Dire Economy Takes Negligible Toll on Organic Food

Julie Mitchell

organic produce The worldwide recession has driven consumers to tighten their belts in every way possible, and while that means they might be spending less on groceries overall, the organic food industry is still growing, albeit at a slightly slower rate.  Many people have switched to organics, especially produce, to reap the benefits of food grown without synthetic fertilizers and pesticides, despite higher prices. 

The global market for organic food and beverages was worth $22.75 billion in 2007 after more than doubling in five years, according to the market research firm, Euromonitor International, and the U.S. accounted for approximately half of that total.  But growth rates of 20 to 30 percent for organic food in the U.S. slipped in the second half of 2008, as Americans felt the strain of the foundering economy.  Sales in December 2008 were up only 5.6 percent compared to 25.6 a year ago, according to market research firm, The Nielson Co. 

In the U.K, research analysis firm, Mintel, reports that while the organic food and drink market is currently worth £1.6 billion, attitudes towards organics are changing. Almost half of British shoppers say they will reduce or even give up buying organic food in 2009.  Richard Perks, Mintel's director of retail and financial research, said, "British consumers are clearly beginning to question the value of organics and the added benefits they get from paying the premium price.  Now, more than ever, retailers and suppliers need to clearly communicate the ethical, environmental, and personal benefits of buying organic."   

Still, although growth may be slowing, it hasn't stopped, and hardcore purchasers of organic food are unlikely to completely change their ways.  Ronnie Cummins, national director of the Organic Consumers Association said that while occasional buyers of organic product may be cutting back, regular buyers were slowing their purchases of processed food in favor of organic whole fruits, vegetables, and meats.  Mintel research showed that shoppers are also supporting their local economies and farmers by buying locally sourced produce.  As many as 28 percent of British adults will gladly pay more for food when it means supporting local farmers.

In the U.S., shoppers committed to buying organic are continuing the trend, perhaps simply cutting back here and there.  Owner Kamron B. of the Village Market, a San Francisco neighborhood shop featuring hand-selected produce from area farms, , says he hasn't seen much of a drop off in sales.  "I opened the market in 1992, and my customers have been buying organic food for years," he says.  "They're looking for the best-tasting, best-quality local fruit and vegetables, and they're not going to stop buying now."

Germany's organic food sales are also still growing but  down from 14 percent growth in 2007 to 10 percent in 2008.  The country suffered from a shortage of organic carrots in 2008 as major discount supermarket, ALDI, one of the largest grocery retailers in Europe, the U.S. and Australia, introduced them into its product line, buying up most available supplies.  German organic food industry association, BOLW (German Federation of the Organic Food Industry)'s chief executive, Alexander Gerber, believes that German consumers want healthy food produced in an environmentally friendly way and won't stop buying because of difficult times.  In France, too, the organic food sector is continuing to grow, just more slowly than in 2008.

Related Reading:
Can Extra Virgin Olive Oil Be Extra Green?
Growing Lush Landscapes and New Behavior

Image Credits:
blog.americanfeast.com
www.mofga.org

Add a comment
  • to get your picture next to your comment (not a member yet?).
  • (hint: logged in Celsias members don't have to fill in this)
  • Posted on Feb. 24, 2009. Listed in:

    See other articles written by Julie »


    Pledge to do these related actions

    Energize your Composter, 176°

    Composters and compost piles often become places of ill-repute, where food wastes rot instead of ...

    The 100-Mile Diet, 47°

    To help sustain our local communities, support local economies, support local farming and eating of ...

    Eat only wild and foraged food at least once a month., 26°

    Eat only wild and other uncultivated foods for as long as possible, preferably without using ...

    Follow these related projects

    Change the World for Fifteen Bucks

    NZ, Australia and the UK, United Kingdom

    Featured Companies & Orgs