Almost a fifth of food and drink launches in Europe are organic: study
Total share of organic products has risen in the last decade.
Europe is leading the way in organic food and drink innovation, with almost a fifth (17%) of all food and drink products launched in the continent carrying an organic claim, compared to 9% a decade ago.
According to Mintel’s Global New Products Database (GNPD), France accounted for 22% of all organic launches in Europe between August 2018 and July 2019, followed by Germany (20%) and Spain (9%).
The last 10 years saw the total share of new global food and drink product launches with organic claims rising from 6% to 10% between August 2009 and July 2019.
“Although organic products have fully entered mainstream channels and continue to gain traction with shoppers, the organic segment still offers innovation opportunities across numerous food and drink categories. This is especially true in categories where organic claims have previously played a minor role, such as wine,” Mintel global food & drink analyst Katya Witham said.
Free-from, ethical messages gaining importance
Mintel research also revealed that the share of organic food and drink launches in Europe with “suitable-for” (free-from) claims experienced growth over the past ten years, rising from 20% to 43% between August 2009 and July 2019. Ethical claims have also witnessed a similar increase during the same time period. Whilst 23% of all organic food and drink launches in Europe were positioned as “ethical” and “environmental” ten years ago, this proportion grew to 41% in the year to July 2019.
“Organic claims are increasingly becoming part of wider health and ethical product positioning, hence the popularity of launches with free-from and ethical claims. Veganism/plant-based is one of the hottest trends in food and drink right now, so it seems natural that organic producers are linking the two. According to our research, almost half of vegan food and drink products launched in the past twelve months were positioned as organic. Given the trend towards veganism, plant-based organic brands are taking their lack of animal-derived ingredients to the next level, highlighting a more holistic approach.” Katya adds.
Millennials, Gen Zs most likely to purchase organic
Mintel also discovered that among consumers in France, Germany, Italy, Spain, and Poland, Millennials (aged 25-34) and Gen Zs (aged 16-24) are the most likely to purchase organic food and drink. Of these five countries, Italians are most likely (87%) to buy organic food and drink, followed by their German (86%), Spanish (85%) and French (81%) counterparts. In Poland, it’s Gen Zs that are most interested in organic food and drinks, with 83% claiming to buy such products, compared to 80% of Polish millennials.
Younger consumers are also more likely to pay higher prices for organic food and drink. This is especially true for Spanish Gen Zs: 38% say organic products present good value for money, in comparison to 26% of all Spaniards.
Meanwhile, young Germans are less willing than their Spanish counterparts to pay extra for these products: 27% of 16-24-years-olds accept higher prices for organics, compared to 21% of the German population as a whole.
“Generation Z has grown up at a time when health and wellness is high profile. For younger generations, the social and environmental impact of consumption is of great importance and this is likely to help fuel future growth of the organic sector. Moreover, the prevalence of foodies among younger consumers creates an opening for more premium organic convenience products that are designed for the food-obsessed who want to eat well on-the-go or prepare upscale healthy food and drink easily and quickly at home.” Katya concluded.
