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Contents
Organic Food and Drink Retailing - UK - June 2000

'Organic' is the biggest growth area for the multiples and, with a share of over 70% of the market, they have been major drivers in business.

With the organic logo having taken on all the resonance of a brand itself, how will future trends in the organic product domain affect how the sector is marketed?

Which consumer markets are most interested in organic products?

Organic food and drink is now the biggest growth area of the UK food retail market, and the organic logo has taken on all the resonance of a brand itself. This expansion has taken place during a buoyant period of the economy and, coupled with food scares, has provided the most fertile environment for the embryonic growth of such produce. As organic products move from being niche products to the mainstream, retailers are having to assess to what extent organic ranges should be blocked together, displayed with other products or form separate store-within-a-store offering. Moving beyond food scares, many products are showing patterns of a long-term growth trend and are permeating deeper into conventional food products. Is this likely to change the scope of the wider market and consumer buying patterns beyond recognition? A broad range of media also continues to play a crucial role in covering food and health issues and generating consumer interest, but can this be harnessed still further? Throughout the whole retail sector, e-shopping is changing many of the ground rules, particularly for organic produce which lends itself to the fresh approach of home delivery.

'Organic' is the biggest growth area for the multiples and, with a share of over 70% of the market, they have been major drivers in business.

With the organic logo having taken on all the resonance of a brand itself, how will future trends in the organic product domain affect how the sector is marketed?

Which consumer markets are most interested in organic products?

Organic food and drink is now the biggest growth area of the UK food retail market, and the organic logo has taken on all the resonance of a brand itself. This expansion has taken place during a buoyant period of the economy and, coupled with food scares, has provided the most fertile environment for the embryonic growth of such produce. As organic products move from being niche products to the mainstream, retailers are having to assess to what extent organic ranges should be blocked together, displayed with other products or form separate store-within-a-store offering. Moving beyond food scares, many products are showing patterns of a long-term growth trend and are permeating deeper into conventional food products. Is this likely to change the scope of the wider market and consumer buying patterns beyond recognition? A broad range of media also continues to play a crucial role in covering food and health issues and generating consumer interest, but can this be harnessed still further? Throughout the whole retail sector, e-shopping is changing many of the ground rules, particularly for organic produce which lends itself to the fresh approach of home delivery.

This report covers the market for UK retailing of organic food and non-alcoholic drink. Since the multiples have cultivated the sector with own-label produce - against the lack of established opposition - consumers have tended to recognise the category rather than individual brand names. What are the opportunities for independents and convenience stores mounting a challenge in the organic food market? Organic Food Retailing looks at how supermarkets have developed the market and supply sources, and in so doing have encouraged the growth of independent specialists which are now offering a similar one-stop-shop approach with far larger ranges. What are the determining factors in the purchasing decisions of consumers when buying organic food? This report determines the current climate and likely future implications.

Other Mintel reports of relevance include:

- Special Report, Retail Review, 2000

- Organic Food and Drink, Market Intelligence, November 1999

- Food Retailing, Retail Intelligence, June 1999

- Greengrocers, Retail Intelligence, January 1999.


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