Poor sales of organic fruit are driving a continued fall in the total organic market, despite the overall rate of decline slowing in recent months.
Figures released this week by the Soil Association show organic sales falling 5.9 per cent in 2010 to £1.73 billion. Fruit and vegetables, which represent almost a quarter of all organic sales, fell 6.3 per cent to £402m. Fruit saw the biggest drop of any organic category, with an 11 per cent fall, while vegetables fell by only two per cent.
The figures represent a gradual improvement for a category that suffered a double-digit fall during the recession, but suppliers will be concerned that fruit and veg is still declining faster than the market average.
Sales through the multiples fell 7.7 per cent last year to £1.25bn, but box schemes and mail order grew by one per cent.
The Soil Association declared itself “cautiously optimistic” with the result, with commercial director Jim Twine insisting there is more commitment this year from retailers to build the category through multibuys and other promotions rather than just price discounting, more innovation on the cards for 2011, and a survey of leading companies showing 69 per cent predicted growth this year.
Twine also revealed that Organic Fortnight will be extended this year and will be known as Organic September, a move he said was aimed at giving retailers more opportunity to tie in sales with their Back to School marketing.
Policy director Emma Hockridge added that there would be a particular focus on the issue of inputs on organic farms this year, as well as work on challenging the perception that organic food is just for posh people.
In fact, the charity pointed out, research showed 32.9 per cent of people buying organic were now in the C2DE social categories, with 31.7 per cent classed as C1 and only 35.4 per cent in the AB sector.
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