• 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 37^th in terms of forecast growth, it is one of the largest markets for organic products, ranking 5^th 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.

• 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.

• 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.

• 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.

• 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.

• 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.

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.

Top 5 Cities By Population

Top 5 Grocery Retailers By Sales

Top 5 Export Commodities To The United Kingdom

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:

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@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
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.

Name(s) of Regulation and/or Standard:

The United Kingdom has an Equivalency Agreement with the United States.

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.

Starting January 1, 2021: All organic goods imported from non-EU countries must continue to have a valid Certificate of Inspection (COI). There will be 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. 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

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.

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 (2021)
USDA’s GAIN Report United Kingdom Food Service Hotel Restaurant Institutional (2020)
USDA’s GAIN Report United Kingdom Retail Foods Report (2021)
USDA’s GAIN Report UK Supermarket Chain Profiles (2016)
USDA’s GAIN Report Key Retail Outlets 2016 (2016)

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 (2021)