UK Organic Food Sales Reach Record GBP2 Billion

Tue, 04 Sep 2007
 
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Sales of organic products are set to significantly increase by 50 per cent over the next five years as consumers are becoming more concerned with health and ethical issues.

A forthcoming report on the UK grocery market, carried out by international food and grocery expert IGD, predicts organic sales to reach £3 billion by 2012.

In addition, a report by the Soil Association shows annual UK sales of organic food and drink have already hit the £2 billion mark, with the UK now ranked as the third-largest market in Europe behind Germany and Italy .

British supermarkets saw an increase in organic retail sales by 21 per cent, with consumers in London, the South East, the South West and Wales found to be the biggest organic spenders.

According to the Soil Association, local supply schemes, vegetable box schemes and mail order projects grew their sales by 53 per cent to £146 million.

Gerardine Padbury, IGD senior business analyst, commented: "Encouraged by the consumer trends of ethical shopping, health and well-being, leading supermarkets and independent retailers are rapidly expanding their organic product ranges."

"Factors such as the opening of Whole Foods Market, government health campaigns and food scares all play their part in driving demand."

"We are seeing the emergence of the ‘foodie’ consumer; the growing group of people who look for value in their food over and above simple nourishment . They live to eat rather than eat to live."

Padbury added: "Organic shoppers tend to be younger and wealthier than average, providing a lucrative opportunity for suppliers and retailers ."

However, the Soil Association says that the demand for home-grown organic food is outstripping supply, with organic fruit and vegetables being affected the most.

The report states: "It is important to note that the rate of growth in the organic retail market is unlikely to be sustained in 2007 due to a severe shortage in the supply of UK organic products ."

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