Organic sweet grocery: where the big groups stand ?

Today the organic sweet grocery market has increased by 24,7% compared to last year. These last three years, the biggest grocery groups (Nestlé, Barilla, Unilever…) have orientated their strategies to produce more and more organic products. 

To be easily spotted by the consumer, these big players have been working on their packaging: the « organic » label is more visible on the pack with specific color codes. It has become essential for the big brands to make their organic offer stand out as those ranges are placed in the conventional aisle where the trafic and sales turnover are more important, but where the offer is wider...

Although the organic trend has been profitable for all the big players (For example, Mondelez has increased its organic chocolate (Côte d’Or) sales from €4,8M in 2018 to €8,7M in 2019), they all agreed that sourcing is a very difficult issue to face. It takes time to find and secure supplies, considering the high volumes at stake. Mondelez which is used to source its cocoa beans from Africa had to go to the Dominican Republic for its organic beans. 

Besides sourcing, price remains one of the main obstacle to the development of the organic offer: organic raw materials are almost twice as expensive as the conventional ones.

If most industrials agree that the organic segment is a key driver, the future is not «organic only ». They are considering more global strategies including CSR strategies and new environmental strategies, while supporting agricultural transition. 

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