Significant market growth of the organic sector in Italy

Total sales of organic products in supermarkets were about € 430 million in the year ending in June 2010. Sales of processed goods in Italy increased by 9 % in the first half of 2010 and various other product categories also did well. At Sana, the international fair for natural products in Bologna in September, the Italian service institute for the agricultural food market, Ismea, revealed important data from the organic sector in Italy.  Ecor had a stand at the fair and announced that their 260 B'io stores have changed their name: they now are called Cuorebio – organic heart. Ecor, in cooperation with Novamont, has developed a new sustainable packaging for salad, made of Mater-Bi, which was also introduced at Sana. (Picture: Cuorebio store in Italy)

Consumption of organic products in Italy increased in the first half of 2010. According to the latest data presented by Ismea, sales of processed products grew 9 % in the same period – continuing the positive trend of 2009 (+ 7 % on 2008) and 2008 (+ 5 % on 2007). Organic products that increased in the first half year in 2010, and maintained the trend of recent years, were fresh and processed fruit and vegetables (+ 27 % 2009 on 2008, and the figure for the first half of 2010 compared with the first half of 2009 was +1 %), beverages in both periods (+ 6 %), eggs (+ 22 %, + 8 %), honey (+ 14 %, + 14 %), bread (+ 9 %, + 19 %), and sausage ( + 92 %, + 20 %). (Picture: modern NaturaSì supermarket in Italy)
 

In spite of a previous negative trend, products that performed well in the first six months of 2010 were milk and cheese (- 2 % 2009 on 2008, + 11 % in the first half of 2010 compared with the first half of 2009), breakfast products (- 3 %, + 17 %), baby products (- 16 %, + 31 %), oil (- 3 %, + 10 %), pasta and rice (- 2 %, +8 %), ice cream and frozen products (5 %, - 12 %), spices (-12 %, + 22 %), and dietary products (+ 15 %, - 8 %).

The most important products consumed in 2009 and in the first half of 2010 were eggs, followed by fresh milk, yoghurt, juices, soy drinks, honey, olive oil, pasta made from wheat, homogenized products, and jam. According to Ismea, the prices for organic products in the first six months of 2010 decreased by 2.3 % compared with the same period in 2009. The demand is, therefore, more elastic. Sales of organics in Italy amounted to 1,970 million euros in 2008, which equates to a per capita spend of 33 euros. (Picture: Products of Abafoods' range)

Total sales of organic products in supermarkets were about € 430 million in the year ending in June 2010. According to the AcNielsen/Ismea panel, in spite of the credit crunch, in the first 6 months of 2010 compared with the first 6 months on 2009 the value of supermarket sales of organic products grew by 9 %, after an increase in 2009 of 6.9 %. All the main supermarket chains sell organic products, in some cases with a range up to 350 items, baby food included.

In supermarkets, groceries account for 40 % of sales, processed fresh products for 18 %, fruit and vegetables for 38 %, meat & poultry for 3 % and seeds for 1 %. In Italian supermarkets, the share of organics in total sales is between 3 % and 4 %. Different from in many other European countries, in Italy specialised shops are the main channel for selling organic products. There are more than 1,150 specialised stores, mostly in Northern and Central Italy (2009). (Picture: Conad, conventional supermarket in Italy)
 

NaturaSì is an organic supermarket chain at national level with about 80 shops, 20 of which are located in Rome and Milan, offering a range of about 4,000 products, a quarterly magazine and a loyalty card programme with about 70,000 cardholders. NaturaSì runs two fully organic restaurants, too. Sales in the specialised channel were about 600 million euros in 2009. In the first 6 months of 2010 they grew from 15 % to 20 % (with a higher growth in organic supermarkets and in independent shops involved in wholesalers’ marketing projects), which is the same trend as in 2009.
 
Sales of organic products in the first half of 2010 (compared with the first half of 2009) increased in the North West and North East by 6 % and 11 % respectively. Especially positive is the trend in the south and Sicily: after a decrease of 12 % in 2009, an increase of 21 % was achieved in 2010. The areas showing lower growth were the centre of Italy and Sardinia - from + 17 % to + 8 % this year. 

 
According to BioBank’s data, organic products were offered via direct sales in 2,176 companies in 2009 (2008: 1,943). Organics are also offered on 1,222 farms that provided farm holidays (2008: 1,178). About 250 open air organic markets are held in Italy, mainly in the summer. Some are all-year-round and are often linked with shows, stage plays, concerts, conferences, etc. Some of these markets have been held for more than 20 years.

A special feature of Italy is that providing organic school meals is compulsory: about 900 municipalities serve organic products to more than 1 million children every day (140,000 only in Rome). About 120 e-commerce websites and as many as 1,000 box schemes also exist, mostly run by GAS (buying groups). (Picture: box scheme by Bioexpress)

Around 500 organic restaurants serve meals all over Italy. Since 2003, every Ikea restaurant serves organic meals. In 2009, Ikea bought 1,840 tons of organic products, serving 380,000 organic menus for children, 570,000 organic pasta dishes, 545,000 organic sandwiches, 610,000 portions of organic chips, 53,000 organic hamburgers, 50,000 organic pizzas, and 150,000 organic vegetarian dishes.
 

