The UK Foodservice industry is set to increase due to the demand for organic food products.

Thursday 22 August 2013, Amsterdam

41% of Foodservice operators expect the demand for organic food products to increase in 2013-2014. Evidencing the trend for organic products, a C-level executive from a profit sector company stated: “The trend for organic food is increasing as people strive to consume what they believe to be ethical foods.” In addition, analysis of supplier responses reveals 37% of respondents expect no change in demand of organic food products, while 32% indicate a ‘decease’ in demand in 2013–2014 compared to 2012.

The concern for healthy eating has contributed to the growth of organic foods
The survey results reveal that 63% of foodservice operators identified ‘concern for healthy food’ as the main factor driving the growth of organic foods. Amidst changing lifestyles and growing awareness about the advantages of healthy eating habits, consumers are looking for food items that can help them manage health related issues such as obesity, low immunity, and deficiency of essential vitamins and minerals in the body.

In total, 49%, 44%, and 43% of foodservice operators expect the demand for ‘organic meat products’, ‘organic vegetables and fruits’, and ‘organic dairy products’ to increase in 2013–2014. Moreover, 29% of foodservice operators project a share of ‘less than 10%’ for organic products in the overall procurement expenditure for 2013–2014, while 26% of respondents expect to allocate between ‘10–20%’.

Change in consumer demand for organic food – UK foodservice channels
Survey results reveal that 50% of respondents each from the ‘accommodation’ and ‘catering’ channels indicate an ‘increase’ in consumer demand for organic food products in 2013–2014 compared to 2012. In addition, 64% and 45% of respondents from ‘education’ and ‘restaurants’ channels, respectively, anticipate a positive outlook for organic food products. However, 54%, 36%, and 33% of respondents from ‘pubs, leisure and travel’, ‘education’, and ‘catering’ respectively expressed no change in consumer demand for organic foods in 2013–2014 compared to 2012.

Change in consumer demand for organic food – UK foodservice industry suppliers
Analysis of supplier responses reveals a disparity in opinions between buyers and suppliers. Overall, 37% of supplier respondents expect no change in consumer demand for organic food products. In addition, 32% of respondents indicate a ‘decrease’ in consumer demand for 2013–2014 compared to 2012, whereas, 26% of respondents anticipate consumer demand to ‘increase’. As highlighted in section 3.1.1, a neutral response is attributed to the unfavourable economic environment and resulting cost constraints.

Consumer budgets are affected by the on-going economic recovery and, consequently, price will play a key role in product selection, which will result in unchanged consumer demand for organic products. For example, a senior level executive from a supplier company stated:
“While provenance and traceability will remain important issues for consumers due to the current economic environment, price will still be the major driver of consumption. As a result, consumer demand for organic food products will not undergo any major change.”