Organic sector expected to exceed £2bn despite 'Brexit uncertainty'

9th Aug 2016 08:36 AM

The Soil Association expects the organic market to exceed £2bn with a boost from its Organic September campaign reports FG Insight.  Growth of organic sales through supermarkets in the 52 weeks to June 18 increased over five per cent (Nielsen Data).
Growth continued through the first half of 2016 and is now 5.2 per cent compared to 3.2 per cent at the end of 2015 - against a decline of 0.9 per cent in non-organic sales for same period.
Despite an uncertain market following Brexit the Soil Association is positive about the future of organic and expect this year’s Organic September to have an even bigger impact than before.  Clare McDermott from the Soil Association said “market growth is already strong and there’s a clear demand for organic, environmentally friendly and sustainable purchasing with many young professionals”.
“The UK will still be required to comply with EU organic standards as minimum to maintain the flow of organic products to and from the EU.”
Organic meat is the star performer, with beef sales increasing significantly since Newcastle University published research into nutrition in organic meat and milk in February. Other produce remains buoyant and sales of canned and packaged goods are strong which driven in part by cereals and tea.  Organic customers continue to seek out products away from the main supermarkets and that’s great news for independents as shopping in the ‘indy’ sector is still rising - up 7.5 per cent. Online and box schemes sales rose by 9.1 per cent.  Also the Soil Association reported increased interest in conversion to organic farming in the last year.
Sainsburys, Tesco, Waitrose and Ocado plan activities including on-pack promotion using Organic September stickers, range promotions, magazine features and sampling. Big produce businesses are using the marketing materials, as are independent retailers and farmers selling direct to customers. You can get yours here.
Mark Haynes, managing director at G’s Fresh said: “There’s a growing demand for organic at the moment. Organic September is a great way to focus customers’ attention on organic and link products right through the supply chain, from point of sale to producer.”
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