25 Jan 2008


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Organic foods market held back by supply problems - Mintel

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The market for organic food in the UK is set to increase by half its size again in the next five years, but supply problems are holding it back.

Planet Organic: one part of a growing market

That’s according to a report from analysts Mintel, out today.

Mintel says the market will increase in value by some 54% over the five years to 2012, and is set to break through the £2bn mark by 2011.

But growth has been hampered by supply difficulties, as British producers struggle to meet the increasing demand.

David Bird, senior market analyst at Mintel, said: “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. This has undoubtedly had a huge impact on the growth of the market."

According to the survey, seven out of ten Brits (71%) have bought organic produce over the past year, and sales of organic food are now worth £1.5bn.

That represents a 70% increase since 2002, Mintel says.

Consumers’ growing awareness of food miles has brought about a shift towards locally sourced products. Imported varieties now account for just 30% of the market – down from 70% in 2002.

Organic meat is set to be the fastest-growing sector over the next five years, as consumers back higher welfare standards.

Mintel believes it will grow by 71% between now and 2012.

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