The organic stores market - Italy (2023)

1.2 The global market

Globally, the market for organic food&beverage products is estimated at $***.** billion in ****. Growing consumer interest in sustainable and fair-trade agriculture and animal husbandry leads to predictions of a compound annual growth rate (***) of **.* percent over the ****-**** period. By the end of the period, the global market could reach a total value of $***.** billion.

Organic food&beverage market World, ****-****, in billions of euros Grandviewresearch

In ****, the United States dominates the global organic market, garnering a ** percent market share. Germany, the second largest market globally, occupies a */* share of the U.S. market (***). Finally, the other countries together gather **% of the market value. Market for organic products, breakdown by country World, ****, % SANA

1.3 The Italian market

Between **** and ****, the Italian market for organic products shows strong growth. During the period under consideration, the market value increased from *.** billion euros to *.** billion euros, marking a growth of **.*% in * years. The growth appears to be constant throughout the entire period, and the outbreak of the pandemic in **** does not seem to have significantly affected the organic sector.

Organic market Italy, ****-****, in billion euros Issuu

Relative to the segment of stores specializing in the trade of organic products, between **** and **** the market value appears to be growing. During the period under consideration, the market value of organic stores increased from *** million euros to *** million euros, showing a growth of *.* percent. However, while between **** and **** the growth appears to be steady at **.*%, in **** the market value appears to be shrinking, marking a decline of *.*%.

Market value of organic stores Italy, ****-****, in millions of euros Issuu

1.5 The consequences of the Russian-Ukrainian conflict

The outbreak of the Russian-Ukrainian conflict in February **** resulted in, among other things, a general increase in price indexes. The sectors related to consumption and production of agri-food products appear to be among the most affected by the consequences of the conflict.

As for the consumer price index for food products, between January **** and November **** this increased by **.* points. This means that over a period of ** months, average prices for consumers rose by **.* percent. The increase between January **** and November **** is almost double the total increase between **** and ****. Compared with ****, consumer prices for food increased by **.* percent in November ****.

Consumer price index for food products Italy, ****-****, base ****=*** Istat

The increase in consumer prices is merely a reflection of the increase in production costs. Considering the index of producer prices of vegetable products sold by farmers, between January **** and September ****, this increased by *.* points, equivalent to increase in production costs by *.* percent. As shown in the graph below, the index shows a fluctuating trend during the period under consideration, with values ranging from ***.* (***). Index of producer prices of crop products sold by farmers Italy, ****-****, base ****=*** Istat Then considering the overall index of producer prices of products sold by farmers (***), it ...

2.1 Demand in Italy

Between **** and ****, the sales value of organic products (***). Value of demand for organic products Italy, ****-****, in billions of euros Ismeamercati Looking specifically at the trends in consumption at home and away from home, it is possible to show an increase for both between **** and ****. Specifically, spending on at-home consumption of organic products increased from *.** billion euros to *.** billion euros (***) while spending away from home grew ***.* percent, from *** million euros to *.** billion euros. Organic product sales, breakdown by consumption at home and consumption away from home Italy, ****-****, in billion euros Healthy Between **** and ****, the percentage of Italian households that say they have purchased organic products in the past year is also growing. Specifically, while in **** **% of households responded positively, in **** these are **%, showing a growth of **% in * years. Households that purchased organic F&B products at least once in the year Italy, ****, % Federbio Finally, considering the breakdown of Italians' spending on different organic products, fruit represents the main product purchased with **.*% of total spending. This is followed by milk and its derivatives (***). All other products together account for **.* percent of Italians' spending on organic products.

Breakdown of organic spending Italy, ****, % Ismeamercati

2.2 Demand drivers

In order to analyze the drivers of demand for organic products in Italy, the main motivations and criteria for purchasing products are considered.

By analyzing the main motivations expressed by Italians for buying organic food products, it is possible to highlight how demand is driven by factors related to care for the environment and health. In fact, ** percent of buyers say they choose organic products because they are considered safer for health while ** percent of subjects report motivations related to greater respect for the environment. This is followed, with ** percent, by greater respect for animal welfare, a desire to support small farmers, and a belief in higher quality. Those who consider organic products to have different nutritional properties than the non-organic equivalent are * percent of buyers while * percent say they choose organic products for better taste/taste. Main reasons expressed by Italians for buying organic food products Italy, ****, % SANA Considering the criteria by which Italians choose different organic products, **% of buyers say they consider the origin of raw materials as the main purchase criterion. This is followed by promotions and offers with ** percent of the total while just * percent of consumers say they buy based on product brand.

Main criteria that ...

