In recent decades there has been an increase in the consumption of organic products worldwide. This upward trend stems from the increasing social awareness about the environmental impact of food production.

Increased sensitivity to the use of pesticides and chemical fertilizers, animal welfare and climate change are, among others, some of the causes that are provoking a change in consumption habits.

Numerous studies ensure that today’s consumer would pay a higher price, up to 10% more, for those products with ecological certification.

1. Organic production

Organic production or ECO refers to the agricultural and food production that combines appropriate environmental measures, a high level of biodiversity, the conservation of natural resources and the application of animal welfare standards. The key points of this type of production are the absence of pesticides and chemicals, the limited use of antibiotics and the prohibition of genetically modified organisms (GMOs), as well as crop rotation.

Organic production continues to grow year after year, led by the United States, where the organic production generates more than 40 trillion euros per year, followed by Germany, France and China.

An example of this growth is the farming of cereals, whose organic production has tripled since 2004, reaching 4.5 million hectares produced under ecological conditions in 2017.

In Europe, organic production has increased by 70% in the recent decades, reaching 12.6 million hectares in 2017. Despite this growth, organic animal production remains small, accounting for only 3% of total organic production. The slower growth in organic animal production compared to other organic productions (10% vs. 70%), can be explained by its heavy reliance on feed production and restrictions on the use of pharmacological substances.

Although organic production has increased significantly, the demand for these products is increasing at an even greater rate, it has quadrupled between 2003 and 2017, and that is why growth is expected to continue progressively over the next few years. Europe is the second largest consumer of organic products, with a market value of 34.3 billion euros (37%) and only surpassed by the United States (47%).

2. ECO-labelling

The concept of organic or organic product has been known for more than 100 years, however, its importance has been increasing since 1980, associated with a greater concern about the environment.

There are currently more than 432 ECO-friendly labelling systems available in 246 countries. In the European Union, ECOLABEL certification is the most used one, with more than 72,000 products.

The number of products seeking ecological certification increases each year and is a good indicator of the market trend.

A good example of eco-labelling is the production of eggs, whose organic production has increased by 13% in recent years. There is specific labelling to identify the way laying hens are in farms (cage or floor) and whether it is done ecologically. The labelling of eggs is regulated in the E.U. by Regulation (EC) No 1234/2007.

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3. Changing consumer mindset

The increase in consumption of organic products stems from a change in the mindset of consumers. More and more are the ones who look at the origin and the production conditions in which food is produced, especially among the younger ones. A study in the United States found that up to 75% of young people under the age of 35 would be willing to change their eating habits in order to reduce their impact on the environment.

Among the causes that have led to this change of mindset are the increasingly noticeable consequences of climate change, a greater concern for animal welfare and the use of chemicals and antibiotics in food consumption, as well as different food crises, such as mad cow disease, bird flu or the recent cases of listeriosis.

This change of mindset in the consumer is significantly affecting the way of production, especially related to the use of antibiotics. The tendency to limit the use of antibiotics in animal production is increasing, which has led to the appearance of natural alternatives to sustain organic production. Some of these natural solutions are already available in the market.

According to numerous studies, it is this change of mindset that has caused consumers to be willing to pay an up to 10% higher cost for those products with ecological certification. A good example of this is Germany, where the price of organic wheat is 150% higher than the price of conventional wheat.

4. Conclusion

The market for organic products or ECO has increased significantly in recent years, and this upward trend is expected to continue in the coming years.

A change in the mindset of consumers is responsible for the rise of ECO products, due to a growing concern for the environment and food safety. This change in mindset is also affecting the productive model, especially when it comes to antibiotic use. The limitation on the use of pharmaceutical products has led to the emergence of natural alternatives capable of largely replacing the need for antibiotics.