Soil Association Report Shows ‘Significant Areas of Growth’ in Organic Sales

A new report by the Soil Association has highlighted key areas of growth in online retail, independent outlets and a shift towards younger consumers during 2012. The Organic Market Report shows that overall, the market has dipped by 1.5% as the UK continues through its most challenging economic downturn for many decades. However, the report predicts a positive future for the UK organic market.

The Soil Association said the horsemeat scandal also had a positive impact, backed up by recent figures from Kantar Worldpanel. In February 2013, total supermarket organic sales increased to their highest level in 9 months indicating consumers choosing to buy organic as a guarantee of integrity. February sales increased 8.4% versus January. Some Independent organic meat suppliers have also reported an increase in sales of up to 20% over the past month.

The report also found that organic shoppers are increasingly choosing the convenience and variety offered by online shopping and specialist stores versus the limited ranges and stock at many supermarkets.

Speaking about the report, Jim Twine, Soil Association business development director said; "In the worst economic downturn in living memory, it's not surprising to find subdued sales of a wide variety of goods and services- and the UK organic sector is not immune to these. Despite a decrease in sales overall, there are areas of significant growth highlighted in the 2013 Organic Market Report. The Soil Association remains confident the UK organic market will return to growth – it is more difficult to know exactly when.

"There is a real risk that if retailers do not work more closely with UK organic farmers and growers, the market could become restricted due to supply shortages. The report shows that when retailers have invested in their organic range their share of the market grows – and the converted organic consumer remains very loyal.

"Governments in England, Wales and NI could look to Scotland's lead, with action plans to support organic farmers and growers. The UK government should mirror European governments and really get behind organic producers in the UK to help support existing organic farmers and grow the market in future. In short – we need a level playing field."

Source: FreshPlaza - Soil Association Report Shows 'Significant Areas of Growth' in Organic Sales