Organic food and drink sales in the UK nudged the £2 billion (US$4 billion) mark for the first time in 2006, with a sustained market growth rate of 22 per cent throughout the year.
Launched to coincide with the start of the UK’s Organic Fortnight 2007, the Soil Association’s definitive annual Organic Market Report shows continued strong growth and dynamic public support for organic food, drink, textiles and health and beauty products.
Retail sales of organic products through organic delivery and mail order schemes and other direct routes increased from £95 million in 2005 to £146 million in 2006 - a staggering 53 per cent growth, more than double that experienced by the major supermarkets.
Organic textiles and the booming organic health and beauty sector are experiencing particularly strong growth. 2006 saw a 30 per cent increase in the number of health and beauty products licensed with the Soil Association. At current growth rates, the UK market for organic cotton products is estimated to be worth £107 million by 2008.
The report includes consumer research by Mintel which shows that more than half of those surveyed had purchased organic fruit and vegetables within the previous 12 months; one in four consumers had bought organic meat or dairy products; and one in six had purchased packaged organic goods.
Other key figures from the report reveal:
* Sales of free-range and organic outstripping eggs from caged birds for the first time. Consumer concerns over animal welfare appear to be driving changes in the poultry sector.
* An average of £37 million (US$74 million) is spent each week on organic produce in the UK with consumers living in London, the Southeast, the Southwest and Wales most likely to buy organic food.
* Households with children under the age of 15 tend to buy a wider range of organic foods than those with no children.
* Organic farmers are three times as likely to market their products locally or directly as non-organic farmers in the UK