Section A -- 35 Marks. Organic Food -- Environment concerns impacting the way we shop 2
Reaction of distributors to the changing trends in consumer behaviour. 4
Supermarket Wars -- How do they stack up ? 5
Specialised Organic Food Stores 6
Section B -- 45 Marks 6 pages 7
Importance of Certification Symbols 7
Section A -- 35 Marks. Organic Food -- Environment concerns impacting the way we shop
The industry I have chosen for this report is the organic food industry and in particular the distribution channels for the food industry in Ireland and how they have reacted towards the changing in trends in consumer buying behaviour. Recent European scares regarding meat, BSE, and the bad publicity surrounding GM foods have been drivers of the organic food revenue.
There is a growing demand for organically produced food in Ireland. The level of growth has accelerated exceedingly in the last few years. The rise in the area that is being farmed organically, which has more than doubled recently has resulted in increased volumes of Irish organic food becoming available, although like most European markets imports are prominent especially in the fruit and vegetable, spices and pasta markets.
28 per cent of Irish consumers buy organic food at least once a month.
On average buying households spend around £20 per month on organic food.
Irish consumers spontaneously associate organic food with being produced without chemicals and pesticides (57%) and being health and natural (37%).
60 per cent of purchases take place in supermarkets.
83 per cent do not recognise any of the main organic symbols in Ireland.
68 per cent of those who do not buy organic food say it is to expensive.
Fruit and vegetables are the organic food products most likely to be tried by "non buying" consumers first followed by meat and dairy products.
(sources Bord Bia Report 2001)
This latest report by Bard Bia identifies clear potential for the development of the organic food sector in Ireland. It is also clear that significant challenges confront the sector in fully realising this potential. Bard Bia's market development and promotional programmes, at home and overseas, equally accommodate the development of opportunities in growth market segments such as organic foods. In addition, specific programmes and activities have been designed to further support the development of the sector.
The increasing number of food scares across Europe over recent years has led to a strong rise in consumer demand for food products that have been produced without the use of pesticides or other chemicals and in more recent times free from genetic modification. This has meant that increasing numbers of consumers have been turning to organic food as a source of good quality healthy food. Given the trends that have been particularly evident over the last few years this development is likely to accelerate further over the next decade.