LONDON--(BUSINESS WIRE)--According to the latest market study released by Technavio, the organic food and beverages market in Europe is set to reach USD 39.04 billion by 2020, growing at a CAGR of close to 7%.
This research report titled ‘Organic Food and Beverages Market in Europe 2016-2020’, provides an in-depth analysis of the market in terms of revenue and emerging market trends. This market research report also includes up to date analysis and forecasts for various market segments and all geographical regions.
Request sample report: http://goo.gl/5zmH87
The report categorizes the organic food and beverages market in Europe into four major distribution channel segments. They are:
- Supermarkets and hypermarkets
- Grocery stores
- Online retailing
Supermarkets and hypermarkets accounted for a share of 41%-43% of the organic food and beverage market in Europe in 2015, in terms of revenue. “Supermarkets and hypermarkets in Europe are increasingly stocking various organic food brands, expanding shelf space for organic food, and launching their own organic food labels. All of these factors have contributed to sales growth. Some of the leading retailers in Europe are Carrefour, Auchan, and Tesco,” says Vijay Sarathi, a lead analyst at Technavio for the non-alcoholic beverages sector.
The grocery stores segment accounted for a 25%-27% share of the market in 2015, in terms of revenue. The segment includes independent store owners, convenience stores, specialty stores, and forecourt retailers. These small grocery stores are losing their share to large retailers and supermarkets because organic food and beverage products have become mainstream. Leading supermarket chains such as Tesco have launched their own private-label organic products. However, sales from specialty organic stores will continue to increase during the forecast period, as they provide a wide assortment of organic-only products.
The online retailing segment accounted for a 6%-8% share of the organic food and beverage market in Europe in 2015 in revenue terms. “Online grocery shopping is still at a nascent stage but is likely to grow in the coming years as consumers increasingly seek convenient shopping. The online share of total grocery sales is expected to increase in all major European economies during the forecast period,” says Vijay.
The online share of grocery sales is expected to increase in the UK from 12% in 2013 to 15% in 2018 and in Germany from 7% in 2013 to 10% in 2018.
The others segment includes discount stores, direct sellers, and other non-store retailers. This segment accounted for a 24%-26% share of the market in 2015. The sales of organic foods and beverages from large discount stores are high in Europe, as consumers seek value in terms of pricing and organic products are generally expensive.
Competitive vendor landscape
The organic food and beverage market in Europe is highly fragmented with the presence of numerous vendors, including international and regional players. Market vendors compete on the basis of product differentiation, product portfolios, and product prices. The competition is expected to intensify during the forecast period because of the increased acceptance of organic food by consumers and the price war among vendors. Numerous emerging private label brands have further intensified the competition.
With demand outstripping supply, companies have invested substantially into increasing their production capacities and introducing product variations. In 2015, Arla Foods and DMK Group opened a joint venture production facility in Nordhackstedt for high-quality whey protein concentrate and lactose. Arla Foods also opened a new production facility in Pronsfeld, an investment worth USD 118.8 million.
The top vendors in the organic food and beverage market in Europe listed by Technavio’s research analysts are:
- REWE Group
Browse Related Reports:
- Global Health and Wellness Food Market 2015-2019
- Global Food Intolerance Products Market 2015-2019
- Global Organic Dairy Products Market 2015-2019
Purchase these three reports for the price of one by becoming a Technavio subscriber. Subscribing to Technavio’s reports allows you to download any three reports per month for the price of one. Contact email@example.com with your requirements and a link to our subscription platform.
Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.
If you are interested in more information, please contact our media team at firstname.lastname@example.org.