Organic growth driven by fruit and veg

Fruit and vegetables are dominating the European scene when it comes to organics, while exotic and tropical organic fruit are tipped to be the stars of the future, according to a new report.

The popularity of organic fruit and veg is reported to be the key driver behind a growth rate of 26 per cent for the European organic food industry between 2001 and 2004.

The Research and Markets report reveal shows that organic bananas are showing the most demand, with around 80,000 tonnes being sold a year in Europe, with half of that being bought by UK consumers.

Sales of organic fruit in the UK now tops more than €330 million a year, making it the largest market in Europe.

According to figures from Datamonitor the total EU market for organic food was worth €20.7 billion in 2004, with fruit and vegetables representing €5.8bn.

The organic fruit market is being tipped as the strongest area of growth, although organic veg continues to account for the highest proportion of sales.

It said growing interest in organic tropical and exotic fruits such as bananas is expected to be the main driving force behind the overall growth of the fruit segment.

Both UK and Germany are revealed as the two countries dominating the European organic food market, between them representing more than half of all the organic fruit and veg sales in Europe.

There is a distinct north-south divide within Europe when it comes to development. In line with the strength of the market in both the UK and Germany, the report finds that the highest percentage of organic fruit and vegetables are actually purchased in Scandinavia and the Alpine countries.

Sales of organic vegetables in Switzerland, Denmark and Sweden currently account for more than six per cent of total sales, whereas this figure is still less than one per cent in Spain.

A major driving force for the increase in organics has been the major retailers, with a growing number of supermarket and discount chains increasing the shelf space for a variety of fresh organic produce.

Organic production has also risen, the report highlights. In 1985, just 100,000 hectares of EU farmland was certified organic - less than 0.1 per cent of total farm land. By the end of 2002, this figure had risen to 4.4 million ha or 3.3 per cent of total farm land with a market worth around €10 billion.