How green is my wallet? Organic food growth slows
As recession drives consumers to cut costs, their commitment to
organic food has been tested with sales growth slowing — but so far,
sales are not falling. How green are our wallets?
Grown without the use of synthetic fertilisers and pesticides,
organic food has been booming, driven by claims it is healthier, tastes
better and its production does less damage to the environment than
conventional agriculture. The global market for organic food and
beverages was worth $22.75 billion in 2007, after more than doubling in
five years, according to market research firm Euromonitor International.
The United States accounted for about 45 percent of that total.
With economies in crisis, the trend is slowing in the United States,
Britain, France and Europe’s most important market for organic food,
Germany. So far, Britain is the market tipped for a fall as shrinking
incomes force the newly green to save money.
Typical growth rates of 20 to 30 percent for organic food sales in
the United States eased in the second half of 2008 as middle- and
upper-income families felt the strain of layoffs and declining
investment portfolios, said Tom Pirovano, director of industry insights
at market research firm The Nielsen Co. Sales in December were up 5.6
percent, year on year, against a 25.6 percent rise a year earlier.Even
though growth is slowing, Pirovano noted that most people who purchased
organic foods were very committed.
“I’m not convinced that we are going to see big declines in organics
any time soon,” he said. Nielsen data measures packaged foods with bar
codes at many retail outlets. Discount retailer Wal-Mart does not
participate in the market research.
Late on a Friday in London’s South Kensington, shoppers at the Whole
Foods store owned by the U.S.-based organic and natural foods
supermarket were sparse. REUTERS |