France: future of organic products may lie in hands of large supermarkets (IT)


If the production of organic products continues to grow every year in France, mass distribution will supply even more of these products by 2022, according to an analysis from the Xerfi Precepta Institute. Le Journal de l’Environnement reported that, according to the Xerfi Precepta study, it is highly probable that organic products feature on all shelves in 2022. While the turnover of the sector reached nearly €10 billion in 2018, it is on course to reach €15 billion in the next four years, which is a 50% increase. Such growth would be due to the expansion of the offer in stores and online.

But this change of scale carries a significant risk: that of taking organic farming away from its original values, as the sector would be swallowed up by the major brands of conventional agriculture and supermarkets, the study warns. Today, French supermarkets and hypermarkets account for 52% of the organic market. They overtook specialist retailers for the first time in 2018 and recorded growth of 235% between 2010 and 2019.

According to a “high-growth” scenario, this sustained growth will continue and will increase tensions on the upstream part of the sector, which is struggling to structure itself rapidly. As a result, the rise in imports is likely to increase, while the risk of resorting back to conventional production methods could increase tenfold.

Source: Freshplaza


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