North American Market for Organic Foods now larger than Europe's

December 29, 2010
The global market for organic food &drink is recovering from the financial crisis. After several years of double-digit growth, the market expanded by just 5 percent in 2009. Healthy growth rates are resuming as 'mainstreaming' of organic products continues. A major driver of market growth in all geographic regions is increasing distribution in mainstream retailers.

The European market for organic food &drink has been most affected by the financial crisis. Declining consumer spending power and rationalisation of organic product ranges in food retailers caused the UK market to contract in 2009. The German market, the largest in Europe, showed no growth. In contrast, the organic products market in some countries  - including France and Sweden - showed resilience, expanding by over 15 percent.

Healthy growth is continuing in the North American market, which has overtaken the European market to become the world's largest this year. Supply continues to fall short in many organic product categories, leading to imports from various countries. Latin America has become a major source of organic fruits, vegetables, meats, seeds, nuts and ingredients.

The fresh produce category comprises most organic food &drink sales. Fruit &vegetables like apples, oranges, carrots and potatoes are typical entry points for consumers buying organic products. Their fresh nature appeals to consumers seeking healthy &nutritious foods. Dairy products and beverages are the next most important organic product categories.
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