Why shoppers are turning towards costly organic food and drink

14-Oct-2024 - Last updated on 14-Oct-2024 at 10:55 GMT

Organic sales on the rise, but what strategy will grow them further?

More consumers are buying pricier organic food and drink, despite continuing cost-of-living pressures, with sales expected to rocket as governments push to make organic farming central to future sustainability strategies.

Organic food and drink sales were outperforming their non-organic equivalents for growth as the sector continues to recover from the cost-of-living crisis, delegates at the virtual Organic Trade Conference were told.

Volume and value sales were up, with the latter rising in the UK by 6.4% compared to 5.4% for non-organic.

“There have been some tough times, and challenges remain, but it is great to see the sector bouncing back rom the impacts of the cost-of-living crisis as shoppers seek the wellness and sustainability credentials that organic provides,” said Soil Association certification direction Alex Cullen.

Sales were rising as consumers were again putting their money where their mouths were, with over two-thirds (69%) of shoppers looking for sustainable or eco logos when shopping.

Why are consumers buying more organic?

An uptick in consumer desire in for organic products echoes the findings of a recent FoodNavigator investigation, which showed organic logos and certifications were of high value to consumers.

This contrasts with the concern of the cost of living, with 29% citing it as a worry now compared to 57% two years ago, NielsenIQ data showed. Personal health and wellness concerns had also risen in the same period from 11% to 28%.

“Shoppers are increasingly aware of the need to balance the future demands of a growing population, as well as their own health, with a change to their diets,” said NielsenIQ head of retailer and business insight Mike Watkins.

“But there is also opportunity to inform and educate about the need for changes in how we produce food and in the supporting the supply chain as part of helping UK food security. Organic is part of this journey,” he continued.

EU’s organic strategy better than UK’s

The UK, however, had to up its pace if its food and drink sector was to compete with the European Union’s organic strategy, warned Michaël Wilde, founder and bio ambassador for Netherland’s-based The Organic Embassy.

EU countries had been given targets to bolster organic land as a key sustainable solution, strengthened in the recently released European Commission Vision for Agriculture and Food report, which signalled a need for major sector investment.

“Our experience [in the Netherlands] has been incredibly positive driven by a shared understanding for the need to address the environmental and health crisis across government and supply chains,” said Wilde.

“Clearly there are still many challenges to overcome, not least the increasing polarisation of the intensive food sector and combined organic and regenerative sectors, but I am optimistic about the future and the lead we are taking in Europe.”

The UK, however, was developing a strong cohort of expert organic farmers, he continued. The country had also spearheaded significant innovation and was deeply committed to the principles of organic farming when it was being practiced.