UK organic food sales growth slows - report

Published 04/06/2009, 06:42 AM
Updated 04/06/2009, 06:48 AM
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* Sales of organic food hit across all sectors

* Fruit, bakery products, soft drinks worst hit

(Adds further details)

LONDON, April 6 (Reuters) - Growth in the sales of organic food in the UK slowed to 1.7 percent in 2008, well below the average annual growth rate of 26 percent over the last decade, according to the Soil Association's Organic Market Report.

Sales of organic food in the UK rose to 2.1 billion pounds ($3.13 billion) in 2008, according to the report, which said that sales had been hit across all sectors but that a hard-core of consumers were staying loyal to organic produce.

"This has been a really difficult period for all retail, and organic sales have suffered along with the rest of the economy. But those consumers who are committed to organic products appear to be staying loyal," Peter Melchett, the Soil Association's policy director said in a statement on Monday.

The report said there had been a sharp fall in sales of fruit, bread and bakery products, soft drinks and prepared foodstuffs but that sales of organic food sold at farmers' markets rose 18.6 percent to 23.7 million pounds in 2008.

Asda showed the strongest growth of the chain store retailers, increasing sales of organic products by 25 percent in 2008, while Tesco saw organic sales fall 9.9 percent.

The report said there was a core of consumers who were determined to stick to their organic principles with 36 percent of these committed consumers expecting to spend more on organic food in 2009. ($1=.6702 pounds) (Reporting by Rhys Jones; Editing by Greg Mahlich)

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