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The UK organic market: Recovery and expansion

  • September 2014
  • -
  • MarketLine
  • -
  • 23 pages

Introduction

Sales of organic products in the UK witnessed a return to growth in 2013, following four years of contraction. The market is now worth £1.7bn. This case study looks at how the organic market is defined and product requirements. It also looks at the organic produce, organic health and beauty, and organic textiles industries, as well as the leading retailers distributing organic food.

Features and benefits

* This case study looks at the organic products sold by food, health and beauty, and textile companies.
* The case study also looks at how big distribution channels are, which are the fastest growing, and why.

Highlights

According to a survey by YouGov and the Soil Association in February 2014, the top reasons for buying organic were: fewer pesticides/chemicals (37% of respondents stated this as a motivating factor); natural/unprocessed (34%); and healthier for the respondent and their family (33%).
In the UK, organic produce is far and away the largest segment of the organic market. It accounts for nearly 97% of organic sales in the UK, while the health and beauty market has a share of just over 2%, and the textiles market has a share of 1%.
One product that is finding organic versions increasingly favored is baby food. Over half of spending (54.8%) on baby food goes on organic products. Sales of non-organic baby food fell by 7.9% in 2013. Baby food represented 10.4% of the UK organic market in 2013, up 1.2% from 2012.

Your key questions answered

* How is the UK organic market performing? Which products are witnessing strong growth?
* Why do people buy organic products, and which consumer group is more likely to purchase organic?
* Where do people buy organic products from?

Table Of Contents

The UK organic market: Recovery and expansion
OVERVIEW
Catalyst
Summary
ORGANIC FOLLOWS THE PRINCIPLES OF HEALTH, ECOLOGY, FAIRNESS, AND CARE
Internationally recognized principles define organic
Any product labeling itself as 'organic' must meet certain standards
Consumers mainly buy organic food for health reasons
Younger consumers are more likely to spend more on organic food
ORGANIC PRODUCTS INCLUDE FOOD, TEXTILES, AND HEALTH AND BEAUTY
The UK organic products market was worth £1.7bn at the end of 2013
The organic sales revival has not been felt by some farmers
Organic food sales have increased, although vary depending on the product
Organic textiles have experienced strong, double digit growth
Organic health and beauty credentials are under increasing scrutiny, while the market grows quickly
MOST CONSUMERS BUY ORGANIC PRODUCE FROM SUPERMARKETS, HOME DELIVERY, FARM SHOPS AND FARMERS' MARKETS
Multiple retailers
Independent retailers
Restaurants
CONCLUSIONS
The UK organic market is thought to be out of the woods
Health and beauty products and textiles are growing quickly
Consumers can purchase organic products from a wide range of places
Young people spend more on organic products
APPENDIX
Definitions
Sources
Further Reading
Ask the analyst
About MarketLine
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