Organic Is Good for You!
Sales of organic food are very much on the up in Western Europe and the US. Read the first report in our new series on organic food.
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The organic food industry in Western Europe and the US has been experiencing a prolonged period of high single-digit to low double-digit sales growth—and, on the back of ongoing health, food safety, and environmental and animal welfare concerns by consumers—Rabobank expects this trend to continue. Until 2025, organic food sales in Western Europe and the US are forecast to grow (CAGR) by 6.7 percent and 7.6 percent, respectively. That is roughly three times faster than overall food consumption growth. Food producers should increase their focus on organic, through new products and brands, or through the reformulation of existing products to help grow their top lines. This will also help them to position themselves as responsible businesses. Short-term growth in the US is somewhat higher, but a prolonged, much higher growth rate is unlikely, as the supply chain is currently not sufficiently established.
This is the first report in a series of reports on the organic food industry. Future reports will go into more depth on supply chain issues, distribution channel trends, and the market structure of Western Europe and the US.