Market and Trends

It is expected for the global market value of organic production to record an increase of 11.1% in the period 2023-2028 (HTF Market Intelligence). The growth of demand in the developing countries, most of all India and China, should contribute the most to this trend.

Organic food consumption is also on the rise from year to year.

On average, organic food consumption in the EU per capita has reached 102 euros. Generally speaking, consumers spend more on organic food every year, and some types of food, such as vegetables, have reached the above-average market share. This trend will undoubtedly be aided by the European Commission strategy “from farm to fork“ which recognizes organic food as the key sector for fulfilling the food ambitions of the European green agreement. The strategy states that the “organic food market will continue to grow and organic agriculture should be further promoted.“ The European Commission has published the Organic Action Plan 2021-2027, aiming to stimulate the supply and demand of organic products. Common Agricultural Policy (CAP) measures should also be a significant factor in achieving the goals of the Strategy for at least 25% of the agricultural land in the EU to be engaged in organic production by 2030.

The scientific study “Consumption of organic agricultural and food products in the European countries“ (Vlahović, Puškarić, Funćik, 2020.) offers interesting insights. The most significant consumption of organic products of over 200 euros per capita is in Switzerland, Denmark, Sweden and Luxembourg – the countries with high life standards, large volume production, vast assortment of organic food products as well as crystal clear awareness of the significance of organic production both in terms of health and the environment. The optimists and ecologically aware people use organic food the most.

The results of the studies, which deal with the effect of the dispositional characteristics of consumers (optimism and pessimism) on organic food consumption, show that optimistic buyers consume organic food more than pessimistic ones (Sedik et al. 2020.). Concern for the environment positively affects consumer behavior, so pessimistic buyers start to consume organic food more due to their care for the environment.

Serbia follows world trends, too

In Serbia, the surface of the land used in organic production is on a constant rise (21,265 ha in 2019 – source of info: the Ministry of Agriculture) and bearing in mind the significant increase in incentives offered by the competent Ministry, this trend will likely continue. Still, the share of organic production compared to the conventional one is still very little, so the efforts should definitely be strengthened to change this situation.

In the structure of organic plant production, fruit has the largest share, followed by cereals, industrial and fodder plants.

A smaller number of producers are engaged in organic cattle breeding production, and they usually breed sheep, pigs, cattle, poultry and bees.

Domestic market is gaining more and more importance

Intensive development of the domestic market of organic products in Serbia has been recognized noticeable in the last ten years. This trend is visible in the increasing availability and variety of organic products in retail, as well as in the wider retail channels. Organic products are present on green markets, in retail stores of larger retail chains, in specialized stores, and an increasingly present of the “doorstep supply” as for the channel of direct marketing and internet sales. The fact that they have become part of the offer of certain catering facilities, although still on a modest scale, showing that how important organic food and drinks are becoming. Initiatives in the retail market segment have met a positive response from consumers and are gradually influencing the development of public awareness and the popularity of organic products and production. However, Belgrade and other larger cities leading the way compering to at the other part of Serbia, the general market for organic products still remains at a poor level. There are several reasons for this, among them certainly distrust, but also lack of purchasing powerty. In addition, unawareness in general about organic products: lack of knowledge of organic product labels, a completely low level of public awareness and knowledge about the methods and principles of organic agriculture, the properties of organic products, the numerous positive effects that organic agriculture has on the environment preservation and protection, are also some of the causes.

However, in the light of recent global events, such as the COVID-19 pandemic, the global trend has also affected Serbia, in the sense that people began to pay more attention to environmental protection, health, social and ethical issues and start looking for fresh, less processed food from sustainable sources. There is an increasing interest in those foods that can provide safety regarding certain risks of food products. Also, the previous pandemic, as well as the current global crisis, showed that supply chains can be damaged very quickly, which brought food security and the need for shorter supply chains into focus.

Specific habits of domestic consumers

The research on consumers and their habits in the organic product market (G. Tomić and others, 2021) has confirmed the initial hypothesis: the prevailing motive for buying organic products is that they are healthy and non-GMO, organic product consumers usually buy in supermarkets, and organic products are not bought because they are expensive. Fruit and vegetables are bought at supermarkets, and the buyers are partially satisfied with the offer of organic products.

In terms of exports, fruit is the most prominent product. According to the data from Customs administration, frozen raspberry is the most exported product in the last five years, followed by other types of small fruit (blackberry, strawberry, sour cherry…).  

In the same period, exports are significantly rising, mainly in Germany, Italy, the Netherlands, and the USA.