ORGANIC PRODUCTS CLUSTER (OPC) Organic Agriculture and Developing Trends in Greece Dimitrios Simeonidis President
Structure of the OPC non profit organization, set up by the Federation of Industries of Northern Greece (F.I.N.G.) on March of 2006, nationwide organization, 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.
Members of the OPC Members from all over Greece manufacturing companies producers of organic products certification companies organizations associations
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
Activities of the OPC Design and coordinate events for the members, in order to promote their products and their services. Organize specialized seminars and workshops. Organize match making events between Greek and foreign companies.
Activities of the OPC Organize common participation of members at national trade fairs ensuring better economic terms of participation. Organize events in order to inform the public. Participate in European and National Projects. Inform the members about the latest trends and developments in the market area of organic agriculture.
Benefits of the OPC members Promotion of their products and services Specialized and updated information and services Support entrepreneurship in every possible way Participation in recommendations and strategic interventions at a governmental level
Greece: Country Analysis Population: 11,3 million Health consciousness market 19,3 million tourists in 2009 GDP growth 2010: -2,1% (nominal), - 4,5% (real) GDP per capita: 20.360 euros Inflation (June 2011): 3,3% Debt crisis 2010 (and continues..) Political issues (tax policy, labor law, public sector)
Brief History of organic sector in Greece 1982: 1st Production of Organic Raisin 1985: Association of Eco-Agriculture of Greece (AEOG) 1986: 1st Production of Organic Olive Oil 1993: Implementation of European Regulation 2092/91 1996: Implementation of European Regulation 2078/92Α
3.500.000,00 Development of organic agriculture in Greece Source: Hellenic Ministry of Rural Development and Food 3.000.000,00 2.500.000,00 2.000.000,00 1.500.000,00 1.000.000,00 500.000,00 CROPLANDS GRAZING TOTAL 0,00 2004 2005 2006 2007
Development of organic agriculture in Greece Average size of organic farms Source: Hellenic Ministry of Rural Development and Food YEAR 2002 2003 2004 2005 2006 2007 ACRES 31 23 54 58 22 29
NUMBER OF PRODUCERS 25.000 23.618 23.480 Development of producers 20.000 15.000 14.551 Source: Hellenic Ministry of Rural Development and Food 10.000 5.000 5.818 6.028 8.269 0 2002 2003 2004 2005 2006 2007
Development of manufacturing companies by sector MILLING PRODUCTS ANIMAL FEED MEAT PRODUCTS DAIRY PRODUCTS FRUITS & VEGETABLES 2007 2002 OTHERS PLANT & ANIMAL FATS AND OILS 0 100 200 300 400 500 600 Source: Hellenic Ministry of Rural Development and Food
Organic Olive Oil DOMESTIC MARKET 4.500 4.000 3.500 3.000 TONES 2.500 2.000 1.500 1.000 Production Exports Domestic Consumption Source: Estimates of market, ICAP 500 0 2005 2006 2007 2008
TONES Wine made from Organically Grown Grapes DOMESTIC MARKET 5.000 4.500 4.000 3.500 3.000 2.500 2.000 1.500 1.000 500 Production Exports Domestic Consumption Source: Estimates of market, ICAP 0 2005 2006 2007 2008
TONES Organic Citrus DOMESTIC MARKET 9.000 8.000 7.000 6.000 5.000 4.000 3.000 2.000 1.000 Production Exports Domestic Consumption Source: Estimates of market, ICAP 0 2005 2006 2007 2008
EVOLUTION OF THE BRANCH OPERATORS 30.000 25.000 20.000 15.000 10.000 5.000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Source: http://www.organicworld.net
Market Trends Rising consumers demand Significant increase of the outlets Wider Variety of products Entrance of new big companies
