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- THE GIANTS’ ORGANIC PASSION
THE GIANTS’ ORGANIC PASSION
The sector has attracted attention by posting double digit growth for the last 10 years.
The global organic products market is worth a total of $46 billion. Until the latest economic crisis, the sector was posting double digit growth every year. The demand for organic products is continuing to grow steadily by $5 billion per year.
In Turkey, the organic products market is still in its infancy. On their own, organic foods account for $40 million. When exports and the domestic market are both included then the figure is estimated to reach $100 million. Experts expect the market to record double digit growth in the next five years.
According to a study by the Aegean Exporters’ Union, the foreign sales of the organic products market in Turkey is forecast to reach $500 million in three years and $1 billion in five years.
HIGH POTENTIAL
There are approximately 325 large and small companies producing for the organic market in Turkey. Giant groups such as Do€an Holding, Ya?ar Holding, Esas Holding and Ülker are concentrating on this sector through different brand and companies. Do€an Holding is active in the milk category in this market with Do€an Organic Products, while Esas Holding City Farm is active in categories such as vegetables, fruit, spices, meat and dried foods, and Ülker is active in organic baby foods with its Ülker Hero Baby brand. Large retail giants such as Migros and Carrefoursa are getting ready to increase the number of organic products on their shelves. Carrefour General Manager Guillaume Vicaire says that at the moment their stores in Turkey have 13 natural products and that they are aiming to increase this to 20 next year and 50 by 2013.
A $10 BILLION MARKET
Even if the organic products market in Turkey is still in its infancy, it has already surpassed many other countries, particularly in textiles. According to the data for 2006-2007, it ranked first in production of organic cotton with 41 percent. Turkey was followed by India with 25 percent, the US with 7.7 percent and China with 7.3 percent.
According to data from the Textile Research and Development Association (TADER), the market grows by 30-40 percent each year and it looks as though this trend will continue over the next five years.
The global organic textiles market is expected to reach $10 billion in 2012-213. In order to reach such a size, it will grow tenfold in just five years. According to this projection, Turkey’s share will be close to $3 billion.
THE SECTOR IS DEPENDENT ON FOREIGN SALES
Esas Holding is another giant group which is interested in the organic products market… It handles its organic production activities through its City Farm company. City Farm General Manager E?ref Durace says that, at the moment, the organic sector is entirely dependent on foreign sales.
In making an evaluation of prospects for growth in this field, Durace says that growth depends on the price difference between normal products and organic products. But he says that the mistaken attitudes of producers and sales outlets mean that a closing of the gap currently appears unlikely.
GROWING DESPITE THE CRISIS
Even though turnover in the organic milk market is currently small, it is one of the areas with high potential. Ergun Akyol, the general manager of P›nar Süt, which produced the first long life organic milk in Turkey in 2005, says that the organic milk market in Turkey grew by 28 percent in 2008 compared with the previous year and reached 1,414 tons. He believes that the market is growing on a tonnage basis despite the crisis and that it will have a total capacity of 5,000 tons within five years.
Do€an Organic Products General Manager ‹lhan Ba?aran says that, even though organic milk only accounts for a small part of the total market, it is striking that milks for growth, milks for children and milks for expectant mothers have a 14 percent share of the market.
A PROMISING FUTURE
Even though the organic products market still accounts for an extremely small share of the total, its potential means that there are areas in which many players are interested. One of these areas is the baby food category. At the moment Ülker is the market leader with its Hero Baby brand. The company offers consumers 12 different kinds of organic baby food. According to the data for the end of 2008, the size of the baby food market was 9.332 million kilos. The organic baby food market was around 872,391 kilos. On a tonnage basis, the market grows by an average of 8-9 percent a year. Another area in which the organic market in Turkey is still in its early stages is jam. Koska General Manager Nevzat Dindar notes that organic jam accounts for a share of around 1-2 percent of the total jam market. Another area in which the market is in its infancy is cosmetics. In Europe, certified natural cosmetics account for 2 percent of the overall cosmetics market. In Germany the rate is around 6 percent. In 2012, these rates are expected to reach 6 percent in Europe and 10 percent in Germany.
