Market analyst Key Note is predicting that the organic food sector will return to a period of steady — if modest — growth over the next three to four years as the economy climbs out of recession.
Key Note’s Organic Food & Drink 2010 report shows that overall market growth dipped to 0.3% in 2008, rising slightly to 1.1% in 2009. The report suggests that the market will achieve an annual growth rate of 7% by 2013-2014.
Key Note says organic commands around 2% of the value of the total grocery market. Stronger performing categories include organic baby food (45% of the total market) and dairy (8%).
Key Note says supermarkets continue to account for three quarters of organic food sales, while supermarket own label commands 60% value share overall. Tesco has a 24.5% market share, with Sainsbury at 20.5% and Waitrose at 14.5%. Box schemes claim a very respectable 9% share, while independents manage just 2%.
• Organic Food and Drink is published by Key Note Ltd at £899. More information is at http://bit.ly/caWmL5
