BioFach America: Consumers remain loyal to organic

Boston / MA. (nm) Representatives of the international organic sector meet at the event of the year in Boston from 23 to 26 September, when BioFach America and the parallel Natural Products Expo East present new products and trends to international professionals from the organic world. The USA, the biggest market for organic food, natural personal care and natural textiles and ahead of Europe, expanded by 17 percent to the equivalent of some 25 billion EUR last year despite the economic crisis. Research findings show that the trend to healthy food and natural non-food products will persist and that U.S. consumers still remain loyal to organic products. This should encourage international companies to continue their activities in the United States or enter the market. The BioFach America – Organic Products Expo East duo in Boston offers the right platform.

A study published at the beginning of the year by the market research institute Information Resources, IRI, in cooperation with the TNS Group confirms it: American consumers attach more importance to environmentally conscious, socially compatible and healthy aspects when shopping. Although the economic situation has deteriorated recently, customers are apparently not inclined to simply give up this consumer behavior.

According to the study, the crisis has a certain influence on the size of the shopping bills. Consumers buy less and switch partly to cheaper private label products. But this is not detrimental to the basic trend of reaching for products on the organic shelf more often. The commitment to green shopping has become a guiding principle for certain population groups in American society.

Eco-centrics, respectful preservers and proud traditionalists

The study by IRI and TNS distinguishes eco-centrics, who regard organic consumption as a matter of course despite higher prices, from two other groups, the respectful preservers and the proud traditionalists. The market researchers attribute great potential to the two latter groups: last year they bought more organic products – 15,5 percent and 8,4 percent respectively – than in the previous year. Upshot: their demand for organic food is not yet covered. The green basic mindset of consumers fits excellently with the interest of many firms in making a name for themselves in the sustainability debate. The knowledge of healthy food and sustainable consumption and the customers´ demand for suitable products are becoming larger, and many firms are responding by expanding their range. For example, Tengelmann´s US food chain A+P recently launched its own private organic label called Green Way. Whole Foods Market brought extensive ranges of natural personal care products for babies, young people and women onto the market in 2008.

25 billion EUR sales in the US organic market

The organic situation and mood in the trade are positive, and the market also allows growth to be expected in the coming years. The American organic food sector grew by 3,6 billion EUR from 2007 to 2008; the non-food sector sold 1,4 billion EUR more, so the total market amounted to 25 billion EUR. The Organic Trade Association OTA forecasts growth rates of about 18 percent until at least 2010. The most prominent organic pioneer at present is the president´s wife Michelle Obama: She has planted an organic vegetable garden in the grounds of the White House and is actively promoting gardening without poisons and genetic engineering.

Good prospects for market entry of German organic manufacturers

BioFach America 2008 was very successful. A good half of the stands are already booked again this year. The German firms present in 2008 want to develop their presence in the USA, but penetrating such a complex market takes time. Matthias Boller, responsible for export at German tofu manufacturer Tofutown, has already exhibited many times at BioFach America in the German pavilion, whose sponsoring by the Federal Ministry for Food, Agriculture and Consumer Protection (BMELV) ends in 2009. «The ministry´s sponsoring of the stands has been more than worthwhile in our case for America», says Boller. «We have now been present in the market for some years. Our Soyatoo label, for example, is available nationwide in Whole Foods shops».

	BioFach	globally	events in 2009 / 2010:
	BioFach China	Shanghai	27 to 29 May 2009
	BioFach America	Boston	24 to 26 September 2009
	BioFach Japan	Tokyo	7 to 9 October 2009
	BioFach América Latina / Expo Sustentat	São Paulo	28 to 30 October 2009
	BioFach India / India Organic Trade Fair	Mumbai	18 to 20 November 2009
	BioFach and Vivaness	Nuremberg	17 to 20 February 2010

A newcomer at this year´s BioFach America is Mexico, which presents its products in a pavilion. At last year´s successful premiere of BioFach America at its new location in Boston, altogether 339 firms took part from 19 nations. The trade show duo, BioFach America and Natural Products Expo East, attracted more than 26’000 organic professionals to America´s East Coast from 79 countries.