Fresh growth: The health benefits of organic produce spur demand and lead to revenue expansion

The Organic Food Retailing industry includes retail sales of organic food and beverages by specialist organic supermarkets, farmers’ markets, independent retailers and home delivery. This industry does not include conventional supermarkets such as Tesco, Asda and Waitrose. The term organic refers to a method of farming that uses only natural pesticides and fertilisers and adheres to a high level of animal welfare and crop rotation. Products sold by the industry include fruit, vegetables, meat, fish, dairy products and beverages.The industry has operated in favourable conditions since the start of the past five-year period...read more.

Industry Statistics & Market Size
Revenue
£820.8m
Annual Growth 14-19
3.0%
Forecast Growth 19-24
Profit
Employment
7,253
Businesses
600

Industry Threats & Opportunities

  • Innovative new products, such as box schemes, have spurred new entrants into the industry
  • Box schemes have become increasingly popular with consumers, and have outperformed the wider industry
  • Employment numbers are expected to grow as operators continue to focus on customer service
  • Industry Report - Industry Key Buyers Chapter

    The industry is characterised by a low level of market share concentration. The four largest retailers - Fresh & Wild, Abel & Cole, Riverford Organic Farmers and Planet Organic - are projected to account for 31.8% of industry revenue in 2018-19. The industry has become increasingly concentrated as the sheer size and supply chains of major players make it difficult for other operators to compete.Despite this, the industry remains fragmented, with a large number of smaller, private-owned and -operated companies. These include box-scheme retailers and farmers' shops and markets. The majority of box-scheme retailers have one outlet. However, some have expanded their distribution network to deliver products to a greater area. The...purchase to read more.

    Additional Insights for the Organic Food Retailing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Organic Food Retailing Industry are

  • Ability to pass on cost increases
  • Having a loyal customer base
  • Having an extensive distribution/collection network
  • IBISWorld analysts also discuss how external factors such as Health consciousness and Public concern over environmental issues in the Organic Food Retailing industry impact industry performance..

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    What's in this report

    What is the Organic Food Retailing Industry?

    Industry participants concentrate on selling organic food and beverages through both bricks-and-mortar stores and online portals. They are specialist natural and organic food retailers. Conventional supermarket chains and convenience stores that retail organic goods are excluded from the industry.

    Industry Products
  • Dairy products
  • Fruit, vegetables and salad
  • Baby food
  • Beverages
  • Meat, poultry and fish
  • Eggs
  • Industry Activities
  • Organic fruit and vegetable retailing
  • Organic beverage retailing
  • Organic meat and meat product retailing
  • Organic dairy product retailing
  • Organic grains and starch retailing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Health consciousness
  • Public concern over environmental issues
  • Demand from supermarkets
  • Consumer confidence index

  • Current Performance
  • Health consciousness
  • Ethical consumption and disease concerns
  • Innovative products
  • External competition
  • Profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Continued growth
  • Industry expansion
  • Competitive constraints
  • Future concerns
  • Table: Organic Food Retailing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Organic Food Retailing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Full-Service Restaurants
  • Consumers

  • Key Selling Industries
  • Dairy Product, Egg & Edible Oil Wholesaling
  • Fruit & Vegetable Wholesaling
  • Meat Wholesaling
  • Poultry Meat Processing
  • Vegetable Growing
  • Yoghurt & Other Dairy Product Processing

  • Products & Services
  • Fruit, vegetables and salad
  • Meat, poultry and fish
  • Other
  • Dairy products
  • Baby food
  • Beverages
  • Eggs
  • Chart: Organic Food Retailing Industry Products and Services Segmentation

  • Demand Determinants
  • Consumer preferences
  • Weather and external competition

  • Major Markets
  • Fifth income quintile
  • Fourth income quintile
  • Third income quintile
  • Second income quintile
  • First income quintile
  • Chart: Major Market Segmentation for the Organic Food Retailing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Organic Food Retailing

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Organic Food Retailing Industry

  • Industry Globalization
    Fresh & Wild Ltd, Abel & Cole Ltd, Riverford Organic Farmers Ltd,
  • Table: Fresh & Wild Ltd - financial performance
  • Table: Abel & Cole Ltd - financial performance
  • Table: Riverford Organic Farmers Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Organic Food Retailing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Organic Food Retailing Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Box Scheme
  • A scheme where consumers receive boxes of assorted fruit and vegetables sourced directly from farmers.
  • Conversion
  • The process of a farm becoming a fully organic producer. It can take up to three years for the relevant standards to be achieved. An organic farm must be fully converted to be labelled organic.
  • Organic
  • A method of farming and food production with minimal use of artificial pesticides and fertilisers and a focus on animal welfare and crop rotation.
  • Own-Label
  • Food and other products produced by contract manufacturers and sold under the supermarket's own-label. Own-label products are typically cheaper than branded products.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Organic Food Retailing market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Organic Food Retailing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Organic Food Retailing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Organic Food Retailing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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