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Organic Foods: a Niche Market

A few weeks ago, we mentioned here the decline in the bulk market. Now is the time for the organic market to tail off. Would 2021 have burned everything it loved in 2020? Will tomorrow’s world end up, as some predicted, like the world of yesterday, only worse? After 20 years of strong growth, organic sales in France have dropped by 3% in 2021, especially for fresh products such as milk, cream, cheese, fruits and vegetables.

The first explanation resonates with the current political and social situation: the buying power. True, organic products are more expensive than others. As luxury products – will not fail to retort readers with a sharp mind. Incidentally, they’ll underline their good (excellent) health… However, during the first lockdown, organic products seemed to reassure those who, due to the virus, started to choose their food from new quality criteria. Taste, yes, but not only. Quality and safety too. So what is it? Would their price have come to the end of this requirement?

We must start by remembering that all growth curves will eventually reach a phase of stagnation, also called “plateau” if we want to remain in a bucolic style. Or even of regression. Meat consumption over the centuries can testify… Especially since organic consumption and production will never reach 100% of the market because it is both a niche (a niche inhabited by a large number of people, of course) and an occasional market. For some, eggs and milk are important. For others, vegetables and organic cosmetics matter more. Everyone can use their own personal example to convince themselves.

Consuming everything organic implies rather rare involvment, investment of time and purchasing power… The organic market does not have a monopoly on virtues. Is the organic label better than “fair trade”, than local, than the red label? Is it always synonymous with quality? Local organic or imported organic? Organic products in plastic packaging or not organic in bulk? Organic rather than a good Yuka or Nutriscore rating? The price of organic products is really far from being the only factor explaining the slowdown of this market…

So What ?

Rather than focusing on the growth curve of organic food, it would be better to ask how this market can contribute to making our perception of what we buy more demanding. In that respect, the role of organic food will continue to grow...

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