The European Market for Tropical Organic Products
Transcript of The European Market for Tropical Organic Products
Oragnic market Europe – page 1
The European Market for Tropical Organic Products
The European Market for Tropical Organic Products
Salvador Garibay
Organic market in Europe – page 2
ContentContent
Short project description
Development of the Organic Market in Europe
The European Organic Market
The Organic Swiss Market
Characteristics of the Tropical Organic Market
Perspectives for some organic tropical products
General Remarks of Traders on the Organic Market for Tropical Products
Oragnic market Europe – page 3
European Market Overview for Organic and Fairtrade
(with a focus on potential products from Central America)
European Market Overview for Organic and Fairtrade
(with a focus on potential products from Central America)
General market perspectives, projected growth, hot market segmentsStructure of trade channels and trendsMarket requirements and general market trendsConsumer preferences and trends
Oragnic market Europe – page 4
Quick market scans for organic and fair trade cocoa, sugar, bananas, pineapple juice and mango puree
Quick market scans for organic and fair trade cocoa, sugar, bananas, pineapple juice and mango puree
Description of current situation and general market perspectivesMarket size estimate, structure of supply, growth behavior and potentialIndicative market pricesDescription of trade channels’ structureMost relevant market requirements and regulations
Organic market in Europe – page 5
Development of the Organic Market in EuropeDevelopment of the Organic Market in Europe
The development of the organic market is based in private initiatives («organic market initiatives» )
Until 1980 the organic market was only a niche;organic stores = were the most important sales channels
At the beginning: only few products were offered (fruits, potatoes and vegetables). Much later specialty products (fresh organics herbs) were introduce
Import of organic tropical products started with coffee, cocoa, spices, tea, and fresh and dry tropical fruits like mango and pineapple
Actually: Organic products are widely distributed in the supermarkets
The most important products are milk products and vegetables
Organic market in Europe – page 6
The European Organic MarketThe European Organic Market
Sales for Organic Food in European Countries (2003)
173
6
18
21
144
212
300
323
339
395
420
742
1'400
1'607
3'100
1'578
0 1'000 2'000 3'000 4'000
Sum Other European Countries
Czech Republic
Hungary
Greece
Spain
Finland
Belgium
Austria
Denmark
Netherlands
Sweden
Switzerland
Italy
France
Great Britain
Germany
Mio. Euro Source:
Source: Richter and Padel, 2005
Germany: the biggest importer
United Kingdom: the most import dependent
France: 40% of total imports are not from EU
Switzerland: import 100% of tropical products
Import of organic products:
Holland: international turntable of organic
Organic market in Europe – page 7
The Organic Swiss MarketThe Organic Swiss Market
COOP
COOPCOOP
COOP
Sources:
COOP, Migros, FiBL, GfK
Organic market in Europe – page 8
Total Sale of Organic ProductsTotal Sale of Organic Products
582
805
946
1056
656
0
200
400
600
800
1000
1200
1998 1999 2000 2001 20020,0
5,0
10,0
15,0
20,0
25,0
Total sales of organic products (Mio. CHF) Annual growth rates
Mio. CHF %
Total de ventas de productos orgánicos millones Sfr. Tasas de crec. anual
2003 5-10%
Organic market in Europe – page 10
Import of Organic Products in Switzerland (%)
0 10 20 30 40 50 60 70 80 90 100 %
Leche y productos lacticos
Frutas y hortalizas frescas
Cereales y productos de panaderia
Hierbas aromaticas y medicinales
Frutas y hortalizas procesadas
Vino
Semillas oleaginosas
Flores
Frutas deshidratadas y nueces
Tejidos
Productos cosmeticos
Azucar y dulcificantes
Caf , Cacao, T
Frutas tropicales
Fuente: FiBL (estimaciones 2000)
Organic market in Europe – page 11
Characteristics of the Tropical Organic MarketCharacteristics of the Tropical Organic Market
lack of constant availability
Non balanced supply-demand: passion fruit, mango, pineapple juice
Influencing factors:
Crop failure occurs more often
Discrepancies in production methods and standards
shortage of some organic ingredients
The product quality does not meet the standards of the European costumer
Low volumes from producers
Low service and high cost
Organic market in Europe – page 12
The Fresh Vegetables Organic Market (1)
European consumers prefers vegetables grown domestically.
Importation are made only as supplement.
The tendency is the importation of the Mediterranean area during the winter.
East European countries might play an important role in the future.
Organic market in Europe – page 13
The Fresh Fruits Organic Market (2)
Generally supermarkets has strong interest to complement their assortment with organic exotic fruits (citrus, pineapples, mangos, papaya, coconuts etc.).
The European organic market for fresh tropical fruits offers good sales perspectives for growers in tropical countries.
Example: the sale volumes of organic citrus is reaching 10-20% annual growth rates. In the case of pineapple the demand will be increased in near future.
Organic market in Europe – page 14
The Banana Organic Market (3)
The market of organic banana still growing in the last years, reaching annual growth rates of about 20%.
In Europe, the retail chains still been the motor for the sale of organic bananas.
The most important suppliers are Ecuador, Dominican Republic, Peru, Colombia and Brazil.
It is expected that the weekly sale volumes of organic banana reaches the 200 containers.
Organic market in Europe – page 15
The Dry Fruit Organic Market
Leading markets for dry fruits are the UK, Germany, France and The Netherlands.
Dry fruits are mainly used as ingredients for food processing. For example, as ingredients in breakfast cereals mix.
Bakeries and breakfast cereal mixers are one of the largest end-users of organic dry fruits and nuts in European countries.
Tropical dry fruits for which the markets are smaller but promising include dried banana, mango, papaya and pineapple.
Organic market in Europe – page 16
The Organic Sugar Cane Market (5)It is estimated that the sales of organic sugar cane reachs 4000 to 5000 tons for the EU.
Organic sugar cane is mostly sale to the processing industry.
There is a good demand on the retail sector (Supermarkets).
The supply of organic sugar cane has been improved.
The market shows an positive development.
It is estimated annual growth sale rates of reach 20%.
Organic market in Europe – page 17
The Organic Juice Market (6)Organic orange juice is the most popular and consumed imported fruit juice in Europe.
The leading exporter of organic orange juice is Brazil.
There is a strong interest for organic pineapple and mango from supermarkets.
The main suppliers of organic pineapple juice are India and Ghana.
Germany is the largest market for organic fruit juices (46%), followed by France (16% and the UK (12%).
The demand will growth step by step.
Organic market in Europe – page 18
The Organic Cacao Market (7)Good potential demand of organic cocoa even though oversupply in the market.
2002-2005 estimated growth sales rates of 16 to 20%.
Dominican Republic is the leader (14,350 tons). Mexico is doing big steps (9,500 tons).
The chocolate industry main costumers.
The market wishes organic+fairtrade cocoa.
The industry is looking to develop cocoa products that can make a story.
Organic market in Europe – page 19
General Remarks of Traders on the Organic Market for Tropical Products
The organic market for tropical products from being a demand-driven market is a supply-driven.
The higher the supply, the lower the premiums at all levels (producer, trader), today premiums of less than 15 per cent are more realistic.
Who can offer consistent high-quality products and ensure high-quality processing methods can demand better prices.
Perspectives are open to those suppliers that can achieve:Continuous investment in quality systems (good quality)
Good price
Full traceability
Upgraded processing (e.g. IQF freezing)
On-time delivery (excellent logistics from the supplier)
Delivery against product specifications
Good customer services
Moreover, double labelling (organic+Fairtrade) is gaining more and more importance