Rebecca Smithers 

Organic consumers avoiding processed and red meat, sales show

Data on British buying habits in 2015 reveals a move away from products such as sausages and bacon in favour of fish and poultry
  
  

The organic food and drink sector shows a continuing recovery for the third year running.
The organic food and drink sector shows a continuing recovery for the third year running. Photograph: David Davies/PA

Consumers of organic food are avoiding processed and red meats in favour of fish and poultry, according to data on UK buying habits for 2015.

The move away from products such as sausages and bacon may be because high-end consumers are heeding growing warnings about their impact on health. That was reinforced by an assessment by the World Health Organisation in October that placed cured and processed meats in the same category as asbestos, alcohol, arsenic and tobacco as major causes of cancer.

Sales of organic sausages and bacon were down 14.4% last year compared with 2014 and sales of red meat fell by 8.1%. In contrast, sales of poultry and fish were rose by 13.1% and 25.1% respectively.

The changes in consumer habits happened against the backdrop of a continued recovery for the sector with sales of organic food and drink in the UK growing for the third consecutive year by 4.9%. The Soil Association, the organic food trade association, believes this is due to more “millennial” consumers who are prepared to pay a premium for healthier options and shifting shopping patterns away from “the big weekly shop”.

Shoppers splashed out an extra £1.73m a week on organic products in 2015, according to the Soil Association’s 2016 Organic Market report - as the steady rise of the market mirrored global growth and widening interest in the sector. Star performers in 2015 included jams and spreads (up 28.1%), and tea (up 12.8%).

The organic trade body - which also certifies products - forecast that the market, now worth £1.95bn, was set to recover further and top £2bn this year, leapfrogging its pre-recession peak of £2.11bn in 2008.

Although organic food and drink is dwarfed by the scale of the overall UK food and drink market - of which it has just a 1.4% share - sales of organic products have continued to outperform the non-organic grocery market which decreased by 0.9% in the same period as mainstream food retailers struggled to retain market share in the grip of an ongoing price war.

UK sales of organic products
UK sales of organic products

“In a year of challenging deflation, in which retailers have struggled to grow sales, organic products have performed exceptionally well,” said Clare McDermott, business development director with the Soil Association. “They offer a choice to customers who care about provenance and quality. Despite the turmoil in the market, savvy customers are searching out and remaining loyal to premium food options.”

This year’s figures also highlight a shift in consumer shopping habits away from a weekly shop in favour of “little and often”. The independent and box scheme sectors (which grew by 8.2% in 2015) have both benefitted from these changing habits and an increasing desire from consumers to avoid ready meals and “cook from scratch”. Consumers are now spending more than £544m every year through these channels.

The sustained interest in organic is driven by an increase in young and socially conscious “millennials” (born from 1980 to the early 2000s) with strong social, ethical and environmental values, the report said. They want to know the origins of their food and are willing to pay more for products with quality assurance standards supporting the environment, society and animal welfare.

A decade ago, supermarkets boasted around 80% of organic sales, but they now have less than 70% - equivalent to a £200m sales switch which have boosted independent retailers such as Planet Organic and As Nature Intended, which both opened major new stores last year.

The four biggest retailers of organic continue to be Ocado, Sainsbury’s, Tesco and Waitrose, with the lion’s share of total supermarket sales - 80% - between them. But the discounters Aldi and Lidl - through their established European networks - are broadening organic choice at a more affordable price in the UK.

Online retailer Ocado - hailed in the report as “a real success story” has increased its range from 2,654 lines to 3,344, with online sales of organic set to increase further.

At Tesco sales of organic fruit and vegetables have risen by more than 18% over the last year - double the market average. Tesco fruit commercial manager Gareth Wilcock said: “The revival of organic foods has been gathering pace over the last few years, with keener prices and better availability both playing a major part in that.”

George Scott, food and grocery analyst with Verdict Retail, said: “Organic food is no longer niche and I think this upward sales trend is here to stay. It is very significant that we have discerning consumers who are prepared to trade up for the foods where they want the best quality and assurances of provenance.”



 

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