1bn organic sales by 2003

24 May 2001



1bn organic sales ‘by 2003’

By FWi staff

THE market for organic food will grow to 1 billion, approximately 1% of the total grocery market, within the next two years, according to a new report.

Price remains the main obstacle to expanding the market, said consumers and industry responding to a survey by the Institute of Grocery Distribution

But 79% of those questioned believe that the price gap between conventional produce and organic food will close dramatically.

This will open up the organic market to a wider group of consumers beyond the higher income groups who currently buy most organic food, claims the report.

Availability problems had been tackled by retailers widening and deepening organic ranges, says The report, entitled Organic Food: Niche or Mainstream.

IGD senior business analyst Peter Whitehead said: “The main constraints that organic businesses identified as holding back the market, such as price and availability, are being addressed.

“As a result, the organic market seems set for a further phase of rapid expansion driven by falling prices, increased range and availability and growing concerns by some consumers about conventional produce.”

Amost 75% of organic food was sold in supermarkets, noted the survey, although new natural food stores were springing up in London.

Earlier IGD consumer research indicated that 36% of consumers thought organic food was healthier to eat and 25% believed it tasted better.

Some 36% thought it was safer to eat while 34% thought that the absence of pesticides benefited the environment.

• British farmers missing ou ton organic boom, FWi, 05 July, 1999
• Organics to reach 553m in 2001, FWi, 25 November, 1997
  

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