Organic Market in Turkey


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Organic Market in Turkey

  1. 1. Prof. Dr. Uygun AKSOY Ege University Faculty of Agriculture Department of Horticulture Bornova-İzmir/TURKEY Latest Developments and Trends in Turkish Organic and Cosmetic Sectors Organic Cluster September 2011
  2. 2. Outline <ul><li>Overview of Organic Agriculture in Turkey </li></ul><ul><ul><li>Competent Authority/Legislation </li></ul></ul><ul><ul><li>Support Policies for Organic Agriculture </li></ul></ul><ul><ul><li>Leading Provinces </li></ul></ul><ul><ul><li>Plant/Animal Production </li></ul></ul><ul><li>Market: Organic Products </li></ul><ul><ul><li>Domestic Market for organic products </li></ul></ul><ul><ul><li>Export Market for organic products </li></ul></ul><ul><ul><li>Importation of Organic Products </li></ul></ul><ul><li>Market: Cosmetic Industry </li></ul><ul><ul><li>Turkish Cosmetics Market </li></ul></ul><ul><ul><li>Organic Cosmetics </li></ul></ul><ul><li>Conclusion </li></ul>Organic Cluster September 2011
  3. 3. <ul><li>Ministry of Food Agriculture and Livestock is the competent authority (03.06.2011 dated 639 numbered) </li></ul><ul><ul><li>DG for Plant Production Dept. Of Organic and Good Agriculture </li></ul></ul><ul><li>Legislation related to organic agriculture is revised according to EC 834/2007 enforced in November 18, 2010 (bylaw published in 18 August 2010 and 27676 dated Official Gazette). </li></ul>Organic Cluster September 2011
  4. 4. Subsidies for organic agriculture: 2011 Organic Cluster September 2011 Production Products Amount € Organic Plants Production All food and non-food 100 €/ha Organic Animal Production Species/Type Cattle 112.5€/ head Sheep-Goat 3.0€/head Aquaculture Trout 0.13€//kg Aquaculture Sea bass & bream 0.17€/kg Apiculture Bee keeping 1.4 €/bee hive
  5. 5. <ul><li>Loans with reduced interest rate (60 % reduction in interest rates) from Agricultural Bank and Agricultural Credit Cooperatives for the organic sector: farmers, in-put producers and processors </li></ul><ul><li>Cost of Laboratory Analysis supported if the MRL comply with those of the importing country </li></ul>Organic Cluster September 2011
  6. 6. Leading Provinces <ul><ul><li>İzmir: Dried fruit, tomato products, herbs, textiles for the export market + Fresh fruit and vegetables for the domestic market + culinary herbs </li></ul></ul><ul><ul><li>Aydın: Dried fig + wild harvest </li></ul></ul><ul><ul><li>Manisa: Raisins + Fresh fruit and vegetables for the domestic market </li></ul></ul><ul><ul><li>Şanlıurfa: Cotton + wheat </li></ul></ul><ul><ul><li>Samsun: Hazelnut + vegetables </li></ul></ul><ul><ul><li>Çanakkale: Animal products </li></ul></ul><ul><ul><li>Afyon+ Isparta: Rose oil </li></ul></ul><ul><ul><li>Hatay: Laurel leaves and soap </li></ul></ul>Organic Cluster September 2011
  7. 7. Organic Food and Non-Food Plant Production (2009-2010) 2009-2011 Organic Cluster September 2011 Organic production In Conversion 2009 (2010) Fully Organic 2009 (2010) Number of Farms 24 354 (30 918) 11 211 (11 179) Certified Area (ha) 231 003 (295 141) 69 921 (63 039) Certified Natural Area for Wild Harvest (ha) 19.95 (0) 175 790 (126 250) Fallow (ha) 20 895.6 (23 107) 4 011.8 (2495) Total Area (ha) 251 918.8 (318 248) 249 722 (191 785)
  8. 8. Organic Animal Production (2010) Organic Cluster September 2011 Number of Farms Total number Production Trend (2011) Bee Keeping (Organic) 191 14 699 hives 208.15 tons honey Bee Keeping (Conversion) 225 13 258 hives Poultry (Organic) 14 342 129 birds 17889 808 eggs Poultry (Conversion) 1 200 Livestock (Organic) 90 45 855 heads 11 604 tons milk Livestock (Conversion) 69 13 031
  9. 9. MARKET: Organic Products Organic Cluster September 2011
  10. 10. Domestic Market <ul><li>Number of Open Markets </li></ul><ul><li>increasing in big cities, </li></ul><ul><li>Product range increasing also at retailer shops, </li></ul><ul><li>Retailers (e.g. Tesco-Kipa,Migros) started to produce under their own brand, </li></ul><ul><li>Number of retailers selling organic products increasing. </li></ul>Organic Cluster September 2011
  11. 11. ORGANİC SECTOR UNANIMOUSLY DECİDED TO SUPPORT ‘ECOLOGY FAIR’ STARTING FROM MAY 2010 <ul><li>‘ EKOLOJİ’ FAIR/İzmir </li></ul><ul><li>May 2012 </li></ul>Organic Cluster September 2011
  12. 12. Exportation <ul><li>Traditional products as dried fruit, hazelnut and cotton still have the major share, </li></ul><ul><li>Rose oil and water is one of the pioneers, </li></ul><ul><li>Increase in processed food, </li></ul><ul><li>Increases in medicinal and aromatic herbs (annis seed, laurel, rosemary, thyme, oregano, fennel) mainly for culinary use. </li></ul>Organic Cluster September 2011
