Syngenta UK
Farminguk
31 August 2016 | Online since 2003
Scrutton Bland


14 March 2014 04:59:16 |News,Organic,Produce

Organic sales see growth for first time in four years


The Soil Association’s annual Organic Market Report today reveals that the organic sector has seen growth of 2.8% in 2013: the first time the organic market has seen annual growth since 2008.
Overall organic sales are growing slightly ahead of the overall grocery sales for 2013, which finished the year at around +2.1%.
The 2014 Organic Market Report, published today (13 March), shows that the organic market is now worth £1.79billion. Those brands that carry the Soil Association logo have had an even stronger 2013, with growth of more than 5%.
And it seems this trend is set to continue in 2014, with organic sales for the first four weeks of the year seeing growth of +2.5% - way outperforming overall grocery sales, which were down -3.2%.
The organic textiles sector has had a particularly strong 2013, with growth of 10%. This comes after GOTS (the Global Organic Textile Standard) released revised standards for organic textiles, which now include personal care products and a ban on the use of angora wool and virgin polyester.
Emma Reinhold, Soil Association Certification trade relations manager commented: “It’s really positive news to see such positive growth in organic textiles and serves to further highlight the importance of maintaining organic integrity within the fashion and textiles market, through the new updated GOTS standards. By introducing bans on the use of angora wool and virgin polyester, as well as tightening up social criteria and introducing specific measures for areas including personal care and mattresses, brands can reassure their customers that they are adhering to the very highest standard for organic fibres.”
Independent retailers have led the way with growth of almost 7% (6.9%) to almost £10million per week, indicating that more consumers are choosing to shop in smaller stores where they know they will find a wider choice of organic products. Online sales of organic continue to grow strongly with Ocado seeing an increase in sales of 10.4%. Supermarkets have seen some growth in the past year, with overall sales up 1.2%. However, Sainsbury’s – the country’s biggest organic retailer with 29% market share – saw a 7% increase in sales of its own-label organic products, closely followed by Waitrose who saw its organic sales increase by 6.5% – indicating other supermarkets are yet to capitalise on increasing consumer demand for organic.
Household names, such as Yeo Valley Organic, Green & Blacks and Rachel’s Organic are the most popular organic brands in supermarkets. Also seeing growth throughout 2013 are mail-order, home-delivery and veg box schemes – up 11% on last year, with leading brands Abel & Cole and Riverford seeing a combined increase in sales of 17.9%.
The organic food market appears to be recovering across many different sectors, with meat, fish and poultry (+2.2%), vegetables (+3.4%) and dairy (+4.4%) all seeing positive growth throughout the year. This positive outlook is also reflected in consumer attitudes to organic and bodes well for the next 12 months, with 45% of organic consumers intending to buy more organic fruit and veg in the year ahead and 22% intending to buy more organic dairy in 2014.
Organic baby food continues to be a popular choice, with more than 50% of spending on baby food being organic.
Four out of five households now buy organic produce, with shoppers under 34 stating they are willing to spend the most on organic products.
The main reasons for choosing organic were it contains fewer chemicals and pesticides (37%), it’s natural and unprocessed (34%) and it’s healthier for me and my family (33%) – indicating a slight change in priorities for consumers from 2013, where it’s healthier for me and my family was the main reason for consumers choosing organic.
Speaking about the report, Rob Sexton, CEO of Soil Association Certification said; “To see the organic market showing such strong signs of growth, particularly when grocery sales as a whole are slowing, shows just how much potential there is in the organic sector. Both the growth in the organic market and the accelerating growth of products carrying the Soil Association logo further highlight the growing public demand for organic and food logos that they can trust. The message to supermarkets and other retailers and organic businesses is clear: if you make organic goods available and promote them well, consumers will respond by continuing to purchase the products they have confidence in.
“In addition research has shown that organic shoppers expect to buy more organic products this year than last so we have reason to be positive about the outlook for organic in 2014 and beyond. Now, the priority needs to be ensuring a greater choice of organic produce on shelves.”
Despite the continued demand from UK consumers, figures from Defra report that producer and livestock numbers and the UK’s organic land area decreased in the year to December 2012. The numbers of organic producers and processors also fell by 6.3% to 6,487. Currently around 3.5% (606,000 hectares) of the agricultural land area in the UK is organic.
Rob Sexton continued, “2013 has seen a decline in the amount of agricultural land in the UK that is organic and we know that many farmers are concerned about the profitability of organic.
"We have strong evidence to show that organic farming systems are at least as profitable as non-organic and we know that demand for organic is increasing amongst consumers. A serious injection of producer confidence is needed, in the shape of increased commitment from retailers and policy makers to help support existing organic farmers and grow the market in future, ensuring organic supply can meet increasing consumer demand.”

Download

0 Comment

loginuserlogo
Name

Please enter your name


Email

Please enter your email

Please enter valid email


Comment

Please enter your comment


Post Comment

Your comment has been submitted successfully. Please wait for admin approval.


Comments

No comments posted yet. Be the first to post a comment


New Zealand | 31 August 2016
Agribusiness: Managing risk key to dairy farming future

Few industries generate as much discussion or concern in New Zealand as dairy farming. Currently, there is much discussion about the high levels of dairy debt. Those with long memories will know th...


USA | 31 August 2016
Farmworker overtime bill is another factor in agricultural evolution

Everyone knows about the California Gold Rush – the massive migration of fortune seekers to the hills of the former Spanish colony in the 1840s and 1850s. During the same period, however, there was...


Australia | 31 August 2016
Cattle exporter misses prospectus targets

Live cattle exporter Wellard Group has missed its prospectus forecasts on revenue, profit and margins, booking a $23 million annual loss instead of the forecast $9 million net profit. Stripping out...


USA | 31 August 2016
The future of agriculture could rest with self driving tractors

With all the talk of autonomous cars from Tesla’s master plan to take on Uber to the legacy automotive players like Ford and Audi pursuing the self-driving agenda, there’s little talk on self-driving ...


New Zealand | 31 August 2016
Stolen herd of dairy cows would cost at least $1m

The theft of 500 dairy cows worth $1 million is no joke and if it had been a bank robbed of this amount there would be a big fuss, says Federated Farmers. Dairy chairman Andrew Hoggard said the the...



Trending Now

Viewed
Discussed


Top stories you may have missed
FarmingUK
FarmingUK Logo

FarmingUK

A new survey has revealed that the vast majority of British consumers belie...


FarmingUK
FarmingUK Logo

FarmingUK

The British public are overwhelmingly in favour of keeping or strengthening...


FarmingUK
FarmingUK Logo

FarmingUK

The sustained recovery of pig prices since the spring has come at a time wh...


FarmingUK
FarmingUK Logo

FarmingUK

A World Trade Organisation (WTO) panel has declared the Russian import ban ...


FarmingUK
FarmingUK Logo

FarmingUK

A new study has linked oilseed rape crops grown from neonicotinoid-treated ...


FarmingUK
FarmingUK Logo

FarmingUK

Philip Hammond is to guarantee billions of pounds of UK government investme...


FarmingUK
FarmingUK Logo

FarmingUK

Access to the foreign labour market is 'critical', according the chief exec...


FarmingUK
FarmingUK Logo

FarmingUK

The Tenant Farmers Association has said the National Trust's vision for a p...


FarmingUK
FarmingUK Logo

FarmingUK

Ulster farmers will 'not lie down and wave the white flag' when Brexit nego...


FarmingUK
FarmingUK Logo

FarmingUK

The cost of rural crime to the UK economy costs £42.5 million a year, accor...


closeicon
Username
Password