Organic products: EU market records significant increase
January 20, 2020 at 10:45 AM ,
Der AUDITOR
Germany and France are leading countries
According to the United States Department of Agriculture (USDA), the organic market in the EU could grow by 18% in 2018, with a turnover of USD 45.4 billion. The two leading countries by far are Germany and France, which together account for over half of the EU-28 organic market. Here, US exporters see great potential to bring their organic products to the European market.
Different groups of buyers
According to the USDA, the growing sales of organic products in the EU are largely due to the retail trade, which places the products in the supermarket next to conventional food and thus makes them accessible to a wider public. At the same time, the number of special organic markets is increasing. The USDA also divides consumers into two groups. Although the first group of regular buyers is relatively small, it still accounts for half of the turnover on the organic market. The regular buyers get the goods on the farmer's market or in special organic shops, whereby the price plays a subordinate role. The second group, listed under "light buyers", attaches importance to environmentally friendly packaging, animal welfare, sustainability, etc., but purchases the products mainly in supermarkets. As this group is considerably larger, the organic industry is more focused on the growth of "light buyers".
Area under cultivation has doubled
The increasing demand for organic products is also noticeable in the area under cultivation. In the last decade, the area under cultivation has doubled in the EU-28 countries, with the largest shares in Spain, Italy, France and Germany. According to the latest FAS estimates, almost 14 million hectares of the cultivated area in these countries were used for organic farming in 2018.
US export values fall year-on-year
In 2018 the USA exported organic goods worth USD 620.4 million. However, the real value should be much higher, as the so-called HS (Harmonized System) mostly includes fresh products such as milk, fruit and vegetables in the organic export data, but not processed products or, for example, organic nuts. Organic goods to the value of USD 19.8 million were shipped to the EU, a large proportion of which was apples and vinegar of organic quality. The USDA expects that export values in 2019 will not quite reach those of the previous year because the EU has produced more products itself.
Source: USDA
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