Distribution Channels in Greece Super markets Groceries Organic Food Stores Other companies, such as bakeries, duty free etc. Internet Open Farmers Markets
Other spots 4% Commercial/ Distribution Channels Organc Products Shops 46% Super Markets 50% Source:Estimates of market, ICAP
Open markets of organic products in Greece Attica: Thessaloniki: Chalkidiki: Pella: Volos: Trikala: Larisa: Crete: 24 5 1 1 1 1 1 3 The operation of the open markets started 15 years ago
The progress of organic products In the field of organic fruit and vegetables, the problem is not the lack of demand, but the lack of offer The demand of fresh organic products is covered mainly through imports The variety of organic products in shelves is raising The non-food organic products are entering the market
Germany 5.850 France United Kingdom 2.591 2.494 Italy 1.970 Switzerland Austria Denmark Sweden Netherlands Spain Belgium Norway Ireland Finland Portugal Czech Republic Russia Greece Poland 905 810 724 623 537 350 305 131 104 74 70 68 60 58 50 Sales of Organic Products in Europe for 2008 In million http://www.organicworld.net
Austria Belgium Bulgaria Cyprus Czech Republic Denmark Estonia Filandia France Germany Greece Hungary Ireland Italy Latvia Lithuania Luxembourg Malta Netherlands Poland Portugal Romania Slovakia Slovenia Spain Sweden United Kingdom 14.000.000 Arable lands in EU including crops that are in transition stage 12.000.000 10.000.000 8.000.000 6.000.000 2009 2008 2007 4.000.000 2.000.000 ACRES 0 http://www.organic-world.net
Austria Belgium Bulgaria Cyprus Czech Denmark Estonia Filandia France Germany Greece Hungary Ireland Italy Latvia Lithuania Luxembourg Malta Netherlands Poland Portugal Romania Slovakia Slovenia Spain Sweden Un.Kindom BRANCH OPERATORS IN Ε.Ε. 50.000 45.000 40.000 35.000 30.000 25.000 20.000 15.000 10.000 5.000 0 2009 2006 2003 http://www.organic-world.net
Main weaknesses of the sector in Greece Lack of appropriate education and information/ awareness Incapability of producers organisation/ management Incompatible offer and demand
ORGANIC PRODUCTS CLUSTER (OPC) Organic Cosmetics in Greece Dimitrios Simeonidis President
Certification Since 1996 different organizations have been trying to work on harmonization programmes for organic products 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.
Market overview Total cosmetics market size: 950 million 1 Natural & bio cosmetics market size: 60 million 2 Growth rate estimation of NPC market for 2012-15: 9% Major players: KORRES, Apivita (Greek companies) Other players: lavera, Macrovita, Bioplasis, Weleda, Jason, Melvita, Logona, etc. Market share per category (last 8 years): Skin Care 44-48%, Hair Care 29-33%, Make-up 11-12%, Aromas 11% 3 ( 1 University of Macedonia - Research, 2 Healthyliving.gr)
Market overview Market share per category (last 8 years): Skin Care 44-48% Hair Care 29-33% Make-up 11-12% Aromas 11% Source: ICAP Research
Market overview Segmentation by category in Greece 2010 Make-up 10% Aromas 9% Others 5% Skin Care 48% Hair Care 28% Source: Estimation Beauty life Greece
Market overview Sales channels: Pharmacies: >9.500. Almost 1.000 sell natural-organic cosmetics Natural-organic shops: around 450 Beauty centers: around 200 Department stores: 152 (Hondos Center 79, Gallery de Beaute 27, Sephora 25, Aroma Stores 12, Notos Galleries 8, Attica 1) S/Ms with organic department: 1.061 (AB Vasilopoulos-Delhaize Group 232, Carrefour 280, Sklavenitis 79, Veropoulos 240, Masoutis 230) Tourist shops selling cosmetics: <1.500 SPA / Hotels: around 160 Source: Beauty life Greece
ORGANIC PRODUCTS CLUSTER (OPC) Dimitrios Simeonidis President