DEMAND TENDENCIES ON ORGANIC FOOD MARKET IN EUROPE

Issue № 10, 2016, article № 8, pages 53-60

Section: Foreign news

Language: Russian

Original language title: ТЕНДЕНЦИИ СПРОСА НА РЫНКЕ ОРГАНИЧЕСКОЙ ПРОДОВОЛЬСТВЕННОЙ ПРОДУКЦИИ В ЕВРОПЕ

Keywords: ORGANIC FOOD MARKET, DEMAND, DEMAND FACTORS, EUROPEAN UNION, GROWTH CURVES, PRODUCT'S LIFE-CYCLE

Abstract: It is considered that market of organic food production is one of the most quickly developing world markets. The authors propose new methodological approaches to the demand trends analysis on organic agrifood market, which are based on using growth curves. Organic food consumption per capita is considered as a quantitative index of demand for this kind of products on the selected European markets. Dynamics of its changes is defined by successive single passing of the following stages: beginning of existence, development (growth), achievement of highest development indicators (saturation), declines and cessation of existence. Income levels and standards of living are considered as main factors determining speed of development and the potential organic food consumption volumes per capita. Accordingly, country potential volumes of organic food consumption per capita are rationalized. Based on the analysis of growth rate functions, derived from the estimated growth curves, stages of organic food life-cycle on European markets are identified. The exhaustion of potential demand for the products (in all considered countries except for Germany and Great Britain) is shown. The major factors promoting increase in demand for organic food is social policy of the states and social movements of the European countries. It is assumed, that growing demand for organic food in EU-13 markets and Asian markets will provide its further production development in main producing European countries.

Authors: Nechaev Vasilii Ivanovich, Mikhailushkin Pavel Valerevich, Saifetdinova Natalia Rafailovna, Alieva Alina Rafaelevna