Retailers miss out on Fairtrade sales

The latest statistics from a survey conducted by Fairtrade fruit-juice supplier Fruit Passion have revealed that Fairtrade has emerged as the most popular category in the growing ethical consumer goods market but it is a long way from fulfilling its potential, because major supermarkets are overlooking its appeal.

The Fruit Passion study found shoppers were nearly twice as supportive of Fairtrade goods as they were of organic produce.

Consumers from across the UK were questioned for the report in which 41 per cent of respondents said Fairtrade was their top priority compared with 23 per cent for organics. But organic food sales amount to £1.2 billion a year while Fairtrade lags far behind, only just exceeding the £230 million mark. Industry forecasts suggest Fairtrade sales will reach around £550m in five years’ time but this is still less than half the present level of organic sales.

And while Fairtrade sales have been gathering momentum, having more than doubled in the past four years, the size of the potential market is further highlighted by the survey findings that one person in three would be happy for everything in their shopping basket to carry the Fairtrade label.

The report also revealed that cost was not the inhibiting factor of a potential Fairtrade boom. More than 65 per cent of people said they would expect to pay between 10 and 30 per cent extra on Fairtrade products but the average increase is generally much lower than this. For example, Fruit

Passionfruit juice retails at under five per cent more than non-Fairtrade juices.

Lack of choice was given as a key reason why shoppers do not buy more Fairtrade as well as lack of availability and insufficient information about the producers supported by the product. “A lack of Fairtrade fresh products with year-round availability has been a barrier to growth, but this is changing,” said Clive Marriott, commercial director at Fairtrade importer Agrofair. “However retailers could do more to make a special feature of seasonally available Fairtrade produce.”

Rob Spencer, marketing and business development director at Fruit Passion, said: “Retailers have a great opportunity to satisfy consumer demand and in doing so do a tremendous amount to support producers and growers in developing countries.”

The Fruit Passion findings are based on a survey of nearly 600 consumers conducted over a three week period in August 2006.

Topics