The trade exhibition Sana, established 1989, is held every year in September in Bologna. To encourage communication about organics, Sana runs a national prize for journalists (the first prize is € 3,500; the second prize is a weekend in a resort with an organic restaurant awarded 3 stars by the Michelin Guide, and the third prize is a week on an organic tourist farm).
 

In 2009, there were 43,230 organic producers (2,564 of whom process their products), 5,223 processors and 260 importers. 1.1 million hectares are under organic management in Italy; about 66 % of the organic agricultural land is fully converted. Large parts of the organic area are located in the south of the country, for instance Sicily (206,546 hectares), Basilicata (112,289 hectares) or Puglia (140,176 hectares), while most of the manufacturers and wholesalers are  located in the north of the country: Emilia-Romagna (721), Lombardy (507), Veneto (484), Tuscany (427) and Piedmont (353). Key crop categories are cereals (250,000 hectares), field fodder crops (180,000 hectares), olives (140,000 hectares) and grapes (43,000 hectares). (Picture: harvest at Primavera)
 

As stated above, the largest chain of organic stores in Italy, operated by EcorNaturaSì SpA, has changed its name - B'io stores have become Cuorebio stores. The renewal of the image is testimony to the route taken by the stores in recent years: creating a dynamic environment that has seen not only the expansion of the number of B'io stores but also intensification of their efforts to promote organic farming in Italy, enhance the work of small organic producers, and inform people about environmental issues and health. Courage and passion are the core values of Cuorebio. 
 

Various initiatives show that Cuorebio's stores are more than organic. At Cuorebio, customers can do one-stop shopping. Besides selling organic, biodynamic and fair trade products, local sourcing plays an important role. For the company, it is important that not only the products are eco-friendly but also the interior of the store. Cuorebio wants to show its dedication to the environment and people in all ways possible – so high quality is offered at fair prices for consumers and producers. Cuorebio promotes transparency throughout the chain. Especially with the so called "Twelve Months of Transparency", big efforts are made to connect producers and consumers. Company profiles, stories and various projects are all presented to the public.
 

Loose items (picture to the right) are available in many stores to save on packaging and on price, as well as cleaners from the tap (picture to the left). Since 2004, shopping bags have been available in Mater-Bi or organic cotton, and paper for fruit and vegetables is certified FSC (Forest Stewardship Council). Bags and gloves come in bio-polythene, a material that is derived from the starch in potatoes, and the uniforms of the employees are all made from organic cotton. The furnishings of the stores are certified FSC and protected with paints made from natural oil. Energy-saving refrigerators are used to reduce consumption by about 30 % and lighting is energy efficient. The paint on the walls is made entirely of minerals and natural substances, so they are not polluting either during production or during their application. They are classified as "food" and they are washable and non-flammable. The paper used in the stores for informational and promotional material is 100 % recycled waste paper, carefully selected and without using chlorine.
 

260 stores belong to Cuorebio. The first outlet was opened in 2002, and 16 new opening are planned for 2010. About 3,000 products are available in the stores, and more than 4,000 items are listed (1,275 non-food-products, 1,912 dry products, and 826 fresh products). 700 people are employed, and the company achieved a turnover of more than 100 million euros in 2009.

Ecor is the leading distributor of organic products in Italy and supplies over 800 natural food shops – including the Cuorebio stores and 72 supermarkets under the NaturaSì banner. High quality, care in the selection of ingredients and consideration of consumer needs and prices are the key features of the over 400 packaged and fresh food products, non-food products and cosmetics of the Ecor brand.
 

The first non-GMO eco-tray for the ready-to-use IV range of salads (picture below) is the innovative solution that further enhances the range of Mater-Bi products for food packaging. Quality and environmental sustainability, these are the key elements of the non-GMO, biodegradable and compostable Mater-Bi packaging for salads - the result of collaboration between Novamont and Ecor. The experimental project is a first in Italy, and the first in Europe to be used for ready-to-serve salad produce of the IV range with Demeter certification, attesting to its biodynamic farming origins. The idea behind the experimental project was to find packaging for the IV range of products which, besides being suitable to preserve fresh produce and give it a longer shelf-life, is also sustainable, i.e. it limits the environmental impact of the materials used. Added value becomes a matter of consistency in the case of biological and biodynamic products.
 

The convergence between Ecor, Novamont and the biodynamic agricultural company Filogea means that a market sector in constant growth, such as that of pre-washed packaged salads, can now offer consumers a 100 % compostable pack. Besides using renewable resources and ensuring the optimal conservation of the product, the innovative packaging consisting of cardboard “spread” with Mater-Bi and packaged with Mater-Bi film can be thrown away along with the kitchen waste. Mater-Bi, the bio-plastic developed by Novamont, is naturally biodegradable and compostable in compliance with the Italian standard UNI EN 13432 and can guarantee the same strength and performance as traditional plastics, but it is made of renewable resources of agricultural origin. It reduces greenhouse gas emissions and the consumption of energy and non-renewable resources, thus completing a virtuous circle: the raw materials of agricultural origin return to the earth through processes of biodegradation and composting without releasing pollutants. The new application developed by Novamont and Ecor was also unveiled at SANA in Bologna.