In Turkey, the organic products market is still in its infancy. On their own, organic foods account for $40 million. When exports and the domestic market are both included then the figure is estimated to reach $100 million. Experts expect the market to record double digit growth in the next five years.
According to a study by the Aegean Exporters’ Union, the foreign sales of the organic products market in Turkey is forecast to reach $500 million in three years and $1 billion in five years.
HIGH POTENTIAL
There are approximately 325 large and small companies producing for the organic market in Turkey. Giant groups such as Do€an Holding, Ya?ar Holding, Esas Holding and Ülker are concentrating on this sector through different brand and companies. Do€an Holding is active in the milk category in this market with Do€an Organic Products, while Esas Holding City Farm is active in categories such as vegetables, fruit, spices, meat and dried foods, and Ülker is active in organic baby foods with its Ülker Hero Baby brand. Large retail giants such as Migros and Carrefoursa are getting ready to increase the number of organic products on their shelves. Carrefour General Manager Guillaume Vicaire says that at the moment their stores in Turkey have 13 natural products and that they are aiming to increase this to 20 next year and 50 by 2013.
A $10 BILLION MARKET
Even if the organic products market in Turkey is still in its infancy, it has already surpassed many other countries, particularly in textiles. According to the data for 2006-2007, it ranked first in production of organic cotton with 41 percent. Turkey was followed by India with 25 percent, the US with 7.7 percent and China with 7.3 percent.
According to data from the Textile Research and Development Association (TADER), the market grows by 30-40 percent each year and it looks as though this trend will continue over the next five years.
The global organic textiles market is expected to reach $10 billion in 2012-213. In order to reach such a size, it will grow tenfold in just five years. According to this projection, Turkey’s share will be close to $3 billion.
THE SECTOR IS DEPENDENT ON FOREIGN SALES
Esas Holding is another giant group which is interested in the organic products market… It handles its organic production activities through its City Farm company. City Farm General Manager E?ref Durace says that, at the moment, the organic sector is entirely dependent on foreign sales.
In making an evaluation of prospects for growth in this field, Durace says that growth depends on the price difference between normal products and organic products. But he says that the mistaken attitudes of producers and sales outlets mean that a closing of the gap currently appears unlikely.
GROWING DESPITE THE CRISIS
Even though turnover in the organic milk market is currently small, it is one of the areas with high potential. Ergun Akyol, the general manager of P›nar Süt, which produced the first long life organic milk in Turkey in 2005, says that the organic milk market in Turkey grew by 28 percent in 2008 compared with the previous year and reached 1,414 tons. He believes that the market is growing on a tonnage basis despite the crisis and that it will have a total capacity of 5,000 tons within five years.
Do€an Organic Products General Manager ‹lhan Ba?aran says that, even though organic milk only accounts for a small part of the total market, it is striking that milks for growth, milks for children and milks for expectant mothers have a 14 percent share of the market.
A PROMISING FUTURE
Even though the organic products market still accounts for an extremely small share of the total, its potential means that there are areas in which many players are interested. One of these areas is the baby food category. At the moment Ülker is the market leader with its Hero Baby brand. The company offers consumers 12 different kinds of organic baby food. According to the data for the end of 2008, the size of the baby food market was 9.332 million kilos. The organic baby food market was around 872,391 kilos. On a tonnage basis, the market grows by an average of 8-9 percent a year. Another area in which the organic market in Turkey is still in its early stages is jam. Koska General Manager Nevzat Dindar notes that organic jam accounts for a share of around 1-2 percent of the total jam market. Another area in which the market is in its infancy is cosmetics. In Europe, certified natural cosmetics account for 2 percent of the overall cosmetics market. In Germany the rate is around 6 percent. In 2012, these rates are expected to reach 6 percent in Europe and 10 percent in Germany.
