SUBJECT: ORGANIC PRODUCT.

CLASS: MARKET ANALYSIS.

DATE: 24/05/2022.

NAMES: ZAABOUL NOUHAILA, TOUFFAH NOUJOUD, EL HARTI

KAMELIA.

I. LITERATURE REVIEW:

Morocco's organic agricultural industry has seen

remarkable expansion in recent years and shows no signs
of slowing down. Aside from the Green Morocco Plan,
Morocco has made significant efforts to encourage organic
food. In addition, Moroccans are more interested in local
products because they contribute to the country's
economic and social development. Furthermore Morocco's
organic industry has been rapidly growing since the
country's political independence and since its
establishment in 1986 , the country is working to raise the
profile of its organic food segment both at home and
abroad by capitalizing on rising demand for fresh and
value-added organic products they are beginning to acquire
foothold among local consumers, despite a great amount
of demand for organic items abroad With a strong and
well-established export market in Europe, organic products
are beginning to gain foothold among domestic customers
aswell . Moroccan organic products are divided into two
categories: medicinal and aromatic plants, and products
obtained from cultivated plants. Morocco's organic
products are produced mostly in eight regions. Agadir,
Azemmour, Beni Mellal, Fez, Marrakech, Rabat, Taroudant,
and Taza are home to the majority of organic farms.

Þ Challenges and oportunities:

Growing interest in local organic producers may aid in

overcoming one of the segment's biggest challenges:
boosting output and incorporating new technology
while maintaining economic viability. While organic
products might yield higher returns than traditionally
grown products, manufacturing costs and potential
losses from not using chemical pesticides can cut into
revenues. Elephant Vert, which manufactures bio-
fertiliser and bio-pesticide at two plants in Morocco, is
trying to cut manufacturing costs in order to make
organic agriculture more sustainable and affordable.

Þ Example:

• Maroc organic:

Maroc organic is a well-known importer and

distributor of organic items (food and cosmetics) in
Morocco, with multiple distribution locations across
the country. Their items are imported from all over
the world, namely from France, Belgium, Germany,
Spain, Italy, the United Kingdom, Canada, the United
States, Bulgaria, India, and Singapore. They help
organic and fresh brands and goods penetrate the
retail and internet markets (e-commerce). their
 relationships with supermarkets, and natural retailers
are continually being strengthened. Nowdays Organic
food is becoming increasingly popular in both
developing and developed countries. Public health
specialists feel that there have been significant
improvements in Moroccan eating habits in the field
of organic food. Organic food has only been sold in a
few local Moroccan businesses for the past ten years,
and typical supermarket merchants have yet to
properly establish the notion of "organic food."
However, organic food is increasingly becoming more
widely available. Organic food is regarded a symbol of
healthy eating in Morocco, and many agricultural
farms there develop organic agricultural goods in line
with organic food rules.

II. Problematic:

Why are customers becoming more interested in organic

products?

III. The organic trend in morocco :

Organic food options in Morocco were restricted until

recently, and could only be purchased in small specialist
stores. All major shops are now taking advantage of this
expanding customer demand by giving greater shelf space
to organic products. Organic products are now available in
most large hypermarkets, supermarkets, and even small
grocery stores and convenience stores throughout
Morocco. Many of our retail clients have told us in the last
three years that they've witnessed behavioral shifts among
high-income consumers, with a greater emphasis on
organic nutrition and ecologically friendly foods. Fresh
fruits and vegetables, meat and dairy alternatives, and
ketogenic foods all saw a significant boost in spending.
Furthermore, as e-commerce increases in Morocco, online
availability and sales of these products are growing. Most
retailers now provide products both in-store and online, as
well as home delivery.

Casablanca, as one of the Kingdom's main cities, has seen

the opening of various organic food shops and chain stores,
including La Vie Claire, a French franchise that sells 100%
organic beverages, flour, and bread, as well as cosmetic
items. According to the store's official website, it first
opened in Casablanca in 2011, offering 4,000 products, the
majority of which are imported from La Vie Claire in France.
The organic franchise's shelves are brimming with natural
and diet-style nourishment such as quinoa, pasta, rice, and
almond milk, as well as gluten and lactose-free treats.

