Dairy sector leads recovery in organic food market

The UK organic food and drink market has rebounded, achieving growth in both sales volume and value in the past year.

Sales of organic food and drink rose by 4.2% to total £3.9bn in 2025, marking the fourteenth consecutive year of market growth.

Dairy, which accounts for a 27% share of the UK organic market, has been one of the biggest drivers of growth with volumes increasing by 5.3% on year-earlier levels.

See also: Organic sector welcomes sustained support through SFI 2026

Fresh produce, which accounts for roughly one-third of the organic sales by volume, increased by 2.3% on the year.

Meat, fish and poultry volumes increased by 2.9%, however only account for 2.6% of the total organic marketplace.

Farmer confidence

A survey of organic farmers found that 45% had reported sales growth, while 40% said sales were stable.

Organic farmers were also generally optimistic for the year ahead, despite challenging growing conditions last year.

Soil Association farming adviser and organic farmer Adrian Steele said: “The continued growth of the organic market reflects the strong consumer demand for nature-friendly food.

“With high demand for organic products that are predominantly produced in the UK, we can also be encouraged that shoppers looking for organic’s environmental and welfare benefits also seem to be seeking to back British farmers.

“Supermarkets have been taking note and have reacted with rebrands and expansions to their organic ranges, along with more price promotions and loyalty discounts.”

Stagnant production 

However, the Soil Association describes UK organic production as “stagnant”, despite the increase in retail sales, with organic farming only accounting for 3% of UK farmland in 2024, according to government figures.

Organic land conversion in England increased by 7% in 2024, but growth slowed sharply last year when the Sustainable Farming Incentive (SFI) scheme suddenly closed.

The Soil Association says this represented the first break in organic conversion support in 30 years.

Sophie Gregory, Somerset organic dairy farmer and chairman of the UK Organic Dairy Roundtable, said: “The opportunities for organic dairy are huge, especially around animal health, environmental delivery and meeting the growing demand for natural food.

“But we also know the challenges have never been greater, from volatility to processing bottlenecks and the need for long-term confidence.”

Global perspective

The global market continues to grow, with global organic sales increasing by 5% to €145bn (£126bn) in 2025, according to the Research Institute of Organic Agriculture.

The European market is reportedly recovering with sales up by 4% year on year, despite cost-of-living pressures.

The US market has also seen growth with sales up 6.5% and is valued at $75bn (£56bn).

Demand is also growing further afield in other global markets, such as Saudi Arabia and the United Arab Emirates.