  13. 13. Imports <ul><li>Products that are not produced in Turkey e.g. coffee, chocolate, </li></ul><ul><li>Organic wheat and cotton produced in other countries by Turkish companies, </li></ul><ul><li>Animal feed as soybean, soy meal, </li></ul><ul><li>Special products e.g. Cinnamon cookies from Sweden for IKEA, </li></ul><ul><li>Still very little due to the size of the domestic organic market. </li></ul><ul><li>…………… .. </li></ul>Organic Cluster September 2011
  14. 14. MARKET: COSMET I C INDUSTRY I N TURKEY Organic Cluster September 2011
  15. 15. OVERVIEW – MARKET SIZE Turkish cosmetics market has expanded 64 . 4% during the last 5 years with a constant annual growth rate of 10 . 5 % Organic Cluster September 2011
  16. 16. OVERVIEW – TOP 10 COMPANIES IN MARKET SHARE Organic Cluster September 2011
  17. 17. OVERVIEW – TOP 10 BRANDS AND MARKET SHARE Organic Cluster September 2011
  18. 18. Source: UN Comtrade database Turkish exportation of essentisal oils, resinoids, perfumery, cosmetics (3), scent sprays (2) and brushes etc.(1) as 1000 US $ Organic Cluster September 2011
  19. 19. Turkish exportation of essentisal oils, resinoids, perfumery, cosmetics (2), scent sprays (1) as % of value gained Organic Cluster September 2011
  20. 20. COMPANIES INVOLVED IN ORGANIC COSMETICS Organic Cluster September 2011 209 Ecovital Organik Gıda ve Kozmetik Eyüp Çankal Piyalepaşa Mah. Çimen Sok. No: 11/A Beyoğlu - İSTANBUL 0 212 237 54 86 [email_address] Eyüp ÇANKAL |IMPORT, EXPORT, PROCESS, PACKAGE, MARKETING 224 EKOLOJİ MARKET GIDA TARIMSAL ÜRÜNLER KOZMETİK TEMİZLİK MAD.PAZ.SAN. ve TİC.LTD.ŞTİ. İSTOÇ 44.Ada No:25-27 Mahmutbey Bağcılar İstanbul 02126596937 02126596938 Serap Uysal PROCESSING, PACKAGING, MARKETING 225 EKOLOJİK İMECE GIDA TARIM vE KOZMETİK SAN. TİC. LTD. ŞTİ. Katip Mustafa Çelebi Mh. Tel Sok. No:2/2 Beyoğlu İstanbul 02122936374 02122936350 [email_address] ALİ SOHTORİK PACKAGING, MARKETING 244 ELCA KOZMETİK LTD. ŞTİ. SUN PLAZA MASLAK MAH. BİLİM SK. NO:5 MASLAK – İSTANBUL 0212 3655800 MUTLU DEMİRYOL IMPORT 505 NETSA ORGANİK TARIM MD.GIDA KOZMETİK SAĞLIK PAZARLAMA VE TİC. A.Ş. KONAK MAH.BİLGİNLER CAD. MEHTAP SİT. A BLOK NO:35 D:38-40 NİLÜFER/BURSA 0224 453 18 10 0224 453 18 10 [email_address] TANJU VURAL EXPORT, PRODUCTION, PROCESSING, PACKAGING, MARKETING 513 nora kozmetik gıda inşaat ithalat ihracat üretim ve sanayi ticaret ltd. şti. Adnan Saygun Cad. Metehan Sok. No:16/2 Ulus Beşiktaş İSTANBUL TÜRKİYE 02122812241 02122812201 [email_address] gülçin erdeniz kenar |IMPORT, EXPORT, MARKETING
  21. 21. Increased urbanization and the young population of the country will benefit the overall beauty and personal care environment. Moreover, with an increase in the working population, people are expected to have better prospects for work. Consequently, they will have higher disposable incomes and be more interested in products that offer greater hygiene, more professional appearance and a modern lifestyle. A Large Young Population and Rapid Urbanization a re Significant Growth Factors Organic Cluster September 2011
  22. 22. Still Threatened by the Rising Demand for Home-use Products T he growth of professional beauty treatments will increase with better economic conditions. In particular, urban Turkish women are very keen on visiting beauty and hair salons, and are expected to demand salon beauty services once they feel more economically secure. Fear for chemicals especially among young and educated consumers direct them for more healthier products. Organic Cluster September 2011
  23. 23. Avon Preserves Its Leading Position Avon is expected to remain the leader of beauty and personal care and further increase its share over the forecast period. Through focusing on the development of masstige brands, especially in fragrances and facial moisturisers, the company aims to appeal to a wider consumer base and improve its consumer profile. Its fragrances brands Christian Lacroix and Perceive and its Anew skin care brand are higher-quality offerings, but less expensive than premium products. Organic Cluster September 2011
  24. 24. Advertising and Promotions Key To Rising Consumer Demand P romotions and advertisements are expected to represent a stronger tool for competition. Frequency of advertisements and promotions is specifically expected to be high for products such as 2-in-1 products in hair care, mascara and foundation in colour cosmetics, skin nourishers/ anti-agers in skin care, deodorants and premium and masstige fragrances, as these are the categories with the highest growth potential. Apart from quality and price, the success of new product launches is also predicted to be linked to well-designed advertisements. Organic Cluster September 2011
  27. 27. THANKS FOR YOUR ATTENTION! Organic Cluster September 2011