London, United Kingdom
June 11, 2008
A rise in ethical consumerism is
spiking demand for organic and fair trade fresh produce in
Europe. New research by
Organic Monitor shows that sales of ethical fruit &
vegetables surpassed the EUR 5 billion mark for the first time
in 2007.
Fairtrade fruit & vegetables are reporting the highest growth,
with sales expanding by 92% last year. High growth is occurring
as a number of European supermarkets make fairtrade commitments.
Most developments have been in the UK where Sainsbury’s and
Waitrose converted their entire banana supply to fairtrade in
2007. A quarter of all bananas are now certified fairtrade in
the UK, the highest market share for any EU country.
The new report on the European Market for Ethical Fruit &
Vegetables finds that organic and fairtrade products have made
most inroads in northern European countries. Over 5% of all
fresh produce sold in countries like the UK, Germany and Finland
is now certified organic and / or fair trade. Switzerland is the
frontrunner where the market share has already exceeded 10%.
In spite of fair trade products making great strides, organic
products comprise most revenues in the European ethical fresh
produce market. Organic vegetables are the largest category,
valued at EUR 2.5 billion in 2007. However, organic fruit sales
are predicted to eclipse organic vegetable sales as more
tropical and exotic varieties are introduced.
The organic fresh produce industry continues to be dogged by
supply shortages. The study finds that European retailers are
developing global supply chains to ensure continuous supply of
organic fruits & vegetables. European organic food production is
not keeping pace with demand. Indeed, several European countries
are reporting declining areas of organic farmland. Rising prices
of agricultural products are discouraging farmers to convert to
organic practices.
Supply-demand imbalances are expected to continue as consumer
demand for ethical & ecological products rises. Fairtrade
products are becoming popular as consumers believe product
purchases have a direct impact on third world poverty. Motives
for organic fruit & vegetables are broader, encompassing health,
nutrition and ecological issues. Organic Monitor projects the
market for organic and fair trade fresh produce to double in the
coming years.
A major challenge the industry faces is low consumer
understanding of eco-labels. Although certified fairtrade and
organic products have clearly visible symbols and logos,
consumers are getting confused as to what the eco-labels mean
and the differences between them. The market for fairtrade
products is also suffering from a lack of standards; a
relatively low number of fruits & vegetables have fairtrade
standards. Retailers and traders aim to expand product ranges,
however limited product lines prevent them from doing so.
Research Publication: #1002-42 The European Market for Ethical
Fresh Produce: Organic and Fairtrade
Publication Date: June 2008
More information is on
http://www.organicmonitor.com/100242.htm
and
http://www.organicmonitor.com/r1106.htm
Organic Monitor is a business research & consulting company
that specialises on the global organic & related product
industries. Since its formation in 2001, Organic Monitor has
been providing a range of business services to operators in
high-growth ethical industries. Our business services include
market research publications, customised research, business
consulting and workshops. |
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