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Getting to know the

Canadian Organic System
Tia Loftsgard, Executive Director, Canada Organic Trade Association

February 9, 2018
About the Canada Organic Trade
Association

The Canada Organic Trade Association is the membership-
based trade association for the organic sector in Canada,
representing all points along the organic value chain. COTA
focuses on four strategic areas: government relations,
market access, market research and consumer education.
Consumer Preferences
Familiarity with Canada Organic

Source: COTA Consumer Ipsos Polls, June 2017.
Logo Association:
Baby Boomers (54%) are more
likely to associate the logo with
Pesticide free
pesticide free
Good for the environment
Non-GMO
Atlantic Canadians (45%) are
Organic buyers (39%) are more more likely to associate the
likely to associate the logo being Strong Standards logo with being good for the
with good for the environment environment
More tasty/healthy
Animal welfare
Millennials (17%) are more
likely to associate the logo with Good labour practices
good labour practices
Available
Affordable Gen X’ers (27%) are more likely
to not associate the logo with
None of the Above anything

• 17. Having seen the logo, what, if anything, do you associate with this logo?
• Base: All Respondents (unwtd) (n=1002) 5
Demographics of buyers

Source: COTA Consumer Ipsos Polls, June 2017.
Household type Generation Education

Source: COTA Consumer Ipsos Polls, June 2016 and 2017.
Where are the
organic
buyers?

69%
74% 65% 64%
62%
63%

Source: COTA Consumer Ipsos Polls, June 2017.
Organic purchasing points of sale

80% 39% 24% 23% 4%

Regular Wholesale Natural Farmer- Online
Grocer Health direct
Source: COTA Consumer Ipsos Poll, June 2017.
Motivations

Source: COTA Consumer Ipsos Polls, June 2016.
Influences & Barriers

$$$

Source: COTA Consumer Ipsos Polls, June 2016 and 2017.
Organics & Accessibility
Percent of weekly grocery budget spent on organic Percent of Canadians who purchase
items organic items weekly by income
bracket
$100K+ 24% 27% 19% 30%
Income bracket 2017 2016
$60K -
28% 21% 19% 33% $100K 70% 58%
<$100K
$60-100K 67% 59%
$40K -
<$60K
17% 24% 20% 39% $40-60K 61% 60%
<$40K 64% 53%
<$40K 18% 24% 23% 36%

Light buyer 1-9% Medium buyer10-24% Heavy buyer 25-100% Does not buy organic

Source: COTA Consumer Ipsos Polls, June 2016 and 2017.
Purchasing weekly

Source: COTA Consumer Ipsos Polls, June 2016 and 2017.
Public trust

48%
September 2017

44%
June 2017

39%
June 2016
Source: COTA Consumer Ipsos Polls, June 2016, June 2017 and September 2017.
Trust in Food Claims

Made in Canada 55% 39% 6%

Local 54% 40% 7%

Canada Organic certified 44% 42% 14%

Free range/ Grass fed 40% 48% 12%

Non GMO, or non-genetically
engineered
35% 46% 19%

Natural / All natural 34% 48% 18%

USDA Organic certified 30% 50% 20%

Trustworthy (7-9) 4-6 Not Trustworthy (1-3)

Source: COTA Consumer Ipsos Polls, June 2017.
Trust in Food Claims:
• Trust in the ‘Canada Organic certified’ claim has increased significantly since 2016 – up 5 points to 44%.
While ‘Made in Canada’ and ‘Local’ remain most likely to be seen as trustworthy, claims about food being free range
and non-GMO have seen stronger gains, year over year.
% Trustworthy
Trustworthy (7-9) 4-6 Not Trustworthy (1-3)
2016
Made in Canada 55% 39% 6% 53%

Local 54% 40% 7% 53%

Canada Organic certified 44% 42% 14% 39%

Free range/ Grass fed 40% 48% 12% 36%

Non GMO, or non-genetically engineered 35% 46% 19% 29%

Natural / All natural 34% 48% 18% 31%

USDA Organic certified 30% 50% 20% 27%

• 11. On a scale of 1-9, where 1 is not at all trustworthy, and 9 is completely trustworthy, please rate how trustworthy the following food claims are to you:
• Base: All Respondents (unwtd) (n=650) 16
Trust in Food Claims:
%TRUSTWORTHY AGE
Women are more Total 18-34 35-54 55+
likely to trust ‘local’ Made in Canada 55% 59% 56% 50% Millennials tend to
(59%) and ‘Canada Local 54% 54% 58% 50% be more trusting of
Canada Organic certified 44% 52% 43% 38%
Organic certified’ Free range/grass fed 40% 44% 43% 34%
the majority of
(48%) products. Non GMO 35% 43% 33% 30% food claims.
Natural/All natural 34% 39% 37% 27%
USDA Organic certified 30% 40% 29% 24%

