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the world of organic agriculture - Organic Eprints

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8 Overview <strong>of</strong> <strong>the</strong> Global Market<br />

for <strong>Organic</strong> Food & Drink<br />

Amarjit Sahota 1<br />

8.1 Introduction<br />

Global sales <strong>of</strong> <strong>organic</strong> food & drink increased by about nine percent to 27.8 billion USD 2 in<br />

2004. The highest growth was reported in North America, where <strong>organic</strong> product sales are<br />

expanding by over 1.5 billion USD 3 a year. With Europe, <strong>the</strong> two regions comprise 96 percent <strong>of</strong><br />

global revenues. Although demand for <strong>organic</strong> food is concentrated in <strong>the</strong> nor<strong>the</strong>rn hemisphere,<br />

production and sales are also increasing across <strong>the</strong> globe. Farmers are increasingly taking <strong>the</strong><br />

<strong>organic</strong> option because <strong>of</strong> <strong>the</strong> health and environmental benefits, whereas consumers are<br />

responding by purchasing high quality and ethical products.<br />

8.2 Europe<br />

The European market for <strong>organic</strong> food & drink is <strong>the</strong> largest in <strong>the</strong> <strong>world</strong>, estimated at 13.7<br />

billion USD 4 . Sales <strong>of</strong> <strong>organic</strong> products increased by about five percent in 2004 however many<br />

countries reported higher growth rates.<br />

The German market, <strong>the</strong> largest in Europe, experienced <strong>the</strong> highest growth in 2004. Sales<br />

increased by 12 percent to about 4.2 billion USD 5 in 2004. Consumer demand for <strong>organic</strong> food<br />

continues to streng<strong>the</strong>n as <strong>the</strong> number <strong>of</strong> channels <strong>of</strong>fering <strong>organic</strong> products expands. A growing<br />

number <strong>of</strong> conventional supermarkets are <strong>of</strong>fering <strong>organic</strong> products and <strong>the</strong> number <strong>of</strong> <strong>organic</strong><br />

supermarkets continues to increase with 40 new <strong>organic</strong> supermarkets opening in 2004 alone.<br />

The UK market continues to show healthy growth with 10 percent growth reported in 2004. The<br />

UK market, valued at about 1.9 billion USD 6 , is <strong>the</strong> third largest in <strong>the</strong> <strong>world</strong>. Like most European<br />

countries, <strong>the</strong> highest growth is being observed in <strong>the</strong> fruit & vegetable, meat & dairy categories.<br />

Much <strong>of</strong> <strong>the</strong> growth in <strong>the</strong> UK market is occurring in non-supermarket channels like <strong>organic</strong><br />

food shops, box schemes, and farmers markets. A growing number <strong>of</strong> catering & food service<br />

companies are also <strong>of</strong>fering <strong>organic</strong> food.<br />

1 Amarjit Sahota, The <strong>Organic</strong> Monitor, 79 Western Road, London W5 5DT, United Kingdom, Internet http://www.<br />

<strong>organic</strong>monitor.com/<br />

Amarjit Sahota is <strong>the</strong> director <strong>of</strong> <strong>Organic</strong> Monitor, a business research & consulting company that specializes on <strong>the</strong> international<br />

<strong>organic</strong> & related product industries.<br />

2 27.8 billion USD = 23.5 billion EUR (per 31.12.2005)<br />

3 1.5 billion USD = 1.3 billion EUR (per 31.12.2005)<br />

4 13.7 billion USD = 11.6 billion EUR (per 31.12.2005)<br />

5 4.2 billion USD = 3.6 billion EUR (per 31.12.2005)<br />

6 1.9 billion USD = 1.6 billion EUR (per 31.12.2005)<br />

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