Sales of organic products fell again in 2010, by almost six per cent, according to figures released by the Organic Association.
The
Soil Association’s Organic Market Report 2011, released yesterday, shows the organic market was worth £1.73 billion last year, a drop of nearly six per cent. The
sale of organic goods fell for the first time in 2009, when they plummeted nearly 13 per cent. The smaller decline that took place last year is making the market cautiously optimistic of recovery.
Potential recovery
The decline was sharper at the beginning of 2010 and slowed down as the year progressed. Additionally, several products actually saw an increase in consumption, most significantly beef (18 per cent increase), baby food (10.3 per cent increase) and textiles (7.8 per cent increase).
The market is expected to level off, and some retailers, including Waitrose and Marks & Spencer are predicting small increases in
sales next year.
While supermarkets saw a loss in organic purchases, box schemes and mail-orders increased by one per cent, up to £155.8 million.
Market demographics
People spent £33 million each week last year on organic goods. About 86 per cent of UK residents purchased organic products; this includes people from all socioeconomic backgrounds. Low-income families accounted for nearly a third of all purchases.
However, the organic market is still dominated by a smaller portion of the population.
Only eight per cent of the population accounts for 54 per cent of all spending.
"There is powerful evidence that consumers who care about the diverse benefits of organic will stay loyal, even during these tough economic times," said Roger Mortlock, Soil Association deputy director. "Given the current uncertainties in the UK and global economy, it would be rash to make any predictions for the future organic market. But the instability caused by climate change, population growth and resource depletion mean that business as usual in
food and farming is not an option."
Organic farming
While stores were selling fewer organic goods, the number of farms producing organic goods fell by 4.2 per cent, a loss of 329 producers.
After a decrease of organic land by 0.6 per cent, 4.2 per cent of the UK’s farmland is organic.
"Organic farmers are the pioneers of sustainable farming and have valuable lessons to pass on to the rest of the sector," said Environment Secretary Caroline Spelman.
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