2.3 Geographical distribution of demand

In order to visualize the geographical distribution of demand, a map was created with the value of average monthly household spending on food and non-alcoholic beverages in each Italian macro-region.

The Islands record the highest value in terms of household spending: these ship an average of ***.* euros per month for the purchase of food and non-alcoholic beverages. This is followed by the South, with ***.* euros spent on average by households , and the Center, where average monthly household spending stands at ***.* euros. The Northwest and Northeast record the lowest values in the entire peninsula, at ***.* euros per month and ***.* euros per month per household, respectively.

The table below shows each Italian macro-region's share of spending on the purchase of organic products compared to the national total. In contrast to the overall spending on the purchase of food and non-alcoholic beverages, the Northwest and Northeast collect the highest share of spending in the entire peninsula, accounting for **.* percent and **.* percent of the national total, respectively. This is followed by the Center and Sardinia with **.* percent of the total while the South and Sicily together contribute **.* percent of total spending.

2.4 New demand trends

Among the major demand trends, Biobank cites at the top of the list is the growing consumer interest in consuming plant-based, i.e., all-vegetable protein and hyper-protein products. Foods that are sources of plant-based protein include legumes, cereals, nuts, seeds, and algae. These are generally consumed to supplement the diets of athletes and those who exercise, but also by those who wish to replace proteins of animal origin. The growing trend of plant-based proteins, or proteins derived from plant sources, reflects a significant evolution in eating habits and consumer awareness globally.(***)

By ****, the global plant-based protein market is estimated at $**.** billion. Growing consumer interest in this product category leads to an estimated compound annual growth rate (***) of **.* percent for the period ****-**** due to which the market could reach a total value of $**.* billion by the end of the period.

Plant-based protein market World, ****-****, in billions of dollars Marketdataforecast

3.1 The market structure

Between **** and ****, the total number of organic stores in Italy is declining. During the period analyzed, the total number of establishments fell from **** to ****, marking a contraction of **.* percent. The decline appears to be constant during the entire period, and the negative annual variations show substantially homogeneous values.

Organic stores Italy, ****-****, in number Issuu

Then analyzing the different types of activities, between **** and ****, the number of establishments attributable to the activity of chains is decreasing, while independent stores are substantially stable in terms of numbers. Specifically, over the period, chain stores decreased from *** to *** marking a **.* percent decline while independent stores decreased by just ** (***) while between **** and **** these grew by **.*%.

Organic stores, breakdown by type of business Italy, ****-****, in number Issuu

analyzing the geographical distribution of organic stores, it is possible to highlight a clear concentration in the Northeast area, where there is almost * in * stores (***) of the national total. This is followed, at a short distance, by the Northwest with **.*% of the total number of stores. The Center and South collect **.* percent and **.* percent of organic stores, respectively, while the Islands have just ** establishments, accounting for *.* percent of the national total.

MACROREGION NUMBER OF ORGANIC STORES Northeast *** ...

3.2 The value chain

3.3 The main actors

EcorNaturaSì s.p.a: founded in **** as a small organic store, today it is a leading Italian organic products company. It specializes in the distribution of a wide range of organic food products, including fresh produce, pantry foods, snacks and beverages. The company also offers personal and home care products, all selected with a strong commitment to sustainability and quality. NaturaSì promotes a healthy and environmentally friendly lifestyle, with a philosophy focused on consumer well-being and protecting the planet.

Natplus s.r.l: founded in ****, is an Italian company operating in the organic and natural products sector. The company offers an organized structure with technical and commercial support, marketing materials and training, as well as a catalog of more than *** exclusive NaturPlus-branded, certified organic and natural products produced in Italy. The figure of the "NaturPlus Wellness Consultant" is central to their direct sales strategy, offering a kind of home-based organic herbalist shop with the support of a consultant. This model allows consultants to work autonomously and flexibly, with no location or time constraints, and no minimum order or initial investment.

MelaVerde Bio: founded in ****, and now part of Natplus s.r.l, is a chain of stores specializing in the sale ...

3.4 The large-scale retail trade (GDO)

As for Italians' preferred sales channels for buying organic products, modern distribution (***) with **.*% of the total.

Spending on consumption of organic products at home, breakdown by sales channel Italy, ****, % Federbio

The main players active in the large-scale retail trade (***) that include own-brand organic products in their offerings are shown below:

Conad: The company offers a wide range of organic products through its "Verso Natura" brand, which covers not only food but also home and personal care products. The "Verso Natura" line focuses on sustainability and animal welfare, ensuring that animals are raised according to natural rhythms and fed GMO-free organic feed.

