Organics in Finland reach €215m

The Finnish organization Pro Luomu has published the latest data on the organic sector in Finland. The market is developing well – consumption of organics is increasing and products are widely available in retail. Consumers mostly buy organics in conventional supermarkets and are mainly living in the area of Helsinki. The use of organics in the HoReCa (hotel, restaurant and catering) sector still needs to be stimulated. In recent years, the area of organic land has been expanding steadily. 60% of organic grain was exported as flakes, bread and flours. Organic wild food collection plays a major role in the country.

(Picture: Organic stall Satumarja in the Hakaniemen market hall in Helsinki)

Statistics for the sale of organics have not been compiled yet in Finland and the size of the market can therefore only be estimated. While the organic market was worth €163m in 2011, it grew to €202m in 2012. In 2013, this growth slowed somewhat. Organic sales amounted to €215m in that year. However, the organic market grew faster than conventional sales in retail shops. In 2013, the market share of organics on the total market was believed to be 1.6%. Organic turnover of €330m is the aim for 2015 (Source: Pro Luomu, estimates based on data collected from shops). (Picture: Ruohonjuuri - largest health food store in the pedestrian area downtown Helsinki)

In retail, the selection of organics is growing. The two biggest groups in Finland are S-group and K-group, which have a share of about 80% of the total food sales. These are also the biggest players in the organic sector. In the biggest Finnish retail shops, some 3,000 organic products are offered, of which about 60% are of domestic origin. Organic milk is the best-selling organic product, with about a third of all organic sales coming from dairy products. Other important product groups are fruit, vegetables, bakery products and eggs. In some of these product groups, the market share of organics is close to 10%. (Picture: S-Market)

Consumers in Finland mostly buy organics from conventional retail (88%). They also get their products from markets (27%), specialized shops (21%) and farms (12%). Online shops and food communities have so far only played a minor role but could become more significant in the future (Source: TNS Gallup Oy / Organic Barometer). (Graph: Consumers were asked where they bought organics) 

The most frequent users of organics are found in the Helsinki area and in families with small children. About a quarter of Finns buy organics frequently. They appreciate their purity, environmentally friendly production and good taste. More than half of consumers estimate that their consumption of organics will increase in the near future. (Graph: Consumers were asked about their purchasing frequency of organics)

Growth is, however, stabilizing. The main factor against an organic choice is the price. Information about fair producer prices and differences between organic and conventional products would help to increase consumption. (Picture: Advertising organic cider at a tram stop)

Finnish professional kitchens use relatively few organic raw materials so far. Flakes, flours and bread are most popular there. In the HoReCa sector, the value of organic sales was about 0.6% in 2013. The biggest share of organics (10%) can be found in daycare centers.

13% of the Finnish municipalities have made a strategic decision to raise the share of organics in their catering, based on the Finnish Government development programme for the organic product sector as well as on the resolution passes by the Finnish Government on the promotion of cleantech solutions (sustainable solutions in environment and energy) through public sector procurement. There is public pressure to go organic. However, the budget of public institutions is limited and there is no extra money. This is why the focus is on products where the price premium is low. Organic products for public catering should also preferably be domestic. (Picture EkoCentria/Tero Takalo-Eskola: Child enjoying a healthy meal)

In recent years, the area of organic land has been expanding steadily, but the number of farms has decreased slightly. Total organic land amounted to 206,000 hectares in 2013 (including farms in conversion), an increase of 4% on 2012. Organic land now comprises 9% of the total agricultural land in the country. The official government target is that 20% of the total cultivated area is organic in 2020.

The harvested area of organic crops was 42,700 hectares and the total amount of organic grain produced was 90,500 tonnes– an increase of 8,000 t on the previous year. The crops of organic grain constitute 2.2% of the total grain production in Finland. Expert evaluation shows that 60% of organic grain was exported as flakes, bread and flours, and as much as 80% of the main crop - oats - was exported. (Picture: More organics away from home - outdoor café in Helsinki)
 

In 2013, 4,284 farms were managed organically in Finland. At 49 hectares, the average size of organic farms is slightly larger than the average size of all Finnish farms. In 2013, the number of livestock farms amounted to 814, with the majority producing beef or milk. There are only 13 organic pig farms and one organic poultry farm in Finland. Organic eggs are produced by 34 farms. Finland has the largest area in the world approved for organic wild food collection (about 9 million hectares, of which most is situated in Lapland). Blueberry and lingonberry are the best-selling organic wild berries. In 2013, about 860 t and 760 t were sold respectively. Organic cloudberry sold less than 5 t. (Picture: On organic safari with photographer and organic expert Erkki Pöytäniemi)

Pro Luomu was established in spring 2011 to build and strengthen cooperation in the organic industry. The organization promotes target-oriented development and growth by solving bottlenecks and by meeting demand with the supply of organics in Finland. All actors in the value chain are represented from producers to distributors, like supermarkets and catering companies. In March this year, the organization has published Organics in Finland 2013. The full publication is available (in English) here.