Rising Demand for Organic Products in EU: Trends and Forecast

Organic Products

The sector of organic agriculture is lucrative for investment, and the organic food industry is among the most dynamically growing industries globally. As previously highlighted by us, the European Organic Food & Beverages Market is estimated to “grow at a CAGR of 8.34% during the forecast period 2020-2025.”

Germany – The Hub of Organic Market Sales in EU

With the most prominent organic products market in Europe, Germany reported almost twelve billion euros worth of retail sales in 2019. Germany contributed a solid 31% to the overall organic products retail sales in the European Union in 2019, closely followed by France at 29%. The German industry has registered a decline in synthetic ingredients due to the expanding use of botanicals, replacement of emulsifiers with enzymes and other texturisers, and a rise in demand for natural products. These changing trends are expected to fuel the already amplifying demand for organic food and beverage products.

Steep Ascent of the Organic Market

The primary cause stimulating organic market growth is the increasing awareness among consumers about the health benefits of organic food products. Organic food has been proven to be high in certain nutrients such as antioxidants and omega-3 fatty acids, among others.

Another reason why the number of consumers switching to organic food is on the rise is that they are gaining more knowledge about their food’s production process. For food to be labelled organic, a minimum of 95% of its ingredients must be sourced from organically produced plants or animals. For ensuring verified sales, the organic food needs to be approved by an organic certification body as per EU-wide regulations.

European consumers are also highly concerned about the long-term implications of the products in terms of their impact on health, environmental sustainability, and social responsibility. A preference for sustainable products has also triggered the demand for organic food. People aim to shrink their share of the negative impact on the planet by purchasing organic products.

With organic claims as high as 61%, it is evident that European consumers have a high level of awareness in terms of consumption, with an additional 11% actively seeking such products. The appeal for different products varies between countries: the UK has a more extensive consumer base for organic fish, while Germany boasts a larger organic confectionery market. The avenues for purchase mostly tend to be specialised organic retailers or general ones. 

The Road Ahead

However, the industry still has much ground to cover. Proportionally, organic farmland rarely exceeds the 15% mark in most countries, compared to overall farmland. Even the size of this small farmland differs considerably from one nation to another, with four member states of the EU accounting for more than half of all the organically farmed land. Spain, France, Italy, and Germany hold over fifty per cent of all organic farmland in Europe. Additionally, organic meat production is a minuscule portion of overall livestock, chiefly in the case of pork at only 0.6%. Therefore, while sales are booming, organic production is yet to catch up with its demand in Europe.

As a premium organic food wholesaler, Biohabit offers superior quality organic products to retailers to meet this rising demand within Europe. We understand the uncompromising nature of standards to be met within the market, and that’s why we strive to be the best at what we do. By enabling retailers to procure the best quality products, we envision cultivating a habit of organic consumption wherever our products go.

Explore our product catalog here – https://biohabitfood.com 

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