Carrefour s.p.a: Carrefour, one of the leading retail groups in Europe and around the world, has a strong commitment to organic products. Their Carrefour BIO line was developed with the aim of offering simple, wholesome products obtained through non-intensive, nature-friendly production methods. Carrefour's range of organic products includes a variety of items such as fresh fruits and vegetables, sweets, breakfast products, and a selection of personal care products. It also extends to products such as eggs, chickpeas, lentils, corn cakes, and peeled tomatoes, among others.

CoopItalia: Coop offers a wide range of organic products under its "Vivi Verde" ...

4.1 Type of the offer

Organic stores, also known as bio-shops or natural product stores, are retail spaces focused on selling organic and natural products. They are distinguished by a welcoming environment and often feature natural designs, with a focus on the use of sustainable materials such as wood and bamboo. Many of these stores place a strong emphasis on sustainability and ethics, promoting local products, reduced or reusable packaging, and options for special diets such as vegan or gluten-free. Often, organic stores also offer bulk products, allowing customers to buy the exact amount they need, thus reducing waste.(***)

Organic stores include a wide range of agri-food products in their offerings, including:

Organic fruits and vegetables Characteristics: cultured without synthetic pesticides, herbicides or chemical fertilizers. These products tend to have a more natural flavor and often higher nutrient density. Variety: wide range including everything from apples and bananas to more exotic produce such as avocados and goji berries. Benefits: reduced exposure to chemical residues and potentially higher antioxidant content.

Organic Meats Characteristics: from animals raised without the use of antibiotics or growth hormones. These animals have access to the outdoors and are fed organic food. Varieties: beef, chicken, lamb, pork and more. Benefits: less drug residues ...

4.2 The prices

In order to analyze prices for organic products, four different product categories (***) are considered. Specifically, the farm gate prices between **** and **** for each category are analyzed. As will be highlighted below, the increase in prices is particularly concentrated between **** and **** while negative changes are recorded for several product types between **** and ****.

As for organic grains and their derivatives, a general increase in prices can be shown between **** and ****. In particular, organic rice shows a **.* percent increase in prices per ton, organic wheat by *.* percent (***).

Farm gate prices for organic grains and derivatives Italy, ****-****, in euros/tonne Sinab

Analyzing the fresh fruit and nuts segment, it is possible to show a swinging trend between the different product types. Between **** and ****, the average price per kilo of organic oranges has increased by ** percent while that of organic lemons is down **.* percent as well as that of organic table grapes, which shows a decline of **.* percent. The average price of organic nuts increased by **.* percent between **** and ****. Farm gate prices for fresh fruit, citrus and organic nuts Italy, ****-****, in euros/kg Sinab For the segment of fresh organic vegetable fruits, a general increase in prices can be shown. Between **** and ****, the average ...

4.3 New supply trends: sustainable packaging

Green packaging, or environmentally friendly packaging, has become a crucial component in companies' sustainability strategies and a growing concern for environmentally conscious consumers. This trend reflects efforts to reduce the environmental impact of packaging by reducing waste, using recyclable or biodegradable materials, and optimizing manufacturing processes. Biobank notes an increasing use of sustainable packaging within the organic store circuit. A growing interest in packaging and packaging that respects the *R rule: reduce, reuse and recycle is noted.(***)

Globally, the sustainable packaging market has reached a value of $***.** billion in ****. Over the period ****-****, a compound annual growth rate (***) of *.* percent is estimated under which the global market could reach a total value of $***.** billion by the end of the period.

Sustainable packaging market World, ****-****, in billions of dollars Mordorintelligence

5.1 The legislation

The market for organic products, as with many other agricultural products, is regulated by various laws and regulations at both the national and European levels. These laws are concerned with ensuring the quality, food safety and origin of the product. Some of the main laws and regulations for the organic produce market in Italy are:

Regulation (***) ****/***: sets the principles of organic production, establishes the rules for organic production, its certification and the use of claims referring to organic production in labeling and advertising. Regulation (***) No ***/****: on the hygiene of foodstuffs. Regulation (***) No. ***/**** of the European Parliament and of the Council on the hygiene of foodstuffs with regard to food allergen management, food redistribution and food safety culture. Law of March *, ****, No. **: pertaining to the provisions for the protection, development and competitiveness' of organic agricultural, agribusiness and aquaculture production.

6.1 Segmentation

• EcorNaturaSì s.p.a
• Bio Sapori s.r.l
• Natplus s.r.l
• MelaVerde Bio (Natplus s.r.l)
• Conad
• Coop Italia
• Carrefour Italia
• Lidl
• Esselunga s.p.a