Britain Organic Food Sales Growth Remains Strong
Date: 17-Sep-07
Country: UK
Sales for the year to August 18 grew by 19 percent to around
1.48 billion pounds (US$2.99 billion), down from a 20 percent rise
in the prior year.
AC Nielsen's data comes from checkout scanners at Britain's
major supermarket chains as well as many smaller retailers.
Organic produce accounts for about two percent of food and
drink sales in Britain.
Business insight director Jonathan Banks said the two main
reasons consumers give for buying organic were beliefs that the
products were healthier and better for the environment.
"There is a huge increase in the level of concerns about
climate change and global warming," he told Reuters.
He noted that neither of these reasons was necessarily true
with the actual impact on the environment, for example, often
influenced by a huge range of factors such as economies of scale
and growing conditions in the country of origin.
Banks said, however, that a significant chunk of consumers
did not think deeply about individual cases and used organic as
"shorthand" for healthier or better for the environment.
"If people continue to market with integrity and don't
overclaim I think organic can continue to grow for some time,"
he said.
Britain's Soil Association, which certifies more than 70
percent or the organic produce sold in Britain, estimated
earlier this month that sales topped 2 billion pounds for the
first time in 2006.
The total includes retail outlets not covered by AC Nielsen.
The Soil Association estimates that around 75 percent of organic
produce is purchased from multiple retailers with organic box
and mail order schemes of growing importance.
Soil Association data showed a similar trend in calendar
2006 with a 22 percent rise in organic sales.
The group did not provide data for 2007 but warned that the
failure of domestic supplies failing to keep pace with demand
could constrain future growth.
