Organic products have come a long way since small
groups of consumers started buying organic food directly from farms or from
small health food shops, where quality was secondary as long as the products
were organic. In the early 1990s supermarket chains started paying systematic
attention to organic food. Year after year they have taken over market share
from the specialized shops, to the point where growth in the market share of
organic food today is mostly driven by them.
In some countries supermarkets now account for more
than 50% of organic food sales, and organic products are on offer in all Western
countries. Increasing numbers of farmers in developed countries have entered
organic farming, something that has even led to over-production of certain
crops. It is estimated that well over 5 million hectares of land in Europe is
cultivated organically. Austria is the highest with as much as 13% of the total
farm area under organic cultivation. The market share for organic products in
Western countries ranges between 0.5% and 3% for food generally, but varies
widely for different product groups. For instance, baby food in Germany and
Denmark is reportedly more than 50% organic, and organic dairy products are best
sellers as well, sometimes with a market share of 25%.
The United States remains the largest single market
for organic products, followed by Germany. Consumption growth rates are high in
most European Union countries but have been slowing in recent years and sales of
organic products still comprise only a rather small part of the total food
market.
Certainly the world market for organic coffee is
difficult to estimate: facts are difficult to come by and aspiring producers
must also be careful not to confuse growing insistence on ISO (International
Organization for Standardization) and GAP (Good Agricultural Practice)
certification, with demand for pure organic coffee as such. Of course the large
supermarket chains all carry their own range of organic products and in so
doing they are undoubtedly raising both the profile and the market share of
organics. However, not necessarily at the sort of premiums that producers may
believe exist because most large chains do not hesitate to use their buying
power to cap prices.
Nevertheless, the growing presence of organic coffee
on supermarket shelves has prompted large roasters to evaluate the market
potential with at least one organic brand in some countries. However, for the
time being organic coffee still lies mostly within the domain of specialized,
smaller roasters and a number of large supermarket chains.