Strong growth of the organic market in Italy

The organic market in Italy is still growing despite the global crisis and in spite of a drop in conventional food sales. While conventional goods in supermarkets declined by 1.6 % in 2010, sales of organic food grew by an impressive 11.6 % in the same year. This growth even surpassed the increase of 6.9 % in the previous year, compared with a decline in conventional goods of 1.3 % (source: Ismea). In the first two months of 2011, sales of organics in Italy kept on rising. In mainstream supermarkets, sales increased by 13 % for packaged goods and by 11.6 % for fruit and vegetables. The organic supermarket chain NaturaSì also increased its net sales by almost 20 % in 2010, and more than 1,100 specialised shops helped organics to grow even further. (Picture: Cuore Bio store)

The most important specialised stores in the organic sector in Italy belong to Ecor NaturaSì (www.ecor.it, www.naturasi.com) and offer a range of 3,800 products. The only organic chain in the country runs 88 supermarkets, two restaurants and a butcher’s shop. NaturaSì’s net sales amounted to 78 million euros in 2008 and they increased their sales to 93 million euros in 2009 (+ 27 %), and again to 112 million euros in 2010 (+19.8 %). Part of the group are the wholesaler Baule Volante and Di Vaira Farm, a 500 hectare farm in central Italy (we reported earlier). The company runs the Cuore Bio marketing project that involves more than 250 independent organic shops all over Italy. The Ki Group is a 30-year-old wholesale company and runs the “Grandi marche bio” (organic brands) marketing projects. (Picture: Range of Ecor products at a Cuore Bio store)
 

About 1,100 independent specialised shops sell organic products, so it is hard to put an exact figure on their sales. Their strong performance, however, is down to the vast assortment of items, their large share of fresh products, prompt customer assistance and the importance of human relations. Specialised stores often have their own in-house magazines, promotions, stamps and loyalty cards. (Picture: Range of meat at Di Vaira Farm)
 

For more than 20 years, Sana in Bologna has been an important international exhibition for promoting organic products. Held as usual in September, the 2010 edition saw almost 31,000 professional visitors. As for the geographical position of Italy and its trading relationship, Sana’s commitment to the Mediterranean area is very strong. In the last two years, the Italian Trade Commission has hosted buyers from Egypt, Emirates, Lebanon, Tunisia, Turkey, Brazil, China, Japan, Russia and the USA and, meeting in a special Buyers’ Lounge, has involved more than 700 B2B. (Picture: NaturaSì at Sana)
 

The Italian Ministry of Agriculture is currently drawing up the draft of a national law on organic meals, both in the public sector and in restaurants. At this point in time, the use of a certain proportion of organic ingredients is compulsory in daily school meals in Italy, and a few municipalities even serve a 100 % organic meal. The most common organic product groups are fruit and vegetables, pasta, tomato pulp and extra virgin olive oil. Altogether, over 1 million children benefit from at least some organic ingredients in their school meals every day. The Italian organic umbrella organization is FederBio, that has a membership of eleven national or regional farmers’ associations, five national associations of processing companies, wholesalers and retailers, a national consumers’ association, nine control bodies and six cultural associations or service providers.
 

Comparing the Ismea/Nielsen survey data at the end of 2010 with the InterBio survey of national specialised retail outlets for organic foods proves that there is not only a clear difference between the average consumer of organics and the average Italian consumer but also that there are even differences between organic food consumers who shop at big retail chains and those who shop at specialised outlets. Households purchasing organic foods at supermarkets and hypermarkets have fewer members: single or two member households make up no less than 46 % of consumers at large retailers against 31 % shopping at specialised outlets. When taking into account that big retail seldom has more than 200 organic items in any given assortment on sale, it’s evident that the difference in the volumes of a single person shopping at a big chain and those of a four person household shopping at an outlet with several thousand items to hand can be truly significant.
 

A reworking of the Ismea/Nielsen survey figures shows that three quarters of organic food consumers at big retail chains are not habitual purchasers and that the picture is precisely the opposite for the specialised outlets, where more than 75 % go to their outlets once or twice a week. The rate of purchases among shoppers who go to specialised outlets well stocked with organic foods is high: 49 % say they buy “a lot” and 31 % “everything or almost everything” organic. Different too is the age-group profile of the consumers at these two kinds of outlet: given the 34 % of degree holders and 53 % of higher school graduates among consumers shopping in the specialised channel, it’s reasonable to assume we’re looking at above average incomes. The main reasons customers give for buying organics are health and food safety.

 

Sales of organic products in mainstream supermarkets in 2010

All figures for products have been rounded

(Source: Ismea, AcNielsen)

With an average increase of +11.6 % in the sale of organics above, the 20 best selling organic items in mainstream supermarkets in Italy in 2010 increased as follows: