Organic Market in Greece


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Organic Market in Greece

  1. 1. ORGANIC PRODUCTS CLUSTER (OPC) Organic Agriculture and Developing Trends in Greece Dimitrios Simeonidis President
  2. 2. Structure of the OPC <ul><li>non profit organization, </li></ul><ul><li>set up by the Federation of Industries of Northern Greece (F.I.N.G.) on March of 2006, </li></ul><ul><li>nationwide organization, </li></ul><ul><li>The aim of the Cluster is to bring together all the actors involved in the organic products business and to facilitate the development of the organic products market. </li></ul>
  3. 3. Members of the OPC <ul><li>Members from all over Greece </li></ul><ul><li>manufacturing companies </li></ul><ul><li>producers of organic products </li></ul><ul><li>certification companies </li></ul><ul><li>organizations </li></ul><ul><li>associations </li></ul>
  4. 4. Activities of the OPC The main activities are designed and based on the needs of the sector and the needs of the members. The actions are focused on: strengthening and promoting the organic sector informing the public about the benefits of organic products
  5. 5. <ul><li>Design and coordinate events for the members, in order to promote their products and their services. </li></ul><ul><li>Organize specialized seminars and workshops. </li></ul><ul><li>Organize match making events between Greek and foreign companies. </li></ul>Activities of the OPC
  6. 6. Activities of the OPC <ul><li>Organize common participation of members at national trade fairs ensuring better economic terms of participation. </li></ul><ul><li>Organize events in order to inform the public. </li></ul><ul><li>Participate in European and National Projects. </li></ul><ul><li>Inform the members about the latest trends and developments in the market area of organic agriculture. </li></ul>
  7. 7. Benefits of the OPC members <ul><li>Promotion of their products and services </li></ul><ul><li>Specialized and updated information and services </li></ul><ul><li>Support entrepreneurship in every possible way </li></ul><ul><li>Participation in recommendations and strategic </li></ul><ul><li>interventions at a governmental level </li></ul>
  8. 8. <ul><li>Population: 11,3 million </li></ul><ul><li>Health consciousness market </li></ul><ul><li>19,3 million tourists in 2009 </li></ul><ul><li>GDP growth 2010: -2,1% (nominal), -4,5% (real) </li></ul><ul><li>GDP per capita: 20.360 euros </li></ul><ul><li>Inflation (June 2011): 3,3% </li></ul><ul><li>Debt crisis 2010 (and continues..) </li></ul><ul><li>Political issues (tax policy, labor law, public sector) </li></ul>Greece: Country Analysis
  9. 9. <ul><li>1982: 1st Production of Organic Raisin </li></ul><ul><li>1985: Association of Eco-Agriculture of Greece (AEOG) </li></ul><ul><li>1986: 1st Production of Organic Olive Oil </li></ul><ul><li>1993: Implementation of European Regulation 2092/91 </li></ul><ul><li>1996: Implementation of European Regulation 2078/92Α </li></ul>Brief History of organic sector in Greece
  10. 10. Development of organic agriculture in Greece Source: Hellenic Ministry of Rural Development and Food
  11. 11. Development of organic agriculture in Greece <ul><li>YEAR </li></ul><ul><li>2002 </li></ul><ul><li>2003 </li></ul><ul><li>2004 </li></ul><ul><li>2005 </li></ul><ul><li>2006 </li></ul><ul><li>2007 </li></ul>Average size of organic farms ACRES 31 23 54 58 22 29 Source: Hellenic Ministry of Rural Development and Food
  12. 12. Development of producers Source: Hellenic Ministry of Rural Development and Food
  13. 13. Development of manufacturing companies by sector Source: Hellenic Ministry of Rural Development and Food
  14. 14. Organic Olive Oil Source: Estimates of market, ICAP
  15. 15. Wine made from Organically Grown Grapes Source: Estimates of market, ICAP
  16. 16. Organic Citrus Source: Estimates of market, ICAP
  17. 17. Source:
  18. 18. Market Trends… Significant increase of the outlets Wider Variety of products Entrance of new big companies Rising consumers demand
  19. 19. <ul><li>Super markets </li></ul><ul><li>Groceries  </li></ul><ul><li>Organic Food Stores </li></ul><ul><li>Other companies, such as bakeries, duty free etc. </li></ul><ul><li>Internet </li></ul><ul><li>Open Farmers Markets   </li></ul>Distribution Channels in Greece
  20. 20. Commercial/ Distribution Channels Source: Estimates of market, ICAP
  21. 21. Open markets of organic products in Greece The operation of the open markets started 15 years ago Attica : Thessaloniki : Chalkidiki : Pella : Volos : Trikala : Larisa : Crete : 24 5 1 1 1 1 1 3
  22. 22. <ul><li>In the field of organic fruit and vegetables, the problem is not the lack of demand, but the lack of offer </li></ul><ul><li>The demand of fresh organic products is covered mainly through imports </li></ul><ul><li>The variety of organic products in shelves is raising </li></ul><ul><li>The non-food organic products are entering the market </li></ul>The progress of organic products
  23. 23. Sales of Organic Products in Europe for 2008 In million €
  24. 24. Arable lands in EU including crops that are in transition stage
  25. 25.