Moroccan Legacy, a one-of-a-kind grocery store in

Bourgogne, Casablanca, is an example of this. When we
spoke with Moroccan Legacy's manager, Imane Sidqui, she
told us about the shop's extensive and diverse product line.

Þ Diet style food :

There are a variety of other stores where people can

shop for their specialized nutritional needs. The
organic market has expanded its horizons to include
diet style food for those on tight diets for health
reasons or weight management challenges.

Pain Quotidien is a bakery that targets the gluten-free

lovers in Morocco. Based in Marrakech on one of its
busiest boulevards, the shop makes gluten-free French
 pastry, brownies, cookies, cakes, pancakes and pizzas.
A diversified menu that Amina Elgaidi, manager at
Pain Quotidien spoke to Yabiladi about : «We have a
small isolated laboratory, where a specialized team
produces the gluten-free dough». The Marrakchi
bakery alongside production, distributes its gluten-
free flour and dough to people all over the country
with a price of «47 dirhams a kilo », as Amina Elgaidi
indicated.

Þ Healthy is wealthy :

The healthy is wealthy habit has been welcomed by

Moroccans lately and it was translated through the
opening of several places that offer healthy choices
for foodies. Casablanca witnessed the launch of
Carrefour Gourmet, a French supermarket that was
opened for the first time in Morocco in March 2017.
As reported by the Huffingtonpost Maroc, the
franchise is dedicated to organic, natural and fresh
alimentation. Carrefour is not the only brand that is
emerging in the organic market, as Marjane the
Moroccan hypermarket chain is now conducting an
advertisement campaign for its new BIO products that
are 100% organic.

Organic food is a healthy choice for people whether it

is available or not. A practitioner nutritionist,
Mohammed Ouhssine, informed Yabiladi :

« The human body reacts positively to all kind of foods

that have been grown free of chemicals and genetic
manipulation because they build and nurture the cells,
unlike junk food that has a negative effect on our
 health, making us consume more and as a result gain
weight. »

It is always preferable to eat organic nutrition,

however for Ouhssine these kinds of products,
vegetables and fruits are not always affordable and
sometimes unavailable. Most of all, Dr. Ouhssine
emphasizes balance in eating and shopping, be it
organic or non-organic food : «one should consume
fruits and vegetables on a daily basis ».

IV. Constraints :

While organic crop production has grown greatly in recent

years in terms of area, output, and export, several
obstacles remain, which can be stated as follows :
-A two-to-three-year conversion phase during which
production drops and the product loses value.
-An rise in manufacturing expenses due to high certification
charges.
-The lack of authorized inputs on the domestic market,
such as bio-pesticides and composts, as well as seeds and
plants used in organic farming.
-A lack of subsidies for professional entities (farmers,
cooperatives, etc.) that would ensure the sector's take-off.
-A lack of government communication and promotion of
organic products in both domestic and international
markets.
-The lack of a local market for organic products, despite the
fact that there is a considerable national demand for them.

V. Objectives :
1. Economic objectives :

àWork to improve the farming sector's productivity,

equipping the country to meet the new economic
difficulties imposed by globalisation.
à Increasing the number of commercial partners and
expanding the market for Moroccan organic goods.
à An increase in farmer income and livings standard.

2. Social objectives :

àContribute to the country's food security.

àDecrease or prevent the growing of the gap between rich
and poor within moroccan population.
àAid in the conservation of natural resources.
The state of organic production in Morocco, whose growth will
help the country achieve some of the objectives specified ; in
reality, Morocco possesses all of the components needed to
establish this form of production such as :
àMinimal chemical usage, which implies that a large portion
of this commodity is already free of all forbidden chemicals in
certified organic production, and no transition phase is
required ; all that is required is a marketing plan.
àMorocco's extended growing season.
àThe proximity of morocco to a major market in west and
central europe.
à Morocco's products are very competitive due to its vast and
low-cost labor.

3. The AMABIO objectives :

• What is AMABIO?
 AMABIO, the Moroccan Association of Organic Production
Chain Value, is a driving force, offering technical
assistance to farmers and working towards the
government on development strategies for organic
agriculture in Morocco.

• Objectives :
- Research and extension activities are being developed.
- Improving the home market's conditions for organic product
valuation, marketing, and promotion.
- Trade sector development and promotion
- Enhancing the foundation for professional conditions.

