A surge in demand from closed shoppers helped UK organic sales rise 12.6% to £ 2.79bn in 2020, the category’s highest level of growth in 15 years.
After a 10th consecutive year of sales growth, the market surpassed original estimates that it would grow to £ 2.5bn in 2020, and was now on track to reach a value of £ 2.9bn by the end of the year, said the soils Association certification organic market. Report for 2021, published today.
Sales also significantly outperformed similar non-organic foods and beverages, the agency said, citing data from Nielsen. [24 w/e 3 October 2020] which showed a total growth of food and beverages was 8%.
Food service sales fell 23.2% to 75.7 million pounds as a result of the impact of the pandemic on the sector, while independent retailers experienced a ‘mixed year’, with success based on location and sales increased just 0.9% to 409.8 million pounds.
However, gains seen in supermarkets and via online and home delivery far outweighed these losses, with revenues increasing 12.5% and 36.2%, respectively, to £ 1.81 billion and £ 494.3 million.
The report added that 18% of all organic supermarket sales were now online. And with shopper habits changing “dramatically,” the channel was now also worth more than the independent channel, accounting for nearly a quarter of all organic sales, he said.
“The pandemic has led to a greater appreciation of food, which has helped increase sales of organic products,” the report suggested.
Confidence in organic products also continued to grow last year, SAC added, with 41% of people agreeing that buying organically produced food was good for sustainability in early 2020, a figure that rose to 50% in July. [Nielsen Homescan Consumer Panel July 2020].
It comes as research published this week by SAC’s sister organization, the Soil Association, also revealed growing concern over industrial farming practices and little appetite for lower food standards, with nearly 50% of 1,002 consumers surveyed concerned about than US-style factory farming increased in the UK.
Among SAC’s top four organic categories over the past year, the dairy market leader enjoyed a 7.7% increase in sales; fresh products increased 15.5%; canned and packaged foods increased 19.8%; while sales of meat, fish and poultry grew 16.8%.
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Beers, wines and spirits also benefited from the pandemic sales rebound and posted an increase of 32.9%, while frozen beverages were up 22.2%, albeit from a much smaller base.
“The unprecedented crisis of 2020 has brought immense challenges throughout the food supply chain, especially for organic companies,” said Soil Association Certification business consultant Finn Cottle.
“It is significant that in times of crisis, people are turning to organic products to ensure the transparency, integrity and quality they provide. Organic is now legitimately recognized as the cornerstone of a resilient food and agriculture system and a vital part of the solution to climate, natural and health crises. “
And with purchases increasingly being made online, there was also a “great opportunity for organic companies to innovate and continue to grow the market,” Cottle added.
While shopping trips became more planned and less frequent, increased consumer interest in good-quality, healthy foods helped drive sales of organic products, he noted.
The report’s results echoed Ocado’s experience during 2020, said Laura Henderson, the retailer’s chief purchasing officer for fresh and frozen produce.
“We saw a marked increase in the sale of our organic food and beverages,” he said. “Our new partnership with Marks & Spencer increased the amount of organic products available, bringing our total to more than 4,000. This is considerably more than other grocery retailers and we are delighted to offer our customers such a variety of options, all with the effortless convenience of shopping online. “