Slow down across organic market
Market growth rates for organic food and drink will
drop as the economy battles. This statement has been made due to new research
from Mintel International.
Americans spending less on
"Rising food and gas prices, the credit crunch and economic
uncertainty have deeply affected people's shopping habits. Across the board,
Americans are spending less and 'organic versus traditional' is a decision many
people are thinking about carefully," said Marcia Mogelonsky, senior analyst at
Sales growth slowing down
that the market for organic foods and beverages will reach $7.2 billion in 2008,
which is a rise of more than 14% from $3 billion in 2003. However,
year-over-year, Mintel has seen sales growth slowing down.
prices and private label brands are major cost-related challenges for organic
manufacturers. The price of all food at home increased more than 7% over the
last year, Mintel further stated.
Another discovery made by Mintel is that consumers are saving
money by going for private label organics. According to the Mintel Global New
Products Database, there were 540 new private label products in organic foods in
2007, a major increase from 35 in 2003.Also, 60% of survey respondents stated
the difference between brand name and private label organics doesn't matter - as
they purchase whatever is available.
Organic shopper to return to
"Economic struggles will undoubtedly change the
way organic food and drink is sold. But we don't expect people to completely
stop buying organics. We anticipate more subtle changes such as the formerly
all-organic shopper who returns to traditional cookie brands while sticking with
organic produce. These small changes will slow market growth," Mogelonsky
• Mintel International
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