Following higher growth rates, the global organic food market has slowed down to single-digit figures. The UK, which registered 2% growth in 2008, has been affected most, as consumers wield less spending power.
As growth has slowed, consumer expectations have risen. Organic Monitor claims “Organic Plus” strategies, such as ethical sourcing, traceability, carbon footprint, sustainability and corporate social responsibility, are even more important to move the market forward.
For example, in the UK, Green & Black’s organic chocolate has seen success due its “ethical” positioning, as it is made from ethically sourced cocoa in developing countries.
The importance of ethical sourcing is leading some organic food companies to invest in developing, and even war-ravaged countries, according to Organic Monitor, which says, “Palestine-based Canaan Fair Trade was financed by such social investment. The company is a major success story in a region that has been ravaged by conflict for decades. This year, it became the first company in the world to introduce certified organic and fairtrade olive oil.”
AgroFair, a supplier of organic and fair trade fresh produce in Europe, which received the Dutch Award for Corporate Social Responsibility, has invested in Africa and Latin America.
Offsetting carbon emissions is another corporate strategy that could pay dividends. EOSTA has launched several climate-neutral fruits and vegetables in Europe. Its product range comprises Egyptian oranges, South American top fruit, New Zealand kiwi fruit, South African citrus fruit and Dutch tomatoes. The products are marketed via the Nature & More scheme which enables consumers to trace organic products to the farms where grown.
Other companies are focusing on sustainability and locally grown products. Hipp, the largest organic food processor in the world, according to Organic Monitor, uses renewable energy to make organic baby food, is cutting carbon emissions and recycles 97% of its waste.
As the organic food market advances, certification agencies are responding by integrating aspects of sustainability into their standards. IMO and Ecocert have introduced fair trade standards that complement organic production methods. The EcoSocial standard of IBD which covers biodiversity, is gaining popularity in Latin America. Others like Soil Association are looking at reducing the environmental impact of organic food products.