Organic is a major challenge to meet consumer demand, improve the image of its brand and enhance its offer. These are the lessons learnt from the LSA/Léa Nature study.
Facts & Figures
- 75% of food supermarkets would like to welcome more organic specialist brands to their shelves
- 73% of specialised brands would be willing to offer national organic brands on their shelves
Far from being a mere fashion trend, 60% of the retailers surveyed in the LSA/Léa Nature study consider organic farming to be a major issue in distribution. And its consumer demand that drives retail professionals to sell organic products in the first place (77%). Moreover, 57% of food supermarkets consider this to be a growth lever. Among specialists, personal beliefs are cited by 65% of respondents as the driving force behind their orientation.
It is worth noting that 90% of respondents expect an increase in the proportion of organic products in their sales. Almost two out of three even rate this increase at more than 10%, a figure raised by food supermarkets (71%) and larger companies. To drive this growth, nearly half of respondents (44%) believe that specialist brands, private labels and national brands will all have a role to play in this dynamic.
The challenge for organic farming is threefold: supply, consumer confidence and a more demanding brand. To achieve this, professionals will have to face major challenges, including the availability of raw materials (67%) and the preservation of consumer confidence (46%). To a lesser extent, the tariff increase (34%) and the fluctuation in the price of raw materials (26%), particularly for specialists (53%), will be additional challenges.
In order to preserve consumer confidence, 28% of the sector’s players have already developed additional guarantees beyond the requirements of the organic label (71% in specialised brands) and 25% are considering it.
Furthermore, while food supermarkets stress the role of private labels in demanding an organic approach to commitment and quality (37% versus 29% overall), for all types of brands combined, retailers consider that specialist brands are the most likely to be the main leaders in the future.
Methodology
Léa Nature joined forces with LSA to carry out this study, which was conducted online from 10 to 27 July 2018 with 232 decision-makers in food supermarkets, organic retailers and superstores.