Organic growth driven by “Green” issues

Posted by Josette Dunn on 29th March 2010

According to Mintel’s latest report on green living, the environment remains a concern for the majority of Americans. More than one-third (35%) of survey respondents say they would pay more for ‘environmentally friendly’ products.

World on a Plate

“Given this increased interest in the environment over the past few years, nearly every segment of consumer products now offers a ‘green’ option for shoppers,” comments Chris Haack, Mintel senior analyst. “Food and beverage and personal care are the two most mature categories* and account for the majority of green products in the marketplace.”

After rapid sales growth of more than 24% from 2006-08, the natural and organic food and beverage category saw only slight growth in 2009 (1.8%) as the recession took its toll on nearly every sector of the consumer goods marketplace. Despite this stall, sales in this segment are forecast to grow nearly 20% from 2010 to 2012.

Only 21% of organic food buyers have cut down or eliminated organic purchasing, while 20% have switched to less expensive organic options. Meanwhile, nearly half (48%) are buying as much or more organic food than before the recession. This suggests that organic food is a core lifestyle element for many people who may make cuts in other areas of their budget before they will turn away from organics.