Italy-Organic food.

ITALY-ORGANIC FOOD DOWNTURN.

Italians cut down on buying organic food and drinks in 2008 as economic downturn trimmed appetites for healthier but pricier products with consumption growth slowing by nearly 50 percent, a survey showed on Monday.

Purchases of packaged organic foods with bar codes rose by 5.4 percent in value in 2008, down from a 10.2 percent growth in 2007, according to the survey of Italian families conducted by agricultural think-tank ISMEA and market research firm Nielsen.

"No doubt, the increase was weaker last year (than in 2007) because of the impact of the crisis which was particularly strong at the end of 2008," said Enrico De Ruvo, ISMEA’s analyst of organic and special origin denomination foods.

"But organic food sector still fared better than the overall food sector," De Ruvo said, pointing at a 4.4 percent increase in total food purchases in value in Italy last year.

The global market for organic food and beverages had been booming in the past few years, but growth rates have slowed in recent months in major markets, such as the United States and Germany, as economic downturn deepened.

Organic products market in Italy is estimated at around 2 billion euros (1..7 billion pounds), or about 1.5 percent of total food and beverages market..

Organic fruit and vegetables were the favourites among Italians last year with purchases rising nearly 20 percent to account to 19.5 percent of all organic product purchases. Consumption of breakfast products dropped nearly 14 percent.

Organic infant food purchases rose 16 percent in child-loving Italy last year, while organic bread, pasta, rice and eggs were snapped at an increased pace of 14 percent.

The survey did not give a forecast for 2009 consumption.