Go Organic: Your Turnover Will Grow!

How can retailers and distributors profit from the positive sales trend of organic food products and expand their business?  By introducing new brands, or new products, or offering the organic variety of their standard range.

The organic food market, both in Europe and in the United States, is expected to grow until 2025 at a compound annual rate of between 6.7% and 7.6%, three times that of the whole food market for the same period.

Consumers’ increasing awareness and sensibility to environmental issues, animal welfare, personal health and food safety are fueling the remarkable performance of organic food products:  the outcome is that sales have been  steadily rising, even into double digits, over the past decade.

Across all economically developed markets, the consumer’s demand for quality food goes far beyond merely reading the list of ingredients or nutritional facts: it encompasses, rather, a knowledge of the production process throughout the entire supply chain.  It therefore comes as no surprise that European consumers have not stopped buying their favorite organic products when the economic downturn increasingly forced them to shop at discounters.

Market reports show that in the decade from 2005 to 2014 retail sales of organic products in developed markets soared (from 11.1 to 23 billion Euros) and so did the number of outlets or chains specializing in organic foods.

Italian producers have quickly adapted their operations to the new course of events, and are likely to get their longed’for rewards: the number of organic food products manufacturers exceeded 60,000 units at the beginning of 2016.

There seems only one conclusion we can draw: buyers should invest in such an interesting sector.

Organic products, indeed, look set to stay for the long run.

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