The Organic Trade Association (OTA) reported that total organic sales last year grew 17% despite tough economic times.
US organic food sales grew 16% to reach $22.9 billion, while organic non-food sales grew 39% to $1.648 billion. Organic food sales is said to now account for 3.5% of all food product sales in the US.
According to OTA, drivers for the increase include increasing stores offering organic products. Major organic brands are also offering more coupons, and value-positioned products, while private label brands have also increased contributing to more sales.
It must be true as I've visited Whole Foods and Trader Joe's a couple of times, and they're always packed!
But I do wonder about the organic non-food market
though. Food maybe one thing but when it comes to cosmetics and
personal care products (and even organic fabrics), consumers might be a
little bit more thrifty in that area. As far as I heard, organic
cosmetics and toiletries still have premiums compared to their
naturals-category sibling.
Consulting firm Kline & Company also noted in one of their recent cosmetic & toiletries report that given the current economic climate, marketers may likely forgo the extra cost for certified organic ingredients in lieu of natural-inspired cosmetic and personal care products (products with ingredients that range from unnatural to those that are natural wherever chemistry allows but also include silicones, polysorbates, ethoxylates or chemical derivatives...).
US organic food sales grew 16% to reach $22.9 billion, while organic non-food sales grew 39% to $1.648 billion. Organic food sales is said to now account for 3.5% of all food product sales in the US.
According to OTA, drivers for the increase include increasing stores offering organic products. Major organic brands are also offering more coupons, and value-positioned products, while private label brands have also increased contributing to more sales.
It must be true as I've visited Whole Foods and Trader Joe's a couple of times, and they're always packed!
But I do wonder about the organic non-food market
though. Food maybe one thing but when it comes to cosmetics and
personal care products (and even organic fabrics), consumers might be a
little bit more thrifty in that area. As far as I heard, organic
cosmetics and toiletries still have premiums compared to their
naturals-category sibling.Consulting firm Kline & Company also noted in one of their recent cosmetic & toiletries report that given the current economic climate, marketers may likely forgo the extra cost for certified organic ingredients in lieu of natural-inspired cosmetic and personal care products (products with ingredients that range from unnatural to those that are natural wherever chemistry allows but also include silicones, polysorbates, ethoxylates or chemical derivatives...).
"Manufacturers are weighing the value of investing in certification against the potential return on that investment," says Kline.
Recent Comments