The State of Sustainable Markets 2018: Statistics and Emerging Trends

Voluntary sustainability standards (VSS) are experiencing significant growth across the world in response to consumer, buyer and producer demands, according to ‘The State of Sustainable Markets 2018: Statistics and Emerging Trends’ report.

The report outlines data on global production volumes and areas, as well as certified producers, for 14 major VSS. These standards, which provide consumers assurances that their purchases support sustainability, can enhance market connections and price premiums for producers, but potentially come with substantial compliance costs.

The State of Sustainable Markets 2018: Statistics and Emerging Trends is the third joint report by the Research Institute of Organic Agriculture (FiBL), the International Institute for Sustainable Development (IISD), and the International Trade Centre (ITC). The report is the most comprehensive global data source available for certified agricultural commodity markets. It presents data that helps small firms take advantage of trends to supply consumers with products that are environmentally sustainable and socially responsible.

The report shows that agricultural land on which certified commodities are grown continues to increase. For some products, such as coffee and cocoa, more than 20% of global cultivation is certified as sustainable.  Certified cotton is witnessing the highest growth rate, with the area under cultivation trebling between 2011 and 2016. Certified cocoa also almost trebled in area; while oil palm and tea-certified areas more than doubled during the same five-year span.

The report finds that in 2016, more than 57.8 million hectares of agricultural land across the world were organic-certified, including land that is in the process of becoming certified as such. This represents 1.2% of all agricultural land worldwide.

In terms of individual standards rather than crops, the State of Sustainable Markets finds that the Round Table on Responsible Soy (RTRS) experienced the greatest jump, with the certified area covered expanding more than seven-fold. The Better Cotton Initiative (BCI) area increased nearly five times, while that of Cotton made in Africa (CmiA) nearly quadrupled.


State of Sustainable Markets 2018 highlights

Cocoa: the largest growth in terms of certified area

Between 2015 and 2016, certified cocoa demonstrated the strongest growth with a 28% increase. However, over the same period, most other commodities experienced single-digit growth or even saw a decline in certified area.

Coffee: 26% of the world’s coffee is certified

In 2016, over a quarter of global coffee was certified by at least one of the following standards: 4C, Fairtrade International, Organic, Rainforest Alliance and UTZ.

This is a conservative estimate, as the figure could be as high as 45%, if the coffee is not certified by multiple initiatives.

Single-sector standards continue to dominate

Market uptake is largely driven by standards directly targeting mainstream adoption within a specific sector. In each of the sectors discussed, where single-commodity standards have been developed (coffee, cotton, forestry, oil palm, sugarcane and soy), they are by far the largest standards. The dominance of single-commodity standards is particularly remarkable given that they tend to be the newest standards on the market, with the exception of the forestry sector. 

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