Section A -- 35 Marks. Organic Food -- Environment concerns impacting the way we shop 2
Reaction of distributors to the changing trends in consumer behaviour. 4
Supermarket Wars -- How do they stack up ? 5
Specialised Organic Food Stores 6
Section B -- 45 Marks 6 pages 7
Importance of Certification Symbols 7
Section A -- 35 Marks. Organic Food -- Environment concerns impacting the way we shop
The industry I have chosen for this report is the organic food industry and in particular the distribution channels for the food industry in Ireland and how they have reacted towards the changing in trends in consumer buying behaviour. Recent European scares regarding meat, BSE, and the bad publicity surrounding GM foods have been drivers of the organic food revenue.
There is a growing demand for organically produced food in Ireland. The level of growth has accelerated exceedingly in the last few years. The rise in the area that is being farmed organically, which has more than doubled recently has resulted in increased volumes of Irish organic food becoming available, although like most European markets imports are prominent especially in the fruit and vegetable, spices and pasta markets.
28 per cent of Irish consumers buy organic food at least once a month.
On average buying households spend around £20 per month on organic food.
Irish consumers spontaneously associate organic food with being produced without chemicals and pesticides (57%) and being health and natural (37%).
60 per cent of purchases take place in supermarkets.
83 per cent do not recognise any of the main organic symbols in Ireland.
68 per cent of those who do not buy organic food say it is to expensive.
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...is has resulted in a strong increase in sales over the last three years in particular. While this growth is likely to continue over the coming years there are a number of negative factors that could have potentially very serious consequences for the development of the organic food market. These include;
.There continues to be an insufficient consistent supply of products available to ensure a year round supply for consumers to choose from. If the proportion of consumers purchasing organic food is to increase it is important that they can source these products when they need them otherwise they will look for an alternative-
.The product range available continues to be quite limited and is mainly confined to primary foods such as fruit & veg. milk and meat.
If the market is to grow it is important that consumers have a wider choice of products available to them.
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