Organic Packaged Food in Portugal

PROSPECTS

Organic packaged food consumption remains a lifestyle choice

The main shoppers of organic packaged food products are women with the over 45 year olds most concerned about the purchase of organic products. Such consumers focus on living healthy lifestyles and seek out food produced without artificial ingredients.

Parents increasingly attracted to organic baby food

In line with global trends, there has been an increasingly visible trend towards more natural, preservative-free products in baby food as parents want to offer the best quality and healthier options for their babies. Free from preservatives and no artificial flavours, no salt, no added sugar or use of olive oil are some routes brands have taken when industry players are unable to fully embrace the organic concept.

Sonae embraces health and wellness via growth in number of organic products

Consumer demand for healthy lifestyles has grown exponentially and has stimulated Sonae MC to focus on health and wellness. For instance, Sonae Group invested in a licence business by acquiring the Go Natural organic and naturally healthy brand.

COMPETITIVE LANDSCAPE

Artisanal leads through organic bread

The high popularity of organic bread has consolidated the presence of artisanal producers in organic packaged food. Whether seeking regular or organic bread, consumers tend to shop in traditional bakeries to acquire fresher and tastier products.

Growing popularity of organic baby food thanks to presence of Nestlé Portugal

With the low birth rate in Portugal limiting volume growth potential, players are investing their resources in added value, convenience and innovative offers in baby food. There was visible category premiumisation within organic prepared baby food, with increasing organic options supporting stronger value growth.

Changing consumer habits boost sales of organic private label products

With significant growth of small- and medium-sized supermarkets in the country, particularly in city centres, consumers are eschewing their large weekly or monthly shops in hypermarkets for more frequent shopping trips in smaller and more-convenient-modern grocery retailers. The portfolio of products available to consumers is necessarily different due to space limitations, favouring both private label and leading major brands.

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