Supply holds back organics market

25 January, 2008

A new report from Mintel into the British organic food market, shows that despite impressive sales, growth has been hampered by supply problems.

A new report from Mintel into the British organic food market, shows that despite impressive sales, growth has been hampered by supply problems, as British producers struggle to satisfy our growing appetite for home grown organics.

Mintel's research found that seven in ten (71%) Brits have bought organic produce over the last year and sales of organic food are now worth £1.5 billion, up by some 70% since 2002.

During this time, a growing awareness of food miles has increasingly shifted people's focus towards locally sourced organic produce and as a result imported varieties now account for just 30% of the market (down from 70% back in 2002).

The downside of this Mintel believes is the dramatic shift towards British organic food which has created serious supply problems for the organic industry -there is simply not enough British grown organic food to satisfy demand. This in turn has held the market back from achieving its full potential.

"The lengthy conversion process from regular to organic farming takes several years to complete. Because of this many producers have not been able to react quickly to satisfy the growing demand for home grown organic food. And this has undoubtedly had a huge impact on the growth of the market," said David Bird, senior market analyst at Mintel.





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