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Supply Chain

Organic Market To Grow Up To 7.6% Yearly

By Branislav Pekic
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Organic Market To Grow Up To 7.6% Yearly

The market for organic products in Europe and the US is expected to grow until 2025 at a compound annual growth rate of between 6.7% and 7.6%.

This percentage corresponds to about three times the rate of growth expected in general for food consumption, according to research by Italian dairy consulting firm CLAL.it based on Rabobank data.

Consumers' increasing awareness of environmental issues, animal welfare, and health and food safety, pushed sales of organic products to growth rates in the double digits in recent years and this trend should continue.

This is especially true for the more economically advanced and mature markets, where the concept of food quality includes not only the compositional and nutritional characteristics but also the method by which foods are obtained, along the entire production chain.

In Europe, with the ongoing economic crisis, consumers have increasingly turned to discounters without abandoning organic products. In the period 2005-2014, the value of retail sales of organic products rose from €11.1 billion to €24 billion, with 10.3 million hectares devoted to these crops.

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Dairy products from the organic range account for 5-10% of the overall  market in Austria, Germany and The Netherlands, with milk already exceeding 15% of total sales in Austria. Germany accounts for one third of the total value of the organic market (€7.9 billion consumption), followed by France (€4.8 billion), a country with an annual growth rate of 10%.

© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. To subscribe to ESM: The European Supermarket Magazine, click here.

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