Organic Market Under Pressure From Local Food

UK - According to research carried out by the market intelligence organisation, Mintel, as many as half (48%) of the UK’s organic shoppers will reduce or even give up buying organic food in the next year as a direct result of the current economic climate.

8 December 2008

1 minute read

Europe

The report stated that UK consumers are questioning the value of organic produce and the added benefits f rom paying t h e premium price. As well as the financial issues, the research also identified increasing competition from other ethical choices including animal welfare, fair trade and locally sourced foods as adding to the pressure.

Mintel say that the value of the organic food and drink market has increased by an average of 16 per cent per year since 2003, but this growth rate is forecast to fall to between seven per cent and eight per cent in 2008.

The report identified that only 21 per cent of shoppers buy organic food, compared with 33 per cent looking for locally sourced product and 26 per cent seeking out fair trade products. As many as 42 per cent of adults would like more retailers or manufacturers to source their products from local suppliers, while 28 per cent state that they are happy to pay more for food if it means supporting local farmers.

Local produce has become the number one ethical concern as British people stand by their local economies Mintel observed. The market for locally sourced produce has been estimated at £4.8 billion, approximately three times the worth of the organic market.