Organic Packaged Food in Poland

PROSPECTS

Expansion of education and distribution necessary to maintain sales

The main issue with organic packaged food in Poland over the review period was a lack of knowledge about the properties of organic food and a poorly developed distribution network. Educational activities should be conducted not only by producers and retailers, but also by appropriate associations, even where groups of organic manufacturers sponsor them.

Certification a main tool in promoting organic packaged food

The packaging of organic packaged food has been an important factor for consumers when deciding to purchase. As they pay more for organic variants, consumers need to be completely certain that the product has organic properties, as stated on the packaging by the appropriate logo or certificate granted by an accredited association.

Lofty prices cripple the category’s performance

Organic food is on average 20-30% more expensive than regular variants in Poland, which is off-putting to consumers among whom price remains the most important factor when selecting food products. Nevertheless, the volume sales of organic packaged food are expected to increase, which will cause prices to fall as the scale of production increases and distribution widens across the entire country.

COMPETITIVE LANDSCAPE

Domestic players settle in

Even though the leading company in organic packaged food in 2018 was international player Hipp Polska, the majority of companies with the highest sales were domestic manufacturers and specialist retailers offering organic products under their own private label. Such companies were able to find their own niche, offering products at competitive prices online and directly reaching environmentally-aware consumers through organised events, organic associations and through word of mouth.

Lack of incentive for the main players

The main players in packaged food are not expected to invest heavily in organic packaged food as other HW categories offer a better return on investment, due to a higher sales base and greater consumer awareness of the positive aspects of these products. Multinational players such as Danone, Unilever and Nestlé have not shown much interest in launching organic products under their flagship brands mainly because the majority of consumers did not look for organic features in HW products, focusing on other aspects, such as the price, natural healthy properties or fortified features.

Leading position of small retailers

Organic packaged food is in a unique situation in the overall Polish packaged food market. While in most cases discounters, supermarkets and hypermarkets lead sales, in organic packaged food it is the small retailers, which are prospering.

Files are delivered directly into your account within a few minutes of purchase.