Europe: Organic Food Market should generate 39 Billion USD by 2020
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Organic food and beverages market in Europe set to reach USD 39.04 billion by 2020, posting a CAGR of close to 7%, according to the latest market study released by Technavio explained Business Wire.
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. 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 and Others. The top vendors in the organic food and beverage market in Europe listed by Technavio’s research analysts are: Tesco, Metro, Carrefour, Ahold and Rewe Group. Leading supermarket chains such as Tesco have launched their own private-label organic products.
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. The grocery stores segment accounted for a 25%-27% share of the market in 2015, in terms of revenue. However, sales from specialty organic stores will continue to increase during the forecast period. The online retailing segment accounted for a 6%-8% share of the organic food and beverage market in Europe in 2015 in revenue terms. 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. With demand outstripping supply, companies have invested substantially into increasing their production capacities and introducing product variations.