Recession Impacts The Sale Of Organic Products

By Michelle L Published 05/24/2010 | Environment

Recession, it’s the word we hear everywhere these days! But do you know what impacts recession had on the sale of organic products? Read on.

Because of recession, the sector of bread, meat and chilled meals seems to suffer the most, and people are expecting the demand for the organic products would increase in 2010.

Last year in the U.K, the sales of organic food, drink, etc, declined by 12.9% because producers were battling against the downturn in customer’s demands. It was the worst trading climate in the past 20 years.

Shoppers chose the economic option of buying non-organic fruits, vegetables, meat and bread because the prices of the organic ones were too high.

A 9.8% fall in sales of home delivery organic fruit and vegetable boxes was reported. It was a spiral downfall from there, the sale of organic stuffs in supermarkets slumped by 12.2% and 17.7% in farm shops and health food centers.

All in all, there was a huge slump in the organic sales, from a staggering £2.1bn in the year 2008 to a mere £1.84bn, as reported by the Organic Market Report 2010. This report came out at the Natural and Organic Products Europe show which took place in London.

The report produced one of the most updated and correct analysis of the organic market by conducting investigations of different sectors and taking the consumer’s poll. Every year the Soil Association produces such reports for the purpose of promoting organic food and farming in the UK.

After a lot of double-digit percentage growth over the years, a downward trend in this sector was noticed. The shoppers managed to curb their spending and the retailers manage to restrict their organic ranges and shelf space in times of economic downturn.

Even the top trio of organic food – fruit and vegetables, dairy and fresh meat – had witnessed a fall of 14.8%, 6.5% and 22.7% respectively in supermarket sales. However, dairy still manages to maintain its place in the most popular food category, and it accounted for 33% of all the sales.

In the times of downward trend in organic stuff, organic milk stood out by growing by 1%, partially due to it being launched as “healthy 1% fat milk” and 2009 was the best record of sales in the history of organic milk sales. Even organic baby food had a growth of 20.8% in its sales, hence overcoming the £100m mark.

Organic bread on the other hand plummeted by a huge 39.8% and chilled meals fell by 21.4% in terms of sales, making them sufferers in one of the biggest downturns in sales.