Outlook of the organic food and beverages market in Europe
Technavio’s market research analyst predicts the organic food and beverages market in Europe to grow at a CAGR of around 7% in terms of revenue until 2020. Recently, it has been observed that the demand for organic food products in Europe is rising rapidly. Much of this growing organic market share and demand can be attributed to the populace’s growing preference for a healthy lifestyle and the rising awareness about the health benefits of organic food products. This paradigm shift in the consumer’s preferences will spur the demand for organic food products and beverages during the forecast period.
The increasing shelf space for organic food products is the key trends for the growth of the organic food market. In recent times, it has been observed that the augmented demand for organic food products has led to the allocation of more shelf space to organic food brands in retail stores. The increased visibility and accessibility of organic food products and beverages in retail outlets will make it more convenient for consumers to purchase such products. This improved accessibility and visibility will, in turn, impel the sale of organic food in Europe during the forecast period.
Product-based segmentation of the food and beverages market in Europe
- Fruits and vegetables
- Dairy products
- Prepared food
- Baby food
- Meat and poultry
- Beverages
- Bakery products
In this market study, analysts have estimated the fruits and vegetables segment to account for more than 24% of the total market share by 2020. The demand for organic fruits and vegetables has increased with growing awareness about their health benefits. Since this segment consists of products that do not use chemical fertilizers or pesticides, many retailers across the European region have started stocking their stores with organic fruits and vegetables. This increase in their shelf space will result in the growth of this market segment during the forecast period.
Segmentation by distribution channel and analysis of the organic food and beverages market in Europe
- Supermarkets and hypermarkets
- Organic retailers
- Online retailers
Technavio’s market research analyst has estimated the supermarkets and hypermarkets segment to account for approximately 43% of the total market share by 2020. The sale of organic food products through supermarkets and hypermarkets is increasing in Europe as these stores are increasingly stocking different organic food brands, expanding shelf space for organic food, and launching their own organic food labels.
Competitive landscape and key vendors
The organic food and beverages market in Europe is highly fragmented and dispersed due to the presence of numerous international and regional players. In this market, the vendors are competing on the basis of product differentiation, portfolios, and pricing to gain maximum market traction. The level of competition in this market is expected to intensify until 2020 due to an increase in the number of retailers introducing their own private label organic food products. A large number of private label brands are also coming up on the organic food market europe, which further intensifies the level of competition between them.
Leading vendors in the market are -
- Carrefour
- Metro
- REWE
- Tesco
- Koninklijke Ahold
Other prominent vendors in the market include Alnatura, Amy's Kitchen, Asda Group, Auchan¸ Clif Bar, Danone, E.Leclerc, Edeka Group, Hain Celestial, Hero Group, J Sainsbury, Lactalis Group, Morrisons, Naturata, Natursoy, Waitrose, and Wessanen.
Key questions answered in the report include
- What will the market size and the growth rate be in 2020?
- What are the key factors driving the organic food and beverages market in Europe?
- What are the key market trends impacting the growth of the organic food and beverages market in Europe?
- What are the challenges to market growth?
- Who are the key vendors in this market space?
- What are the market opportunities and threats faced by the vendors in the organic food and beverages market in Europe?
- What are the key outcomes of the five forces analysis of the organic food and beverages market in Europe?
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