Those spending 25-40% of their %TRUSTWORTHY Average % of Weekly Grocery Budget Spent on Organic Food
weekly grocery budget on organic Total 0 1 - 9% 10 - 24% 25 - 49% 50 - 74% 75 - 100%
products tend to be more trusting Made in Canada 55% 33% 34% 40% 42% 38% 18%
of ‘local’, ‘free range’, ‘Non-GMO’
Local 54% 31% 28% 39% 43% 26% 36%
and ‘Natural’ food claim, while
those spending 50-74% of their Canada Organic certified 44% 13% 24% 42% 42% 49% 23%
budget on organic items are more Free range/grass fed 40% 15% 16% 28% 30% 22% 15%
trusting of Canada Organic Non-GMO 35% 10% 15% 23% 26% 25% 12%
certified products. Natural/All natural 34% 15% 15% 24% 33% 21% 23%
USDA Organic certified 30% 6% 11% 25% 20% 22% 10%

• 11. On a scale of 1-9, where 1 is not at all trustworthy, and 9 is completely trustworthy, please rate how trustworthy the following food claims are to you:
• Base: All Respondents (unwtd) (n=650) 17
Retail Sales Data
Market Size
Organic food & non-food Organic food, beverage &
market: alcohol market:

$5.4B $4.2B
Estimated sales value
Estimated sales value

8.4%
Estimated CAGR 2012-2017

2.6%
Estimated organic share of total
food and beverage market.2

Source: COTA Canadian Organic Market Report based on data from the Nielsen
Company year ending August 2017,.
Mainstream boom

$2.2B 53%
Estimated organic food
& beverage sales
= Organic market
sales through
through mainstream mainstream
channels channels

1. COTA Consumer Ipsos Poll, June 2017.
2. COTA Canadian Organic Market Report based on data from the Nielsen Company year ending August 2017, forthcoming.
Fruits & vegetables still rule
96% $586M 11.8%
Organic shoppers Estimated sales through Estimated CAGR
buying organic fruits & mainstream channels2 2012-20172
vegetables1

1. COTA Consumer Ipsos Poll, June 2017.
2. COTA Canadian Organic Market Report based on data from the Nielsen Company year ending August 2017, forthcoming.
Meat & Poultry

80% 31%
Of organic shoppers Estimated CAGR 2012-
now buy organic meat 20172
and poultry1

1. COTA Consumer Ipsos Poll, June 2017.
2. COTA 2017 Canadian Organic Market Report based on data from the Nielsen Company year ending August 2017.
The little ones 60%
Organic share sales of
total infant formula sales1

35%
Estimated CAGR for
infant formula 2012-
20171

1. COTA Canadian Organic Market Report based on data from the Nielsen Company year ending August 2017,
Organic Operators & Acreage
Canada’s organic farmers

Over 4,000 producers1
2.2% of farms nationally1

Organic farmers tend to be younger, more
educated and from non-farming
backgrounds.1,2

1. Sources: Canadian Census of Agriculture, 2016;
2. LaForge (2017) Alternative Agriculture and New Farmer Knowledge. PhD Dissertation
Estimated number
of certified and
transitional
7
producers (2015)
1K

Estimated certified 616
and transitional
413
acreage (2015) 616K 851 142 1,341
426K 173
91K 796 221K
893K 30K
156K

Source: COTA annual data collection from Certification bodies
Fruit and vegetable farms Livestock farms

Canada’s
organic
7.7% 2.2%farms
of all farms are organic
vegetable farms are organic1 6852
Field Crops Maple

1/3 organic lands2 +150K acres2
1. Canadian Census of Agriculture 2016
2. COTA annual data collection from Certification bodies
Trade
In the Global Arena
$637M
Tracked organic imports, 2016

Imports

Exports
$607M
Projection for tracked organic
exports, 2017

Source: Harmonized System Code data collected by Statistics Canada, 2017.
Do we have a reason to care about NAFTA?
YES!
Canadian organic imports US organic imports
8% 5%
8%

Mexico
10%
51% 49% Peru

What do we 69%
Italy

Canada

US Everyone else mean to each Everyone else

Canadian organic exports other? US organic exports

12%
16%
27%

49%

24%
72%

Canada Mexico Everyone else
India US Everyone else
Source: Harmonized System Code data collected by Statistics Canada, 2017.
New Canadian Organic Market Report

E-mail – jguerra@canada-organic.ca or visit our Shopify store www.canada-organic.myshopify.com
What can COTA do for you?
Lobby for the change we want to see in organic

Federal budget asks and programming

Regulatory affairs

Data and market analysis reports

Support domestic and cross-border business-to-business connections for market access
Thank you for listening!
tloftsgard@canada-organic.ca

@canadaorganic