

67.0

67.3

67.6

% Middle and upper class of total population

%

34.2

34.2

34.1

34.1

34.1

34.0

34.0

% Population aged 65+

%

17.9%

18.1%

18.2%

18.4%

18.6%

18.9%

19.1%

% Population aged 0-14

%

17.7%

17.8%

17.9%

17.9%

17.9%

17.9%

17.8%

% Population with higher education degrees

%

29.9

30.3

30.6

30.9

31.2

31.4

31.6

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

38,952.3

40,153.8

41,292.4

42,412.6

41,785.1

42,280.6

42,677.4

Consumer expenditure per capita (US$)

USD per capita

24,185.8

24,932.5

25,817.3

26,317.5

26,355.3

26,427.5

26,649.3

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

USD per capita

1,859.1

1,948.7

2,008.1

2,025.2

2,051.4

2,073.9

2,081.4

Retailer And City Data

Top 5 Cities By Population

Data category

Rank

City/retailer

Population
(millions)

Top cities by population (2019)

1

London

12.1

Top cities by population (2019)

2

Birmingham

3.5

Top cities by population (2019)

3

Manchester

3.4

Top cities by population (2019)

4

Leeds

2.7

Top cities by population (2019)

5

Glasgow

1.8

Top 5 Grocery Retailers By Sales

Data category

Rank

City/retailer

Top grocery retailers by sales (2019)

1

Tesco Plc

Top grocery retailers by sales (2019)

2

J Sainsbury Plc

Top grocery retailers by sales (2019)

3

Walmart Inc

Top grocery retailers by sales (2019)

4

Wm Morrison Supermarkets Plc

Top grocery retailers by sales (2019)

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$)

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

2017

United Kingdom

1

Organic Lettuce Not Head Fr/Ch

2,754,130

2017

United Kingdom

2

Organic Apples Fresh

673,209

2017

United Kingdom

3

Organic Peas Fr/Ch

570,255

2017

United Kingdom

4

Organic Coffee Roast Not Decaf

326,477

2017

United Kingdom

5

Organic Onion Sets Fr/Ch

287,562

2017

United Kingdom

Total

Total Organics*

5,138,083

2016

United Kingdom

1

Organic Apples Fresh

1,762,333

2016

United Kingdom

2

Organic Onion Sets Fr/Ch

756,736

2016

United Kingdom

3

Organic Coffee Roast Not Decaf

203,934

2016

United Kingdom

4

Organic Tomato Sauce Ex Ketchp

114,731

2016

United Kingdom

5

Organic Lettuce Not Head Fr/Ch

103,560

2016

United Kingdom

Total

Total Organics*

3,288,272


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 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):

The United Kingdom left the European Union January 31, 2020. 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.

A.    Business Link

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.)

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@foodstandards.gsi.gov.uk

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
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: 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.

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

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

USDA’s GAIN Report United Kingdom Exporter Guide (2020)
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 Food and Agricultural Import Regulations and Standards Export Certificate Report (2020)
USDA’s GAIN Report Food and Agricultural Import Regulations and Standards Country Report (2020)

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