To answer this question, Kantar Worldpanel repeated its survey on the Responsible Consumer and offers a fresh analysis of these rapidlygrowing markets and their consumers.
Driven by the recession, consumers are looking for value-for-money products, and organic, green and fair trade products are successfully increasing their appeal.
There is no recession as far as these products are concerned and, unlike most FMCG, they are experiencing double-digit growth amid declining markets.
In parallel with the growing environmental awareness and the high media profile of this subject, these products have increased their retail presence, with the help of hypermarkets and supermarkets.
This year (moving annual total to mid-July 2009), 85% of French households bought an organic, green or fair trade product at least once, in other words, 1 million more items than in 2008, despite their high prices. However, these products have not yet completely established themselves, representing only 2% of household expenditure.
Growth led by new types of consumer
A year ago, sales of organic, green and fair trade products were highly concentrated in a few households (environmentally-aware high-income couples under 35), but now, growth in these products is being boosted by families and younger people. Families, for example, account for 50% of the growth in organic foods. More “BioConvertibles” (people with a definite concern for the environment but who have not reached the stage where they make organic, green and fair trade products part of their lifestyle) are buying these products, whereas the number of households described as “Uncommitted” is declining. In comparison with last year, new consumer profiles are emerging, depending on the product categories and different market sectors.
Things are going well for green, organic and fair trade products, but many product categories still appeal to only a small number of households
Organic foods are still dominated by basic products (milk, eggs, yogurts etc.) Eight large categories attract ¾ of the buyers of organic food and account for half of the sales figures for the last 3 years. The categories with most appeal are products where there is little processing, and baby food. Organic food is attracting new households to fruit and vegetables in particular, but is struggling to build on other categories.
Fair trade products continue to rise in popularity and attract new consumers, but these products still involve a distinct minority of people, and lag well behind retailers’ own-label products. This sector is dominated by fair trade coffee, which represents 73% of expenditure on such goods by households described as “Fair Trade”, whose concern is humanitarian rather than environmental.
Green household products are enjoying great success, helped by green national brands and extensions of other brands which are keeping the market moving.
Organic Hygiene and Beauty is booming, thanks to the many brand launches by hyper/supermarkets and distance sellers. This market is opening up to new female consumers, although only 16% of women have purchased an organic hygiene/beauty product this year.
As regards Textiles, it appears that organic and fair trade textiles are not yet a major preoccupation of the French, since only 15% of households are prepared to pay more for clothing which is organic or manufactured in an ethical and environmentally-friendly manner.
Stéphanie Poupinneau, Marketing Consultant at Kantar Worldpanel summarises:
“With these organic, green and fair trade products, the traditional hyper/supermarkets are gaining ground and enabling these market segments to increase their sphere of influence. Own-brand products are becoming established via the extension of their product range and are becoming an engine for growth in this sector, although they are making slower progress in the green products sector than the national brands. As for the special channels, these are standing still, and tend to be used by those who spend the most on organic food, although special channels for fair trade products appear to be growing. As for the retailers, Carrefour is strengthening its leading position in the organic food market and Système U is the retailer with fastest growth in fair trade products.”
When using any data or quotation, please name Kantar Worldpanel as the source
The data in this study is from Worldpanel (a representative sample comprising 20,000 French households).
The “organic/green/fair trade” sector consists of organic foodstuffs and hygiene/beauty products, or products which are fairly traded, and of green household products.
A questionnaire about households’ involvement with these products was sent to our 20,000 panel members during October 2008. Via their normal daily habits, the questionnaire gives an understanding and a clearer definition of the commitment of French households to sustainable development and also their relationship with the environmental movement. It also gives an insight into their barriers and motivating factors when purchasing organic, green and fair trade products listed by category.
The data was calculated using annual figures for a twelve-month period to 12 July 2009.
All purchases were taken into account, wherever they were made: large and medium-size retailers, small supermarkets, hard discounters and other channels (traditional specialist retailers, markets and fairs, mail order, internet, specialist shops such as Naturalia, Biocoop etc.).
fair-trade
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