EastAgri Annual Meeting BEST FOOD · EastAgri Annual Meeting BEST FOOD: HOW TO PRODUCE BOTH QUALITY...

© Euromonitor International

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EastAgri Annual Meeting

BEST FOOD: HOW TO PRODUCE BOTH QUALITY AND QUANTITY IN EUROPE AND CENTRAL ASIA Belgrade, Serbia - 18-19 June 2014

http://www.euromonitor.com/

EXPANSION INTO NEW MARKETS THROUGH QUALITY ENHANCEMENT: WHAT DOES IT TAKE?

19TH JUNE 2014, FAO/ERBD EASTAGRI ANNUAL MEETING DIANA COWLAND – SENIOR HEALTH AND WELLNESS ANALYST


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• 12 Regional offices - 800+ analysts in 80 countries

• Cross-country comparable data and analysis

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consumers

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• All retail channels covered

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About Euromonitor International

INTRODUCTION London

Singapore

Shanghai

Dubai

Vilnius

Cape Town

Santiago

Tokyo

Sydney

Chicago

Bangalore

Sao Paulo


http://www.tripadvisor.co.uk/LocationPhotoDirectLink-g303631-i60501516-Sao_Paulo_State_of_Sao_Paulo.html

WHAT CAN BE LEARNT FROM ORGANIC?

FOCUS ON THE EASTAGRI REGION

CONCLUSION

US$

32.3Bn GLOBAL RETAIL SALES IN 2013

4.2% GLOBAL GROWTH IN 2013

US$

7.5Bn EXPECTED NEW SALES OVER 2013-2018


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0

5

10

15

20

25

0

5

10

15

20

25

30

35

40

45

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

% Y

-on

-Y G

ro

wth

(c

on

sta

nt)

Re

tail

Sa

les

(U

S$

bil

lio

n)

Global Organic Packaged Food and Beverage Retail Sales, 2005-2018

Organic Packaged Food Organic Beverages

% Y-on-Y Growth Organic Packaged Food % Y-on-Y Growth Organic Beverages

Potential For Organic Remains Good Despite Economic Slowdown

FAO/ERBD EASTAGRI ANNUAL MEETING



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16

18

NorthAmerica

WesternEurope

Asia Pacific Australasia LatinAmerica

EasternEurope

Middle Eastand Africa

Re

tail

Sa

les

(U

S$

bil

lio

n)

Organic Retail Sales by Region, 2005-2018

2005

2008

2013

2018

Organic Retail Sales Set to Reach US$39.8Bn in 2018: Lead By North America and Western Europe




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0

2

4

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8

10

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2005 2006 2007 2008 2009 2010 2011 2012 2013

% y

-on

-y g

ro

wth

(c

on

sta

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Global Prepared Baby Food: Organic vs Non-Organic Y-on-Y Value Growth 2005-2013

Organic Prepared Baby Food Prepared Baby Food

Organic Baby Food Offers Organic +

Consumer Group

Safety

Functional

Convenience

Lower Unit Price

Case-Study: Organic Baby Food Out-Performs Conventional Baby Food




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Consumers tend to think of “organic” as meaning

the same thing as “natural”

Only half of shopper believe „natural‟ and

„organic‟ products are produced by stringent

regulations

Need for more stringent legislation

Need for Uniform Legislation and Consumer Education


Key Findings From Survey




CONCLUSION


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0

50

100

150

200

250

2005 2006 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Re

tail

Sa

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(U

S$

mil

lio

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Performance of Organic Packaged Food and Drink in Key Countries in the Europe and Central Asia Region, 2005-2018

Turkey

Russia

Poland

Hungary

Ukraine

Bulgaria

Russia Leads in 2013 But Turkey Set to Gain No.1 Spot in 2016


Note: Countries listed in this slide are those covered by Health and Wellness Research



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Russia

• Absence of organic standards • Domestic farmers and manufacturers set to obtain EU certification drive up price of organic food

• Majority is imported specialist retailers

Bulgaria

• Manufacturers used to take advantage of the relaxed regulation by labelling their products as Organic or Bio

• New regulation compliant with EU legislation

Ukraine

• Law for Ukraine on Production and Trade of Organic Produce approved on September 3 2013

• Law to come into force in 2014 • In 2013 0.7% arable land dedicated to organic farming

Regulation Only Recently Being Enforced In Eastern Europe




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Green Features Important to Russian and Turkish Consumers




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0% 20% 40% 60% 80% 100%

Japan

UK

US

France

Russia

Germany

Brazil

India

China

More than double

A lot more

Somewhat more (50%more)

