“If it’s got soil on it, it’s organic, right?”

Presentations made at the Soil Association Organic Trade Conference on October 23rd illustrate both the challenges and opportunities for UK organics.

David Preston of brand agency The Crow Flies demonstrated that consumers are highly receptive to messages about sustainability and environmental benefit, which in theory organics is well placed to address. When organic principles were explained to shoppers they found them “very compelling”. The harsh reality is that very few consumers have even a rudimentary grasp of organic principles and misconceptions are widespread : “if it’s got soil on it, it’s organic, right?”  So as ever organic is the answer to many pertinent questions, but that multi-layered approach is in itself limiting. David described Free Range as an “easy / automatic” choice and Fairtrade as an “auto-pilot” choice for bananas, better quality chocolate and hot beverages.

What does organics have to do to become an “auto-pilot’ choice? He made some suggestions

• More stories backed up by facts
• More pictures
• Toughen up the message, for example “We can’t survive without soil – it’s time to stop treating it like dirt”

Mike Watkins from Nielsen was able to report that in the 52 weeks to September 7^th 2019 organics enjoyed an increase in sales of 3.8% by value, which is double the total market growth of 1.9% for the same period. Klaus Arntz from Wessanen surveyed the organic market elsewhere in the EU. Growth rates for organic sales of 15% in Italy, 16% in Spain and 18% in France put our 3.8% firmly in perspective. What seems to work best is dedicated organic sections in supermarkets (like the ones we had ten years ago in the UK). Klaus also pointed out that being organic alone is no longer enough – it needs to be part of a “wider benefit bundle” within which plant-based has an important part to play.

David Preston described consumer choice as moving from “individual-centric” to “planet-centric’. With interest in how food production can address the climate emergency at unprecedented levels what is the response of the organic sector? How do we turn this intense level of concern into an increase in sales of organic food and drink?

Perhaps reading the summaries of the three papers I have cited here will help you think of an answer – if so, please share!

 

Changing Attitudes and Behaviours towards Food, Sustainability and Organic

David Preston, The Crow Flies (www.thecrowflies.co.uk)

1. Contextually big changes are afoot

• Greater awareness of planet-centric individual-centric drivers of choice impacting actual behavior
• Changing influencers on food choice
• Continued growth in mistrust, powering a desire for knowledge around food
• A growing desire amongst many for individual action balanced by a sense of powerlessness around some of the big sustainability issues (for some)

2. Influencers on food choice are also changing markedly

• Choices are being made in context of climate crisis
• People are consciously critiquing the validity of claims; each finding their own ‘trusted sources’. Facts & figures are increasingly the key to believability.
• Particularly ‘real-life’ documentaries and programming (Netflix, Blue Planet) have become a primary influencer…and become amplified and echoed

3. Meaning that people are interested in sustainability more than ever

• A virtuous circle is developing: ‘planet centric’ choices are becoming more important and understood and are augmented as retailers and suppliers innovate in this space.
• A constant stream of sustainability related stories or events act as fuel
• Made emotive by strong visual images: plastic straws and turtles; weed killer and bees; food banks and food waste; gyres of plastic floating in the ocean, packaging on products, demonstrators blocking our streets.

4. There are a number of dominant trends growing in importance and influence right now

• Artificial ingredients
• Dairy reduction
• Meat reduction
• Animal Welfare

5. Free Range and Fairtrade whilst widely known are taken for granted

• Free Range – easy / automatic choice
• Fairtrade – auto-pilot choice for bananas, often for better quality chocolate and hot beverages

6. Organic awareness and relevance has increased but understanding remains limited

• Very basic principles of organic are spontaneously recalled by most
• But little understanding of detail (if it has soil on it it must be organic…)

7.  As a result for most people organic is a relevant day to day choice only to the lower ticket price and most tangible categories – fruit, veg and salad

• Tier One = fresh vegetables, salad and fruit (regularly purchased by many)
• Tier Two = Dairy eggs, meat, fish (purchased by fewer)
• Tier Three = Everything else (purchased infrequently and by small number of people)

8. Has the organic message become too soft?

How about “We can’t survive without soil: its time to stop treating it like dirt”

9. What does this mean for organic going forward ?

• People have never been more interested and engaged by sustainability – now is time for organic to land its message: awareness is growing, relevancy is broadening: the organic proposition works when people hear it
• Organic’s benefits aren’t clearly known or understood
• Organic has to cut through with greater impact – easy to understand messaging for emotional connection, stories with strong facts to back up, be hard hitting and visual
• Take action together – unified organic voice needed

 

Organic Trends In The Multiple Retailers

Mike Watkins, Head of Retailer and Business Insight, Nielsen

1. Shoppers have been willing to spend more on organic foods at supermarkets

• value sales of organic food grew by 3.8% in 2019
• total market growth is +1.9%over the same period

2. Drivers of change shaping industry 

• Digital revolution
• Explosion of small brands
• Generation Z
• Healthy Planet
• Rise of local

3. Key reasons for buying organic – in order and compared to 2018

• No Pesticides
• Better for Environment(up)
• Taste Is Better (down)
• Perceived Better Quality
• Perceived Health Benefits (up)
• Better For Animal Welfare (down)

4. Organics is a growth opportunity for supermarkets

• 50% of households buy organic regularly
• Market share of organic is 1.6%
• Growth of organic sales at discounters is 20%
• 13% of supermarket organic sales made online
• Waitrose, Ocado and Sainsbury’s overtrade in organics

5. Top 4 organic categories contribute 78% of sales

• Dairy £430m, + 09% (3.5% share)
• Produce £361m, -1.2% (3.5% share)
• Canned / Packaged £264m. +5.8% (1.9% share)
• Meat Fish Poultry £160m. +6.65 (1.8% share)

    6.Mood Of The Nation Is Changing

• 36% of shopper willing to pay extra for ethical / environmental products
• 42% shoppers willing to switch to more environmentally friendly brand or private label
• 30% seek loose products with no packaging
• 55% try to buy British
• 85% think retailers should reduce plastic packaging
• Quality and premiumisation are global trends
• Organic food and drink can lead the way
• It’s all about being safe, socially responsible and sustainable

Wessanen Presentation on Organic Growth Across The EU – Klaus Arntz

• Continued strong growth of organic across Europe – no end in sight
• Organic is out of the niche in supermarkets with private label and large brands taking share
• Organic alone no is longer enough – needs to be part of a wider benefit bundle (ideally plant based!)
• Dedicated space in store (plus healthy specialty channel) drives stronger growth
• Organic is uniquely placed to address key health and sustainability concerns
• Category specialist brands are outgrowing cross category brands