Organic Industry

ORGANIC INDUSTRY – From movement to a booming

OUR INDUSTRY... GREEN, ETHICAL & BOOMING!

ONE Group and Miessence are proud participants in a growing industry that prioritizes health and sustainability. As developers of the first comprehensive range of products to be certified organic to food industry standards we are world leaders of this growing trend. If you have not done so already you can view an overview of our organic business opportunity.

ORGANIC BEGINNINGS

The organic movement began at the same time as industrialized agriculture. It evolved through the ’50s and ’60s with the launch of such books as Silent Spring by Rachel Carson, which exposed the toxic effects of pesticides, through what is now termed bio-magnification. A process whereby synthetic chemicals used in agriculture magnify (increase in concentration) through the food-chain.

During the ’70s, the development of the organic market was stimulated by growing consumer interest in health and nutrition, as well as the increasing importance of preserving the natural environment. More recently the movement has been given significant impetus by events such as outbreaks of Bovine Spongiform Encephalapathy (BSE or Mad Cow Disease), and the controversy surrounding Genetically Modified Organisms (GMOs), which have motivated people to search for healthy alternatives.

A BOOMING, ETHICAL INDUSTRY

The organic industry has achieved compounded growth of 23% pa for seven consecutive years, while the natural and organic cosmetic sector grew by a massive 39% in 2001 alone. Our range or products is the world’s first and currently only fully certified organic skin and body care products.

Recent market research has shown that consumer demand for organics is growing rapidly worldwide. Through cutting-edge research and development, we intend to progressively release dynamic, healthy, first-to-market innovations in the organic sector.

Globally, sales in the personal care market, including natural personal care, reached USD$122 billion in 2000 and are growing 1.6%. In the USA, the entire Health and Beauty Care market is almost USD$40 billion and is expecting 3.4% annual growth.

In contrast, the trend towards natural ingredients is running through every segment of personal care with sales in the USA in this area, reaching USD$1.56 billion in 2001 and growing at 10%. This segment is expected to grow 6%-7% annually over the next few years.

USA
Consumer sales of organic products in the US reached US$5.6 billion in 2000, a rise of 19% from 1999. If organics sustains this annual growth (and there is no indication it will not as sales in 2001 reached US$9.4 billion) the organic segment will be worth between US$13 – US$18 billion by 2005.

EUROPE
Research across seven European countries found that organic spending would nearly double over the next 5 years. By 2006, 58% of European consumers will choose to use organic products. During 2000, 29 million people in the UK said they had consumed organic food, a figure that represents almost half the population. There are 142 million consumers of organic food in Europe, showing that organic food has hit mainstream after many years in ‘alternative’ niche markets.

The UK, which had organic sales of GBP 605 million in 2000 and is expected to reach GBP 1 billion by 2003 will continue to be the key market.

JAPAN
The Japanese are the largest per capita consumers of organics in the world and are substantial importers of organic consumer products. Japan had a national market value of US$1.5 billion in 1998 and has a current estimated value of US$3.2 billion. The majority of organic products in Japan are distributed through a ‘tei-kei’ arrangement, which is a type of cooperative.

Market 2001 Retail sales

MARKET 2001	RETAIL SALES	CURRENT GROWTH RATE
USA	US$9.4 billion	19%
Europe	US$9.2 billion	22% (UK 2001, 40% growth to US$0.8 billion)
Oceania*	US$9.0 billion	21% (Japan 2001, 21% growth to US$3.2 billion)

* North & South-East Asia, Australia & New Zealand