Global organic food sales have been increasing by over US$5bn a year, according to Organic Monitor, exceeding US$50bn in 2008. However, the research group warns that single digit-growth could occur for the first time this year due to the global economic slowdown.
“Organic food sales are being affected by the reduction in consumer spending power and declining investment levels,” it said. “Consumers are curbing expenditure on food products because of rising price sensitivity, whereas investment from new entrants and financers has dwindled. The UK market has been the most adversely affected, with just 2 per cent growth reported in 2008.”
Another factor affecting market growth is increasing consumer sophistication, according to Organic Monitor. “Consumers are demanding more from organic food products,” it says. “They are increasingly looking at ethical sourcing, traceability, the carbon footprint, sustainability and corporate social responsibility. Thus, the organic production method only partially meets rising consumer expectations.”
As a response, according to Organic Monitor, leading organic food companies are attempting to go “beyond organic”, adopting highly ethical, ecological and sustainable business practices.
