Bio-boom at BioFach

A potential for growth is seen by markets players for bio foods primarily in large stores. An expanding selection of goods was represented at the BioFach exhibition held in Nurnberg. 25 Hugarian companies attended the exhibition with the help of Agrármarketing Centrum. How much more expensive can Bio be compared to conventional food? The answer, according to participants of a forum held during the exhibition is 20 per cent on average. Bio-products seem to be a good way to increase food sales. Store chains with many highly educated and well informed customers can be the pioneers of progress. Social status and environment are also important factors influencing demand. Trust is a decisive factor of success. 56 per cent of the representatives of German retail businesses interviewed do not believe that all bio products actually meet “bio” criteria. Two thirds of the representatives of manufacturing companies said that not everything called bio is actually bio. The biggest consumer potential is seen in the target group with “post material” orientation. People in this group are no longer focusing on material things, the quality of life is determined by other factors for them. Consumers who belong to the traditional middle class only rarely purchase bio products. 45,000 registered visitors from 116 countries came to see the exhibition in four days, which is 8,000 more than last year. Regarding the number of visitors, Hungary is in the top 10. This year, 2,600 companies from 60 countries attended the exhibition, representing an increase of 500 over last year. One of the reasons of this spectacular growth is that BioFach is complemented by Vivaness, an exhibition of natural cosmetics and wellness products. Total sales of bio products are expected to double in the next five years in the USA, UK, Germany and Sweden. Total annual turnover in the Hungarian bio food market is estimated to be between HUF 15-20 billion by Ferenc Frühwald, an expert of the field. There is slow growth in the market, but supply still exceeds demand. Hungarian manufacturers like Biohungaricum Kft., export 70 per cent of their production. According to Biokontroll Hungária Kht. there are 1,500 producers and 400 processors of bio products in Hungary with production and trade primarily centred around Budapest.