Organic Packaged Food in Switzerland

2020 IMPACT

Categories shows strongest growth within health and wellness packaged food

In 2020, organic packaged food will post the strongest growth of all health and wellness packaged food categories. During times of uncertainty and health scares, consumers generally turn to organic food, which is considered healthier, contains fewer artificial ingredients, and is of the highest quality.

Strong growth in organic milk formula as consumers increasingly conscious of what they give to their children

Organic baby food is growing in popularity, with parents moving away from products containing artificial ingredients such as preservatives and synthetic colours and embracing products with all-natural ingredients. Sustainability is also a hot topic, with manufacturers emphasising the sustainable attributes of their products, for example the use of sustainable palm oil by Hero’s Organix brand or the Migros Mibébé line, with the latter’s products all sourced from sustainable agriculture and containing a minimum of 90% of Swiss raw materials from farms certified by Bio Suisse.

New launches from Zweifel and Migros focus on domestic production

Local players continue to focus on offering organic products that are produced locally. Consumers tend to trust these products due to the strict quality controls in Switzerland and also appreciate the reduced environmental impact of purchasing domestic organic packaged food.

RECOVERY AND OPPORTUNITIES

Competition set to intensify amongst leading players and private label discounters

Over the forecast period, organic packaged food is expected to post positive performance, with competition expected to intensify between Migros Genossenschaftsbund, Coop Genossenschaft and the German discounters. Coop’s Naturaplan will remain the leading organic brand over the forecast period but will be increasingly challenged by Migros’ Bio brand.

Consumers increasingly show preference for domestic products due to being safer and more environmentally sustainable

Over the forecast period, it is expected that there will be a strong category focus on “Swissness” as consumers increasingly favour locally sourced products. Demand for regional Swiss products will likely remain high because these products are considered safer than imported products due to the strict quality controls in packaged food in Switzerland.

Supermarkets to remain leading channel; e-commerce to show strong growth

Supermarkets is expected to remain the leading distribution channel, followed by hypermarkets for organic packaged food. The channels are well established with a wide range of products, including cheaper private label options, and form part of a weekly shopping habit that will be hard to change for many consumers.