VI. Research design:

We used the exploratory research approach because we

have a broad notion and a particular topic that we wish to
investigate but no prior information on which to base our
investigation. In our situation, the exploratory research will
focus on consumer awareness and attitudes about organic
products, which are in high demand. This study will also
analyze customers' preferences for organic product
distribution channels. Research was conducted using a
literature review to learn about customer behavior, market
conditions, distribution methods, and the growth of
specialized stores for organic products. Consumer
knowledge and attitudes toward organic products are
mainly positive, according to this study, but the high cost of
organic products, as well as a shortage of organic food
outlets in Morocco, are causing problems. Consumer
knowledge and attitudes about organic goods are mainly
positive, according to this study. However, the high price of
organic products, as well as the paucity of organic food
 outlets in Morocco, have a negative impact on consumer
purchase intentions.

VII. Consumer spending analysis:

Organic consumers were split into three categories for the

purpose of the study: heavy, medium, and light. In terms of
annual spending, heavy buyers represented the top 20% of
all organic consumers, light buyers the bottom 50%, and
medium buyers the 30% in the middle. It discovered that
the market was substantially skewed towards heavy users,
with only 23% of customers accounting for 84% of total
spend.

• Light consumers: Light organic customers are less

concerned about eating healthy and more likely to
enjoy snack items than the average consumer. When
it comes to food shopping, they have a higher-than-
average tendency to stick to a strict budget and
browse around for the greatest deals. When it comes
to purchasing a product, a third of them regard
pricing to be the most significant criterion. Not
enough of them claim they are willing to pay more
for organic food for this to be one of the most widely
held beliefs in this group compared to the general
population.
• Medium consumers: Snack foods are also enjoyed by
medium organic consumers more than the typical
consumer. They are more likely than typical shoppers
to dine out frequently, follow a specific diet based on
medical advice, prefer local shops to supermarkets,
and participate in food label competitions. 36.7
 percent of people say they are willing to pay more
for organic food.
• Heavy consumers: Positive statements about organic
food frequently appear among the top 20 agree
statements, which indicate where a group's views
differ the most from the population average, as one
might expect. This group is much more likely to be
willing to pay a higher price for organic food, to buy
it whenever they can, and to consider it to be
healthier and of higher quality. This is a discerning
and self-assured group of shoppers who are far more
likely to consider themselves food and wine
connoisseurs, to seek out environmentally friendly
products, and to read the ingredients on packages
before purchasing.

VIII. Distributions of organic product:

People in Morocco are becoming increasingly health

conscious, despite the predominance of poor eating habits.
Morocco's wellness industry continues to rise year after
year. The global epidemic of COVID-19 has taught us all the
importance of immunity and good health. People are
looking for organic food wholesalers who offer a wide
variety of product categories, including cosmetics (soaps,
shampoos, lotions, creams...), aromatherapy (essential oils,
hydrolats, floral waters, macerates...), superfoods,
medicinal herbs, food supplements, and so on. In the realm
of organic products, being an organic food distributor is not
restricted to organic food products. This industry
encompasses a wide range of products.

IX. COVID-19 effect on organic product:

SARSCoV-2 had no effect on almost all of the individuals.
Only 7.6% of those confronted with the pandemic have
followed a specialized or specific diet; nonetheless, 62.4 %
have stated that their eating habits have changed since the
health crisis began. For 59.9% and 57 % of respondents,
respectively, the number of meals per day and the
consumption of organic goods changed during the
quarantine. Finally, nearly half of them believe that
following confinement, demand for natural products will
increase (Table 4).
Figure 2 depicts the association between eating behavior
during the COVID-19 health crisis and personal
socioeconomic characteristics. The first canonical axis
accounts for around 67.25 of the variation in this
relationship, while the first two account for about 85.17 % .
During the crisis, the four variables (nationality, residency,
age, and academic level) were also linked to eating habit.
The arrows for age and academic level in Figure 2 have
contrary meanings, indicating that these two criteria have
conflicting effects on eating behavior under confinement.
The remaining variables are unrelated to personal
protective equipment coverage behavior and do not affect
the percentage of explanations on the canonical axis.