Global Organic Market In Decline

Organic Market In Decline; Companies Add Broader Sustainability Strategies to Retain and Attract Consumers

Press Release -- LONDON -- June 2, 2009 -- Global organic food sales have been increasing by over US $5 billion a year, exceeding US $50 billion in 2008. However, single digit-growth could occur for the first time this year because the global economic slowdown is impacting organic product sales.

Organic food sales are being affected by the reduction in consumer spending power. Consumers are curbing expenditure on food products because of rising price sensitivity. Organic Monitor (www.organicmonitor.com) finds another factor affecting market growth is increasing consumer sophistication. Consumers are demanding more from organic food products; they are increasingly looking at ethical sourcing, traceability, the carbon footprint, sustainability and corporate social responsibility. Thus, the organic production method only partially meets rising consumer expectations.

Recognising the change in consumer behaviour, leading organic food companies are adopting ‘Organic Plus’ strategies. Such companies are going beyond organic and adopting highly ethical, ecological and sustainable business practices. Increasingly, these companies are marketing their organic products on these values.