the Canadian Organic Landscape

Transcription

1 the Canadian Organic Landscape Tia Loftsgard, Executive Director, Canada Organic Trade Association February 25, 2018

2 About the Canada Organic Trade Association The Canada Organic Trade Association is the membershipbased trade association for the organic sector in Canada, representing all points along the organic value chain. COTA focuses on four strategic areas: government relations, market access, market research and consumer education.

3 Consumer Preferences

4 Familiarity with Canada Organic Source: COTA Consumer Ipsos Polls, June 2017.

5 Logo Association: Baby Boomers (54%) are more likely to associate the logo with pesticide free Organic buyers (39%) are more likely to associate the logo being with good for the environment Millennials (17%) are more likely to associate the logo with good labour practices Pesticide free Good for the environment Non-GMO Strong Standards More tasty/healthy Animal welfare Good labour practices Available Affordable None of the Above Atlantic Canadians (45%) are more likely to associate the logo with being good for the environment Gen X ers (27%) are more likely to not associate the logo with anything 17. Having seen the logo, what, if anything, do you associate with this logo? Base: All Respondents (unwtd) (n=1002) 5

6 Demographics of buyers Source: COTA Consumer Ipsos Polls, June 2017.

7 Household type Generation Education Source: COTA Consumer Ipsos Polls, June 2016 and 2017.

8 Where are the organic buyers? 69% 74% 62% 63% 65% 64% Source: COTA Consumer Ipsos Polls, June 2017.

9 Organic purchasing points of sale 80% 39% 24% 23% 4% Regular Grocer Wholesale Natural Health Farmerdirect Online Source: COTA Consumer Ipsos Poll, June 2017.

10 Motivations Source: COTA Consumer Ipsos Polls, June 2016.

11 Influences & Barriers $$$ Source: COTA Consumer Ipsos Polls, June 2016 and 2017.

12 Organics & Accessibility $100K+ $60K - <$100K $40K - <$60K Percent of weekly grocery budget spent on organic items 17% 24% 28% 24% 27% 21% 20% 19% 19% 39% 30% 33% Percent of Canadians who purchase organic items weekly by income bracket Income bracket $100K 70% 58% $60-100K 67% 59% $40-60K 61% 60% <$40K 64% 53% <$40K 18% 24% 23% 36% Light buyer 1-9% Medium buyer10-24% Heavy buyer % Does not buy organic Source: COTA Consumer Ipsos Polls, June 2016 and 2017.

13 Purchasing weekly Source: COTA Consumer Ipsos Polls, June 2016 and 2017.

14 Public trust 48% September % June % June 2016 Source: COTA Consumer Ipsos Polls, June 2016, June 2017 and September 2017.

15 Trust in Food Claims Made in Canada 55% 39% 6% Local 54% 40% 7% Canada Organic certified 44% 42% 14% Free range/ Grass fed 40% 48% 12% Non GMO, or non-genetically engineered 35% 46% 19% Natural / All natural 34% 48% 18% USDA Organic certified 30% 50% 20% Trustworthy (7-9) 4-6 Not Trustworthy (1-3) Source: COTA Consumer Ipsos Polls, June 2017.

16 Trust in Food Claims: Trust in the Canada Organic certified claim has increased significantly since 2016 up 5 points to 44%. While Made in Canada and Local remain most likely to be seen as trustworthy, claims about food being free range and non-gmo have seen stronger gains, year over year. Trustworthy (7-9) 4-6 Not Trustworthy (1-3) % Trustworthy 2016 Made in Canada 55% 39% 6% 53% Local 54% 40% 7% 53% Canada Organic certified 44% 42% 14% 39% Free range/ Grass fed 40% 48% 12% 36% Non GMO, or non-genetically engineered 35% 46% 19% 29% Natural / All natural 34% 48% 18% 31% USDA Organic certified 30% 50% 20% 27% 11. On a scale of 1-9, where 1 is not at all trustworthy, and 9 is completely trustworthy, please rate how trustworthy the following food claims are to you: Base: All Respondents (unwtd) (n=650) 16

