Society is increasingly aware of animal welfare and care for the environment. The consumption of organic products has significantly grown in recent years. This article analyses the opportunities from the organic market in Europe.

What does ecological and organic mean? Is it the same as natural?

It is very common to confuse these terms, so here are the definitions: 

• Natural: Product that has not been subjected to synthetic changes and is derived from plants, animals or minerals.
• Organic: One that is free of chemicals such as fertilisers, pesticides or any other substance capable of altering the final product. However, it does not necessarily have to be of natural origin.
• Ecological: It is also known as biological. According to the WHO, it is any product of natural origin that has not been subjected to chemical alterations and that has been produced in a sustainable way. Therefore, this product category encompasses the previous two.

How to make your organic product stand out

The European Commission launched the Organic Certificate ten years ago to support organic production. It favours producers who carry out work with or for the environment, who comply with a series of quality requirements. 

How to get an Organic Certificate

In order to receive an organic certificate, the product must meet these requirements:

• Chemical free product
• At least 95% of its ingredients have been produced organically
• Does not contain genetically modified organisms
• Made using crop rotation or seasonal crops
• The product meets all the standards of the inspection plan (each producer is inspected at least once a year)
• The freedom and welfare of animals is respected

The organic sector in Europe

The organic market exceeded 40,000 million euros in Europe in 2018.

According to figures from the FiBL (Research Institute of Organic Agriculture), the market value of organic products is on the rise. This is proven by the remarkable growth it has experienced in recent years. Just three years ago, the figures reached 37.3 billion euros, with a growth of 11% compared to 2016.

In 2018, for its part, the market volume in Europe reached 40.7 billion euros, an increase of almost 10% compared to the previous year.  This leaves us with an absolute growth of more than 20% in just two years. This data strongly supports what we perceive: organic products are here to stay and in a few years, it will become the main market in the food sector.

Within the European territory, Germany leads the consumption of organic products with 27% of the total volume in the old continent. 

Germany is closely followed by France with 22%. These two countries alone account for almost 50% of the total consumption of organic products in Europe.Per capita, consumption of organic food has doubled in the last ten years. Significantly the per capita spend on products in this sector doubled over eight years, from approximately €25 in 2010 to approximately €50 in 2018.

If we transfer this data to the level of the European Union, it is even more positive for companies that operate within the organic market. The average annual consumption per person in the member states is €76. This is 50% higher than the average of all the countries of the continent. The number of producers increases year after year and Spain leads the ranking of countries with the largest organic area. There has been a 5% growth per year in organic food producers and processors. Not only is consumer behaviour changing, but producers are shifting their manufacturing methods and adapting to the demands of customers.  

The area of organic production reached 15.5 million hectares in Europe, 1.25 million more than in 2017. Spain led the way with 2.2 million, ahead of France and Italy with 2 and 1.9 million respectively. 

Europe is experiencing an exponential growth in the organic sector and there is still a lot of potential to explore in the coming years.

If you want to take advantage of these opportunities, please don’t hesitate to get in contact. How2Go can help expand your project internationally with your values and take your business throughout Europe: contact@h2gconsulting.com