The market for organic goods in Europe is displaying initial indications of resurgence

The organic product sector is beginning to show initial recovery signals, according to reports from European Union (EU) nations. Following a downturn in 2022, the market for organic goods is on the mend. Major retail chains are even contemplating expanding their selection of organically produced items by the year's end or by early 2025.
Not all regions experienced a downturn in trade. After consistent growth over several years, which spiked during the Covid-19 era, the performance of organic farming sectors faced significant adjustments due to the Russian military incursion in 2022, an energy crisis, inflation, and a prevailing consumer tendency towards saving. This led to a 2.2 percent contraction in the market that year. However, the previous year saw market analysts identifying the initial indicators of a rebound in the organic goods sector.
In Germany, the sale of organic items ranks highest among EU member states. Research by the German firm "bioVista" revealed that last year saw an increase in consumer visits to organic specialty stores across the country, with a notable uptick in purchases. A 7.2 percent increase in organic product sales was also observed in shopping centers in 2023.
This positive trend is mirrored in several other European nations. In France, for instance, after a two-year downturn, the organic product market is showing signs of revitalization. Biocoop, the leading organic specialty chain with over 740 outlets, reported a 2.4 percent increase in sales. It's worth mentioning that this chain's growth outpaced the total food market's growth by 3.7 percent. According to market analysts, this suggests a consumer return to organic goods.
Last year, traditional French supermarkets reduced their organic product offerings, which is thought to have contributed to the sales dip. Nevertheless, towards the year's final quarter, a 2.9 percent increase in purchases of goods from organic farms was recorded compared to earlier months of that year (overall, supermarket sales went up by just 1.9 percent, with non-organic products experiencing a slight decline of 0.9 percent).
Interestingly, while many EU countries saw a decline in organic product trade in 2022, Holland and Estonia recorded growths of 4.4% and 6%, respectively. This achievement in the Netherlands is attributed to the substitution of conventional products with organic ones without significantly raising prices.
In Belgium's organic market, total spending on organic items also grew faster than spending on food and household products - the organic segment increased from 3.4 to 3.5 percent. However, this growth was only noted in Flanders and solely in the sales of fresh items.
In the United Kingdom, no longer an EU member, the organic product market in 2023 expanded by 2 percent, marking the 12th consecutive year of growth amidst political and economic uncertainties.
The European organic food and beverage market is forecasted to hit 141.29 billion USD this year and is expected to surge to 273.85 billion USD by 2029.
The European Commission (EC) has allocated funds for organic farm promotion. At the year's end, the EC unveiled the 2024 promotion policy work program, earmarking 185.9 million EUR for promoting the EU-made products market. Of this, 81.3 million EUR is designated for campaigns within the EU, and 85.1 million EUR for promotions in third countries. Priority is assigned to markets with high potential, such as China, Japan, South Korea, Singapore, and North America, with the United Kingdom remaining a significant market for EU agricultural and food product exports, accounting for over 20% of the EU's exports. A special allocation of 62 million EUR is directed towards sustainably produced terrestrial food products, including 42 million EUR for organic items. One of the anticipated outcomes is an increase in the EU organic logo's recognition among European consumers and a rise in organic product consumption.