17 Trust in Food Claims: Women are more likely to trust local (59%) and Canada Organic certified (48%) products. %TRUSTWORTHY AGE Total Made in Canada 55% 59% 56% 50% Local 54% 54% 58% 50% Canada Organic certified 44% 52% 43% 38% Free range/grass fed 40% 44% 43% 34% Non GMO 35% 43% 33% 30% Natural/All natural 34% 39% 37% 27% USDA Organic certified 30% 40% 29% 24% Millennials tend to be more trusting of the majority of food claims. Those spending 25-40% of their weekly grocery budget on organic products tend to be more trusting of local, free range, Non-GMO and Natural food claim, while those spending 50-74% of their budget on organic items are more trusting of Canada Organic certified products. %TRUSTWORTHY Average % of Weekly Grocery Budget Spent on Organic Food Total 0 1-9% 10-24% 25-49% 50-74% % Made in Canada 55% 33% 34% 40% 42% 38% 18% Local 54% 31% 28% 39% 43% 26% 36% Canada Organic certified 44% 13% 24% 42% 42% 49% 23% Free range/grass fed 40% 15% 16% 28% 30% 22% 15% Non-GMO 35% 10% 15% 23% 26% 25% 12% Natural/All natural 34% 15% 15% 24% 33% 21% 23% USDA Organic certified 30% 6% 11% 25% 20% 22% 10% 11. On a scale of 1-9, where 1 is not at all trustworthy, and 9 is completely trustworthy, please rate how trustworthy the following food claims are to you: Base: All Respondents (unwtd) (n=650) 17

18 Retail Sales Data

19 Market Size Organic food & non-food market: $5.4B Estimated sales value Organic food, beverage & alcohol market: $4.2B Estimated sales value 8.4% Estimated CAGR % Estimated organic share of total food and beverage market. 2 Source: COTA Canadian Organic Market Report based on data from the Nielsen Company year ending August 2017,.

20 Mainstream boom $2.2B Estimated organic food & beverage sales through mainstream channels = 53% Organic market sales through mainstream channels 1. COTA Consumer Ipsos Poll, June COTA Canadian Organic Market Report based on data from the Nielsen Company year ending August 2017, forthcoming.

21 Fruits & vegetables still rule 96% Organic shoppers buying organic fruits & vegetables 1 $586M 11.8% Estimated sales through mainstream channels Estimated CAGR 1. COTA Consumer Ipsos Poll, June COTA Canadian Organic Market Report based on data from the Nielsen Company year ending August 2017, forthcoming.

22 Meat & Poultry 80% Of organic shoppers now buy organic meat and poultry 1 31% Estimated CAGR COTA Consumer Ipsos Poll, June COTA 2017 Canadian Organic Market Report based on data from the Nielsen Company year ending August 2017.

23 The little ones 60% Organic share sales of total infant formula sales 1 35% Estimated CAGR for infant formula COTA Canadian Organic Market Report based on data from the Nielsen Company year ending August 2017,

24 Organic Operators & Acreage

25 Canada s organic farmers Over 4,000 producers 1 2.2% of farms nationally 1 Organic farmers tend to be younger, more educated and from non-farming backgrounds. 1,2 1. Sources: Canadian Census of Agriculture, 2016; 2. LaForge (2017) Alternative Agriculture and New Farmer Knowledge. PhD Dissertation

26 Source: COTA annual data collection from Certification bodies Estimated number of certified and transitional producers (2015) 7 1K Estimated certified and transitional acreage (2015) K K K K K 1, K K

27 Fruit and vegetable farms Livestock farms 7.7% vegetable farms are organic 1 Canada s organic farms 2.2% of all farms are organic Field Crops Maple 1/3 organic lands K acres 2 1. Canadian Census of Agriculture COTA annual data collection from Certification bodies

28 Trade

29 $637M Tracked organic imports, 2016 In the Global Arena Imports Exports $607M Projection for tracked organic exports, 2017 Source: Harmonized System Code data collected by Statistics Canada, 2017.

30 Do we have a reason to care about NAFTA? YES! Canadian organic imports US organic imports 8% 8% 5% 51% 49% 10% Mexico Peru What do we Italy 69% Canada US Everyone else mean to each Everyone else Canadian organic exports other? US organic exports 16% 12% 27% 49% 72% 24% India US Everyone else Source: Harmonized System Code data collected by Statistics Canada, Canada Mexico Everyone else

31 New Canadian Organic Market Report or visit our Shopify store

32 What can COTA do for you? Lobby for the change we want to see in organic Federal budget asks and programming Regulatory affairs Data and market analysis reports Support domestic and cross-border business-to-business connections for market access

33 Thank you for