The Soil Association this week revealed that the UK organics market suffered a 1.5 per cent sales decline in 2012.
However,the body backed the market to return to growth in 2013 as more consumers support organically sourced produce in the wake of the horsemeat scandal.
Sales of organic products rose by 8.4 per cent in February, in comparison to January, according to Kantar Worldpanel data.
Speakingat the launch of The Organic Market Report 2013 in London this week, Jim Twine, business development manager at the Soil Association, pleadedwith retailers to invest more in own-label lines. “Morrisons’ share of the organic market was up 3.5 per cent in 2012 off the back of a successful relaunch of its own-
label organic fresh produce, whilethe likes of Tesco, who have not invested, saw their market share fall by 6.9 per cent; this is no coincidence,” explained Twine.
In 2004, the major retailers accounted for 75.3 per cent of organic sales, a figure which fell to 70.7 per cent in 2012.
Twinesaid that the likes of Tesco are missing out by not embracing organics in store as the average spend of AB consumers, who purchase the most frequent amounts of organic produce in this country, is as much as 30 per cent higher than C2 and DE shoppers.
The report also warns that UK organic production could fall even further in 2013 due to high input costs and reduced support from major retailers and policy makers.
PeterMelchett, policy director at the Soil Association, said it’s wrong thatthe UK isn’t growing in line with the rest of Europe. European organic sales increased nine per cent in 2012.
He said: “Instead of backing areas which don’t exist such as GM, it would be nice if the government backed our industry, which clearly has massive growth potential.”
Retail outlook:
According to the report: “Among the four biggest organic retailers, both Tesco and Sainsbury’s are predicting a fall in sales, while Waitrose and Ocado are predicting growth. It is not good to see the extent to which some retailers are reducing their offering.”
This week Tesco revealed it would be suspending its organic box service Soil & Seed despite describing the service as producing “a well-received 12-week trial”. Industry insiders do not believe the service will be renewed.
