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Organic Food Brands




organic food brands

Organic Food Industry is moving from niche to the mainstream

Until the recession hit, demand for organic food was strong. Organic food is moving from being a niche market to the mainstream, with the major supermarkets stocking more of their shelves with organic products (including their own store brands). Consumers are demanding food which is considered more ethical, environmentally friendly and healthier. IBISWorld estimates industry revenue increased at double digit rates over much of the past five years to a forecast £1.9 billion by 2010-11 (based on data from sources such as the Soil Association and IBISWorld estimates). However, the industry then declined in 2008-09 and 2009-10 as the recession took hold of the UK economy and consumers traded down to lower priced food products. Despite this overall growth, organic food sales remain relatively low compared with other more conventional food products. For example, IBISWorld estimates that Organic food sales will account for 1.3% of non-specialised food retailers’ (such as supermarkets and convenience stores, included in SIC 47.11) total revenue in 2010-11.

Industry revenue includes retail sales of organic food by supermarkets, specialty food stores, farmers’ markets and box schemes. While organic farming income and food manufacturers are excluded from Key Statistics, they are nonetheless discussed in the report given their importance in the supply chain. IBISWorld estimates, based on data from the Annual Business Inquiry, there will be approximately 75,797 companies selling organic food in the UK (including supermarkets, convenience stores, specialty food retailers, stalls and markets and box schemes). However, many of these retail outlets sell a variety of food products, including organic food. Supermarkets are the major retail channel for the industry. IBISWorld estimates that employment attributable to the retail sales of organic food will be approximately 20,500 in 2010-11, up 0.7% on average from 2005-06. IBISWorld estimates that wages attributable to organic food sales will be £190.3 million in 2010-11, up 1.1% on average over the five years.

The term organic refers to a method of farming and food production. The use of fertilisers and pesticides is restricted, crop rotation is used and animal welfare is taken into account. Antibiotics are not used, except in cases where animals are sick. Processed Food must comprise over 95% organic raw materials. Overall, Organic Food Products have become more popular over the past decade. They are moving from being a niche market to being more mainstream. Consumers are buying organic products for a variety of reasons, including taste, animal welfare, health and environmental concerns. Reflecting this trend, supermarkets are stocking more organic products.

 

About the Author

IBISWorld is recognized as the UK’s most trusted independent source of industry and market research reports, offering a comprehensive database of unique information and analysis on every UK industry.Visit IBISWorld market research

 

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