Blog B2BIO - Increase in the consumption of bio vegetables in Spain

Today we share an article that appeared recently in the digital newspaper "El Confidencial”. It talks about the increase in the consumption of bio vegetables in Spain.

The large supermarket chains and the leading food companies were affected by the creation of new own brands with lower prices in the establishments. Now they continue growing and consolidating among consumers while their competitors have reacted by looking for their weak flank: organic products and bio products, two segments on the rise and in which the possibilities of leadership are largely resolved.

The revolution consisted of modifying a totally different concept to the phenomenon that was denominated as 'white marks' in the previous decade, since now they are not manufactured under cord by the food companies, but they produce them in greater measure, specifically for them . To counteract this advantage, Carrefour, El Corte Inglés, Eroski and Lidl also bet not only for their brands, but also for a trend that is growing in Spain: organic vegetables and bio and local agriculture. Why? Simply because it is associated to health: free of pesticides and direct from the garden and because it is the product of which some chains have a smaller presence, a good way to differentiate.

It is associated with health, free of pesticides and a good price.

The opportunity is unbeatable, since it turns out that Spain is the country with the largest number of hectares devoted to organic agricultural production in Europe, ahead of Germany, France and Italy, although these exceed us greatly in terms of consumption. However, the trend in recent years is growth: we have the garden, so why not take advantage of it? One of the most responsible for the change has been the French chain Carrefour. The incorporation to the Board of Directors of the Danone CEO a few months ago began with the announcement of a greater offer of these products.

Danone had bought the US organic company White Wave as part of a strategy to introduce a line of products associated with healthy food according to the trend among consumers, as announced by the French parent. It is considered a good opportunity to raise positions against its competitors. The initiative has not been exclusive to Carrefour, other giants such as El Corte Inglés, Eroski and Lidl have also joined.

The latest report of 2018 FiBL & IFOAM Organics International indicates that towards the end of 2016 there were 13.5 million hectares in Europe of organic type in the hands of 370,000 producers, of which 295,000 were from EU countries. In the whole of Europe, 2.7% of the agricultural area was organic compared to 6.7% of the EU. The country with the largest number of hectares is precisely Spain, with 2 million, followed by Italy (1.8) and France (1.5). However, the tables change in terms of consumption. Germany leads the market with sales valued at around 10.4 billion dollars, followed by France (7.8), Italy, the United Kingdom, Switzerland and Sweden.

The main reason, according to the study, is the concern for healthy products. Excessive exposure to pesticides has been linked to a number of diseases including reproductive diseases-infertility-nervous system and cancer. The other reason that arises are the concerns about the environment and sustainability. A study by Statista explained that most Germans buy these products because they believe they pollute less and generate less pollution. Another AgenceBio survey showed that 58% in France said they bought these products because they considered that they were less damaging to the environment.

In Spain it is in full expansion: it grows 14% in 2017 with respect to 2% of the traditional market

In Spain, its consumption tends to rise. Although it is already the tenth in the world, the weight in the shopping cart is still quite discreet, which is why experts believe it will continue to grow. This is explained by the report 'Myths and realities of bio products', a study by Kantar Worldpanel in association with the Catalonia La Pedrera Foundation, in which they explain that "it is clear how the market for organic food products in Spain is in full expansion, with a growth of 14% in 2017 with respect to the 2% growth of the traditional food market. However, the level of penetration of organic products is still low in Spain (42%) compared to other European countries (80%) “.

Great growth in sales of organic products in Spain

This is the reason why not only Carrefour, which has a specific space to identify these products, but also chains such as Lidl, which were already betting on the frescoes, are including them. The bet of the supermarkets is piercing, according to the study of Kantar, although the bulk of sales "continue to be carried out in specialty stores, with 40% of total organic sales, and the growth of 2017 is mainly concentrated in discount supermarkets with 42% ", which is not the profile of Carrefour or El Corte Inglés.

The main barrerra for its definitive takeoff as in other EU countries is the price

It is mainly due to the price of organic products, since "it continues to be one of the major barriers in the purchase decision of households." Thus, 43% of the study's answers indicate that the price would be the first characteristic that would make them decide the purchase of an organic food product followed by flavor (36%) and concern for the environment (12.3%) ". That is to say, it is confirmed that the consumer prioritizes the quality-price ratio with respect to the sustainability of the product. Finally, he points out that consumers "prefer to buy products of proximity (77%) to organic products (23%)", which is the other segment to which hypermarkets and supermarkets are directed ".