A little more

No extra

60% of Russian Willing to Pay More For Environmentally/Ethically Conscious Products




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0 20 40 60 80 100

None of the Above

Supports Local Communities

Fair trade

Locally sourced

Organic

Free range

Sustainably Produced

Natural

% Respondents

Russia

Germany

Russian Consumers Most Willing To Pay For Natural Products: In Comparison Germans Looking For Fair Trade




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Traceability and Transparency in The Food Chain


Emerging markets

Quality control checks Food safety enforcement

Challenges

Emerging markets Developed markets

Supply chain inter-connection

Contagion effect from suppliers to

manufacturers

Certification

Full Traceability

of Ingredients

Increase Consumer Confidence



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June 2012 Billion Dollar Organic Markets

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14

16

Re

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2013 2018

Opportunities to Capitalise on EU & USDA Trade Agreement





CONCLUSION


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Consumer Market Conditions

Understanding of „green‟ terms

Health

Trust in „green‟ labels

Regional/ cultural beliefs

Influences On Consumers’ “Green” Purchasing Decisions & Willingness To Pay


Economic Conditions

Availability

Price

Legislation


THANK YOU FOR LISTENING

Diana Cowland

Senior Analyst – Health and Wellness

[email protected]

mailto:[email protected]


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Organic Hot Drinks Organic Soft Drinks

Organic Coffee Organic Non-Cola Carbonates

Organic Fresh Coffee Organic Concentrates

Organic Instant Coffee Organic Liquid Concentrates

Organic Tea Organic Powder Concentrates

Organic Black Tea Organic Fruit/Vegetable Juice

Organic Fruit/Herbal Tea Organic 100% Juice

Organic Green Tea Organic Juice Drinks (up to 24% Juice)

Organic Other Hot Drinks Organic Nectars (25-99% Juice)

Organic Chocolate-based Flavoured Powder Drinks

Organic Plant-based and Malt-based Hot Drinks

Organic Beverage Category Breakdown




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Organic Baby Food Organic Confectionery Organic Cream

Organic Milk Formula Organic Chocolate Confectionery Organic Flavoured Milk Drinks

Organic Dried Baby Food Organic Sugar Confectionery Organic Fromage Frais and Quark

Organic Prepared Baby Food Organic Sugarised Sugar Confectionery Organic Milk

Organic Other Baby Food Organic Sugarised Boiled Sweets Organic Reduced Fat Milk

Organic Bakery Products Organic Sugarised Pastilles, Gums, Jellies and Chews

Organic Standard Milk

Organic Biscuits Organic Sugarised Toffees, Caramels and Nougat

Organic Powder Milk

Organic Bread Organic Sugar-free Sugar Confectionery Organic Sour Milk Products

Organic Breakfast Cereals Organic Dairy Organic Non-Dairy Milk Alternatives

Organic Cakes Organic Chilled and Shelf Stable Desserts

Organic Soy Drinks

Organic Canned/Preserved Food Excluding Ready Meals, Soup and Pasta

Organic Soy-based Chilled and Shelf Stable Desserts

Organic Soy Milk

Organic Chilled Processed Meats, Fish/Seafood and Lunch Kit

Organic Dairy-based Chilled and Shelf Stable Desserts

Organic Other Non-Dairy Milk Alternatives

Organic Cheese

Organic Condensed/Evaporated Milk

Organic Packaged Food Category Breakdown




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Organic Yoghurt Organic Pasta Organic Nuts

Organic Soy-Based Yoghurt Organic Ready Meals Organic Sweet and Savoury Snacks Excl Nuts and Fruit Snacks

Organic Dairy-based Yoghurt Organic Rice

Organic Dessert Mixes Organic Sauces, Dressings and Condiments

Organic Frozen Processed Food Excluding Ready Meals, Pizza, Soup and Noodles

Organic Snack Bars

Organic Ice Cream Organic Fruit Bars

Organic Noodles Organic Granola/Muesli Bars

Organic Oils and Fats Organic Other Snack Bars

Organic Butter Organic Soup

Organic Olive Oil Organic Spreads

Organic Regular Spreadable Oils and Fats

Organic Spreads excl Honey

Organic Vegetable and Seed Oil Organic Sweet and Savoury Snacks

Organic Fruit Snacks

Organic Packaged Food Category Breakdown II



EastAgri Annual Meeting BEST FOOD · EastAgri Annual Meeting BEST FOOD: HOW TO PRODUCE BOTH QUALITY...

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