Mintel reveals increase in organic food and drink market in Europe

Almost a fifth (17%) of all food and drink products launched in Europe have carried an organic claim, according to new Mintel research.

The total share of new global food and drink product launches with organic claims has risen from 6% to 10% between August 2009 and July 2019, while the number of European launches has gone up from 9% to 17% in the last ten years.

Moreover, the study reveals that current leaders in the field include France (accounting for 22% of all organic launches in Europe between 2018 and 2019), Germany (20%) and Spain (9%).

North America has also experienced an increase in organic launches from 9% in 2009 to 15% in 2019, according to Mintel.

Global food and drink analyst at Mintel, Katya Witham, said: “Organic produce has seen growing support among European consumers at a time of increasing concerns for wellbeing, health and the environment.

“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.”

“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.”

Following the rise of organic food and drink launches in Europe, “suitable-for” (free-from) claims have risen from 20% to 43% in the last ten years, as well as positionings of “ethical” and “environmental” have grown from 23% to 41%.

Mintel research shows that among consumers in France, Germany, Italy, Spain and Poland, millennials (aged 25-34) and generation z’s (aged 16-24) are the most likely demographic to purchase organic food and drink and are also more likely to pay higher prices for these products.

Kayta added: “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.”