Ingredion: Organic claims rise amid pandemic, consumers call for trust and transparency
24 Sep 2020 --- With the world’s attention on the health and well-being of the planet and its people, Ingredion believes organic food can help build trust with consumers.
“The organic market has doubled in size over the last decade, with one in seven product launches now being organic,” says Constantin Drapatz, senior marketing manager for Ingredion EMEA. “This presents a huge opportunity for industry,” he maintains.
The growing trend has mainstream appeal in all applications, whether it’s baby food, bakery, dairy or ready meals. The organic food market in EMEA has experienced continuous growth in all categories, achieving a CAGR of over 5 percent, according to proprietary research from Ingredion.
Trust in traceability
In recent years and increasingly throughout the first half of 2020, food safety concerns heightened for many consumers.
For many consumers, concerns around food safety have risen. For manufacturers, this makes communicating and building trust a key priority. “As one of the most heavily regulated and consumer-driven food markets in Europe, organic food presents an opportunity to build consumer confidence,” explains Drapatz.
“An organic label is more than a claim, it offers meaningful value for consumers,” he stresses.
“The organic label represents ethical farming, which is closer to nature. Reassured by its regulatory standards and rules, its restricted use of pesticides and control of the use of non-organic ingredients, organic has a positive impact on changing buying habits. It is now in the top three consumer claims.”
According to Ingredion's ATLAS consumer research 2019, 51 percent of consumers would switch brands for an organic claim.
Understanding providence
As consumers become increasingly savvier, they want to understand exactly what goes into their food, how it’s made and where it comes from.
“Organic food delivers on the transparency of sourcing, supply and formulation, which increases appeal to those consumers who are now spending more time in the kitchen, cooking and preparing homemade food,” Drapatz notes.
Moreover, organic food must go through rigorous regulatory compliance, which brings peace of mind to consumers. When labeled “organic,” this serves as assurance that products have been produced and stored following a strict set of standards.
Consumers are now looking to F&B manufacturers to help them stay well, in light of the COVID-19 pandemic.
“Nearly half of them claim to be eating healthier (46 percent), and 33 percent are eating and drinking natural or organic products,” reveals Drapatz, citing an Innova Market Insights COVID-19 Consumer Survey (2020).
Is organic a scalable option?
Despite the demand for organic as a key consumer trend, some manufacturers have been hesitant to explore and formulate products, Drapatz says.
“Sourcing of supply have been raised as concerns as low volumes and inconsistent deliveries prevent future growth and planning. Forty-eight percent of food manufacturers cited reliability and ingredient availability as their top supply chain priority in Ingredion’s ‘Mind the Innovation Gap’ report,” he further details.
Manufacturers want a consistent volume of quality certified ingredients with uninterrupted delivery, and the supply chain has adapted rapidly to meet demand.
“In 2018, organic land increased by 1.25 million hectares – a growth of 8.7 percent – and now 15.6 million hectares of farmland is organic in Europe, making this a scalable solution,” Drapatz argues.
Organic farming demonstrates sustainability and transparency across entire supply chains, strengthening manufacturers’ messaging to consumers. “Maintaining strong dialogs across supply chains can help to strengthen understanding and maintain the ability to manage supply in the long term,” he adds.
Regulatory changes present fresh opportunities
Organic farming demonstrates sustainability and transparency across supply chains, strengthening manufacturer messaging to consumers.
When it comes to ingredient selection, manufacturers looking to attract consumers who seek organic labels will need to comply with the new EU regulations.
Under the new organic regulation, now proposed to enter into force on January 1 2022, processed foods can still be labeled as organic provided that 95 percent of the agricultural ingredients are of organic origin or produced organically.
New lists on permitted food additives and process aids were published in Implementing Regulation (EU) 2019/2164 in December 2019, and these changes will be carried through to the new regulation.
In addition, there is a proposal for a regulation restricting non-organic agricultural ingredients authorized for use in the production of processed organic food.
“Under this proposal, non-organic starch from rice and waxy maize will be removed from use in organic foods. Transition measures will apply to enable a phased approach to the changes,” explains Drapatz. For non-organic agricultural ingredients, the new list comes into effect on January 1, 2023.
“Manufacturers looking at NPD or reformulation of organic foods should do so under the new regulations as a minimum. This will help to prevent any delays or needs to reformulate in the future and ensure they are appealing to the most discerning consumers,” Drapatz asserts.
Consumption patterns evolve
With more and more consumers turning to vegan, plant-based or flexitarian diets, helping to fuel the organic sector’s growth, this represents a considerable market and brand opportunity for industry, Ingredion flags.
“The organic market presents an opportunity there for the taking, but having the right ingredient solutions and technical expertise is crucial to capitalize on this,” notes Drapatz.
“Speed-to-market will be essential because with or without your products on the supermarket shelves, consumers will find a way to satisfy their needs. Now is the time to invest in this burgeoning market to get organic on every table,” he concludes.
Edited by Elizabeth Green
