UK's Organic Growth

The organic food and drink market in the UK is forecast to grow by around 75% between 2002 and 2007, according to a new report from Datamonitor. The UK is second in Europe in its spend on organic foods, but far behind Germany, with high prices remaining the strongest barrier to acceptance.

The report estimates UK spend of £1.6bn by 2007 - Germany's spend is already £2.1bn equivalent, in 2002. The UK organic market has been boosted by a loss of trust in the food industry, with growing consumer concern about the safety of foodstuffs, methods of production and the ingredients used.

The number of 'loyal' users of organic products in the UK is set to grow from 2.4m in 2002 to 11.4m in 2007. Organic meat is forecast to have the largest gains, from £152m in 2002 to £351m in 2007. Organic ready meals are forecast to grow at an annual compound growth rate of almost 17% over the same period. Most consumers of organic products are between the ages of 25 and 55, peaking between 36 and 45.

'Educating consumers on the benefits of organic and natural food and drinks is vital', says report author and Datamonitor consumer markets analyst Daniel Bone. 'Otherwise, marketers are going to find it increasingly difficult to justify the current price premiums in existence'. Datamonitor estimates that a price premium of 10-20% above conventional food counterparts would be more acceptable to occasional and non-users of organic products.

Consumer perception of improved taste and quality of such products varies considerably. The view that organic produce has better taste than conventional food and drinks is not widely proven in the eyes of consumers. A clearer understanding of the nutritional and health benefits would also increase their consumption of natural food and drinks, says Datamonitor.

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.

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