According to Organic Monitor, growth in the global organic food market is slowing because of the financial crisis. Demand has been affected by the reduction in consumer spending power and declining industry investment. The UK market has been the most adversely affected, with just 2% growth reported in 2008.
Some argue it is difficult to increase organic food sales in the current economic climate because of the price premium. Rising consumer expectations is another factor. Consumers are demanding more from organic food products; they are increasingly looking at ethical sourcing, traceability, the carbon footprint, sustainability and corporate social responsibility.
Certification agencies are responding to the growing sophistication of the organic food market by integrating aspects of sustainability into their standards. IMO and Ecocert have introduced fairtrade standards that complement organic production methods. The EcoSocial standard of the Biodynamic Institute in Brazil which covers biodiversity, is gaining popularity in Latin America. Others like Soil Association are looking at reducing the environmental impact of organic food products.
In conclusion, 2009 brings fresh challenges to the organic food industry. The global economic slowdown coupled with changing consumer behaviour is affecting organic food sales. Food companies and retailers need to re-align their organic product ranges to meet rising consumer expectations. With consumers increasingly looking at sustainability, companies are advised to follow the ‘bioneers’ and adopt organic plus strategies.
Case studies of companies who have successfully implemented such strategies will be given at the Sustainable Foods Summit. Companies & organisations participating at the summit include EOSTA, Canaan Fair Trade, Tradin (SunOpta), Nature & More, IMO, IBD, Soil Association, FLO, Earthoil, AgroFair and others.
Source: Press release Organic Monitor of May 29, 2009: Global Organic Market: Time for Organic Plus Strategies
More information
Links
- Sustainable Food Summit www.sustainablefoodssummit.com
- Organic Monitor www.organicmonitor.com
Organic World.Net
- Amarjit Sahota, the Director of Organic Monitor has contributed to the yearbook on organic agriculture worldwide with a chapter on the global market for organic foods and drink since 2004.
- Organic World.Net: Brief info on the global market for organic food and drink, based on information from Organic Monitor
- The World of Organic Agriculture 2009: Table of Contents
- The World of Organic Agriculture: Former editions (with download)
- News of June 12, 2009: Info on the organic food summit
Contact
Organic Monitor
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London W5 2PJ
Tel. +44 208 567 0788
Fax +44 208 567 7164
www.organicmonitor.com
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