Organic market on the move!
26 April 2013
Sales of organic products through the main supermarkets have risen significantly during the past two months and are performing better than the previous 10 months. According to Kantar Worldpanel data, the 12 week year-on-year trend for organic food to 17 March is -0.6% which is the smallest decline we have seen during the last two years.
The ongoing 'horsemeat scandal' has undoubtedly had an impact on shopping habits with many shoppers paying more attention to the smaller print on labels while also being more proactive in their food choices. The Soil Association believes that consumers are choosing organic as a 'guarantee of integrity' as reported in an article in the Grocer.
Interestingly it is organic grocery and dry goods which are showing the greatest improvement in sales pulling back to a flat year on year performance while baby food, which was a star performer during 2012, has fallen back as the total baby food market has contracted slightly.
Kantar data also confirms that Sainsbury’s has now the largest share of the organic market at 25.8% share, having overtaken Tesco share for the first time since the market started declining.
In light of the recent disappointing supermarket announcements about abandoning the specification of non-GM feed for animals, this provides a unique opportunity for the whole of the organic industry to raise the profile of the benefits of organic. Disgruntled consumers will want to purchase non-GM food and the organic label gives them the choice. We are hoping that all retailers and providers of organic products will seize this opportunity to amplify that organic is food that can be trusted without gm ingredients.
We are hopeful that sales will continue to rise during 2013 and that we will get the organic market back on track.