  26. 26. Main weaknesses of the sector in Greece <ul><li>Lack of appropriate education and information/ awareness </li></ul><ul><li>Incapability of producers’ organisation/ management </li></ul><ul><li>Incompatible offer and demand </li></ul>
  27. 27. ORGANIC PRODUCTS CLUSTER (OPC) Dimitrios Simeonidis President Organic Cosmetics in Greece
  28. 28. <ul><li>Since 1996 different organizations have been trying to work on harmonization programmes for organic products </li></ul><ul><li>Some agencies that certify products in other countries: - In Italy AIAB-ICEA and CCPB, - In Great Britain SOIL ASSOCIATION, - In France ECOCERT - In Germany are BDIH, ECOCONTROL & OKOTEST. </li></ul>Certification
  29. 29. <ul><li>Total cosmetics market size: € 950 million 1 </li></ul><ul><li>Natural & bio cosmetics market size: € 60 million 2 </li></ul><ul><li>Growth rate estimation of NPC market for 2012-15: 9% </li></ul><ul><li>Major players: KORRES, Apivita (Greek companies) </li></ul><ul><li>Other players: lavera, Macrovita, Bioplasis, Weleda, Jason, Melvita, Logona, etc. </li></ul><ul><li>Market share per category (last 8 years): Skin Care 44-48%, Hair Care 29-33%, Make-up 11-12%, Aromas 11% 3 </li></ul><ul><li>( 1 University of Macedonia - Research, 2 </li></ul>Market overview
  30. 30. <ul><li>Market share per category (last 8 years): </li></ul><ul><li>Skin Care 44-48% </li></ul><ul><li>Hair Care 29-33% </li></ul><ul><li>Make-up 11-12% </li></ul><ul><li>Aromas 11% </li></ul>Market overview Source: ICAP Research
  31. 31. <ul><li>Segmentation by category in Greece 2010 </li></ul>Market overview Source: Estimation “Beauty life” Greece
  32. 32. Market overview <ul><li>Sales channels: </li></ul><ul><ul><li>Pharmacies: >9.500. Almost 1.000 sell natural-organic cosmetics </li></ul></ul><ul><ul><li>Natural-organic shops: around 450 </li></ul></ul><ul><ul><li>Beauty centers: around 200 </li></ul></ul><ul><ul><li>Department stores: 152 (Hondos Center 79, Gallery de Beaute 27, Sephora 25, Aroma Stores 12, Notos Galleries 8, Attica 1) </li></ul></ul><ul><ul><li>S/Ms with organic department: 1.061 (AB Vasilopoulos-Delhaize Group 232, Carrefour 280, Sklavenitis 79, Veropoulos 240, Masoutis 230) </li></ul></ul><ul><ul><li>Tourist shops selling cosmetics: <1.500 </li></ul></ul><ul><ul><li>SPA / Hotels: around 160 </li></ul></ul>Source: “Beauty life” Greece
  33. 33. ORGANIC PRODUCTS CLUSTER (OPC) Dimitrios Simeonidis President