The concepts are formulated to meet EU-Organic certification criteria and include three ready-to-market gummies and one softgel, targeting various health areas: A women’s health gummy and softgel for support during PMS and menopause with evening primrose oil; a metabolic health gummy with apple cider vinegar; and a heart health gummy with flaxseed oil to support normal blood cholesterol levels.
Growing trend
Organic is a trend that is gaining more traction and is expected to continue on an upward trajectory, Maria Pavlidou, head of brand at Sirio Europe told the audience of an organic supplements webinar hosted by FMCG Gurus on April 30.
"Over the last 12 months we have had requests for organic formulations coming from customers in Germany, France and also Spain," she said. "But what typically happens with trends is they start in one country and then move across regions, so we forecast that we’ll see the organic trend moving into other markets in the near future."
She explained that the decision to create an organic certified offering is both to appeal to the growing consumer interest and to stand out in a crowded market. This also contributed to the decision to use soft gels and gummy formats, she added, as organic soft gels and gummies are a new category in the EU.
However, she noted this new launch is not designed to cater to all consumers, instead fitting into a growing premium niche.
"It's important when launching a new product concept in the market to be very clear with consumer segmentation," she said. "Not every concept is suitable for every kind of consumer, and I don't think that this would ever be your typical super mass market product.
"It's for the type of consumer who is perhaps more health aware than average and is willing to pay just a little bit higher for the product that fits their concerns."
Mike Hughes, head of research and insight at FMCG Gurus, informed attendees that while consumers can be conscious about price, good value holds influence, with 31% of consumers seeking natural claims—and 35% of those specifically seeking organic claims.
"Ultimately, if the product truly aligns with the consumer's attributes, it's something that will increase their willingness to pay a premium," he said. "We’ve certainly seen over the last 12 months, even at times of reduced financial confidence, there have been products that have had a premium price and done incredibly well."
Certified organic
Organic supplements typically cost significantly more than non-organic counterparts for several reasons: Production cost is higher, untypical transportation and processing, increased distribution costs due to smaller volumes at which organic ingredients are produced, and considerations for worker welfare and environmental preservation.
Organic is an official certification that must be authorized by a control agency or body (the EU Commission in the European Union or the Soil Association in the UK), meaning organic producers must fulfill strict conditions on how they produce, process, transport and store.
The aim of organic is to produce substances using natural processes, meaning less environmental impact as it encourages responsible use of energy and natural resources, maintenance of biodiversity, preservation of regional ecological balances, enhancement of soil fertility and maintenance of water quality.
Certification exists to "satisfy consumer demand for trustworthy organic products whilst providing a fair marketplace for producers, distributors and marketers", according to the EU Commission. The regulation enforces that organic claims can only be used on products when they contain at least 95% organic ingredients.