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Posted:26-October-2016

A healthy looking organic market for Riverford

When veg boxes first entered the market, they were much more than just a box full of vegetables. They enabled small scale farmers to earn a living and bridge the gap between the field and the table, cutting out the middle man (mainly supermarkets) and reducing food miles. Today the competition amongst box schemes is on the increase but those founding principles still remain.

After a worrying dip following the last recession, the latest Soil Association report states that the organic market is looking healthy again, in fact for its third consecutive year it has seen growth and is currently worth nearly £2 billion. This growth has been reflected in Riverford Organic Farmers’ sales, which has shown an 8% increase in sales on the prior year.

A Competitive Market

Riverford remains one of the largest and leading home delivery schemes but competition is growing. Over the last year, new smaller box schemes entering the market has increased by 11%.

To remain competitive, companies have to stay relevant and original. For Riverford, that’s been done by introducing new product lines and listening to what customers want.

The overall growth in the organic market is primarily down to the great work bodies like the Soil Association have been doing. Promotion of organic products is high and consumers are becoming increasingly aware of what they are eating and where their food has come from.

There is obviously some concern following the recent referendum result, but as yet, it is too early to establish how or even if, Brexit will affect the organic market over the next couple of years. For the moment though, the market continues to out-perform the non-organic grocery market which has seen a decrease. In the same period organic sales saw a growth of 4.9% whilst non-organic saw a drop of 0.9%.

The Role of Social Media

Social media is playing a big part in increasing awareness, with more and more people interacting, sharing news, recipes and experiences online and taking more responsibility for their carbon footprint. Riverford has encouraged online interaction with their brand by launching its dedicated recipe channel on YouTube; a marketing tool that has proven to be effective at engaging customers.

Research has shown that the highest increase of people purchasing organic produce are the 18-29 year olds. Awareness amongst the millennial generation suggests they are more likely to purchase organic food to fit their personal health and wellbeing lifestyle, choosing quality and provenance.

There are five main reasons why consumers are switching to organic products, these stated as being: no pesticides, better flavour, more environmentally friendly, higher animal welfare and quality of food. Fruit and vegetables are being cited as the first products consumers make the organic switch to when adopting a more organic lifestyle.

Increase in Home Deliveries

The increase in home deliveries can also be attributed to the fact many supermarkets have reduced their organic product lines and given up shelf space to other goods.
Consumers are now choosing a home delivery and shopping at smaller stores instead. By doing this they are also supporting smaller, independent businesses.

Even cost conscious consumers are switching to home delivery box schemes in an effort to avoid the trappings of the supermarkets and that £20 shop for a pint of milk that most of us have experienced.

Riverford have had to adapt to the change in habits over time. Consumers that were once happy to receive the same vegetables week in and week out as long as it was organic have now been replaced with those that want variety and the option to substitute items they don’t like. Customers want to be able to make an interesting meal and learn new techniques along the way. This obstacle is being overcome with the introduction of tailor made recipe cards, cooking hints and tips and the ever increasingly popular recipe box range.

Exciting Business Prospects

On the whole this is an exciting time to become involved in the organic market. Customers are historically loyal, once they’ve settled in to life with a veg box. As long as the customer receives great produce and service, a business within this sector will flourish and remain profitable.

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