Morale in the organic sector remains positive

A quarter of companies in the organic sector want to do more in the coming years, despite falling profits. According to a survey by Crédoc for Agence Bio, half of the 874 organic companies surveyed reported good morale, with artisans and traders showing the highest levels of satisfaction.

Sales growth and stability are common

Twenty-three percent of the companies reported light or sustained sales growth, with 33 percent of fully organic companies seeing similar results. Thirty percent of respondents said their sales were stable, meaning nearly half of the companies are in a neutral or positive position financially.

Profit margins are declining for many

Forty-seven percent of companies reported a drop in their profit margins for organic products since 2021. This decline is more pronounced in secondary processing companies, where 61 percent experienced falling margins, while artisans and traders saw 46 percent with stable margins.

Future development plans focus on expansion

Fifty-three percent of surveyed companies plan to grow their presence in the organic sector, often through new products or distribution channels. Newly organic companies and those fully committed to organic practices are the most likely to pursue such expansion.

Few companies plan to reduce organic involvement

Only 13 percent of companies intend to cut back or stop organic activities in the next two to three years. These are mostly companies with limited organic involvement, as 78 percent of those with less than 20 percent of their revenue from organic products are in this group. Meanwhile, a quarter of companies want to increase their organic share, particularly those with 20 to 50 percent of their turnover in organic.

Environmental and health motivations drive organic choices

For both producers and processors, environmental concerns are the main reason for their commitment to organic practices. Consumers, on the other hand, are primarily motivated by health considerations when choosing organic products.