Market Trends of Europe Organic Food & Beverages Industry
Growing Demand for Clean-label Products
The consumer preference for innovative flavors, health benefits, convenience, and alternative natural sources of nutrient supplements has augmented the clean-label food and beverage products market across the region. Also, the consumer interest in identifying the ingredients present in food and beverage products has triggered the growth of the organic food and beverage market. European consumers are highly concerned about the long-term effects of the food products they are consuming, in terms of nutrition content and their impact on health, environmental sustainability, sourcing, and social responsibility. This has triggered an increasing demand for organically sourced food and beverage products in the European region. According to the Soil Association, based on purchases made through numerous retail stores, dairy had the highest percentage of retail sales in the United Kingdom (UK) in 2021, accounting for 25.2% of total sales, followed by produce, which accounted for around 22.2% of total sales.
Germany holds a Prominent Market Share
In Germany, the industry has witnessed a cut in synthetic ingredients due to the wider use of botanicals, the replacement of emulsifiers with enzymes and other texturizers, and the rising demand for natural products. This changing trend and demand for nutritive products are expected to further fuel the demand for organic food and beverage products. Furthermore, with the growing aging population in Germany consumers are more inclining towards nutritive products due to rising health concerns, and there is a continuous rise in demand for specialty ingredients in functional and organic beverages in the country.
Furthermore, according to the investment group, Germany and Trade Invest (GATI), German consumers are turning health conscious and are looking to confectionery that is low sugar, fair trade, and organic. As a result of which, the demand for sustainable products is on the rise in the country. According to Arbeitskreis Biomarkt, in Germany the sales of organic food increased over the past ten years, rising from EUR 6.64 billion in 2011 to over EUR 15.9 billion in 2021. This trend is expected to last a while due to rising customer interest in the food production process and awareness about adopting a healthy lifestyle.
