An Odyssey Into a Parallel Universe: Organic Processed Food in Europe

Rabobank expects the European organic processed food market to continue to outgrow the ‘regular’ market as consumers look for easy ways to buy what they perceive to be healthier and more sustainable foods.

Nevertheless, market value growth rates for organic processed food will slow down, to around 3 percent to 4 percent CAGR (2017-2025), compared to 6 percent to 7 percent in the past years. We think this slowdown of value growth will be mainly caused by dropping price premiums of organic processed food as the sector grows, intensifies, and the influence of regular supermarkets and discounters increases.

Consolidation in European organic processed food will be driven by larger specialised manufacturers who can create efficiencies by adding to their existing platform – but who may become prey themselves.