UK Organic Market Tops £2 Billion

It reached this value after a strong year of growth. Total sales of organic increased by 7.1%  in 2016, while non-organic sales continued to decline. Organic now represents around 1.5% of the total UK food and drink market.

Clare McDermott, Business Development Director at Soil Association Certification said; “It’s a positive time for organic as it ticks lots of boxes for consumers. Organic is extremely relevant for trends towards eating better food, knowing where your food comes from, avoiding pesticides or antibiotics and ‘free from’ diets. Increasingly, we’re seeing consumers chose organic as a shortcut to a healthy lifestyle and this will continue”

Key trends include:

– Supermarket sales of organic have grown by 6.1%
– Independent retailers increased sales of organic by 6.3%
– Sales of organic products through home delivery have grown by 10.5%
– Sales of organic into the foodservice market have grown by 19.1%
– The organic beauty and wellbeing sector grew by 13% to be worth £61.2 million
– Soil Association textile licensees increased organic sales by 30% to £28 million

Organic food is more available than ever. Many high street chains now have organic products on their menus and an increasing number of supermarket chains are offering wider ranges of organic choices, while new independent food stores are also growing rapidly. The success of organic also extends to schools, hospitals and workplaces which have increased their offering of organic food by over 19%.

Overall, UK sales are catching up with market growth rates around the world. The global organic food market is valued at a huge $81billion and the UK represents around 4% of global sales. In many countries, British organic is seen as the best that you can possibly buy – particularly in the Far East, US and Europe. Overall, nearly half (49%) of Soil Association Certification licensees are exporting products with an estimated value of exports at £250m. It’s a market that remains buoyant and attractive to producers wishing to convert to organic. Soil Association Certification saw a 13.5% increase in applications for certification from processors and producers.

Triodos Bank have been an active supporter of the organic sector for more than 35 years. We lend to more than 120 organic farmers in the UK and have a presence at every stage of the supply chain, from farmers and growers to processors and retailers.

“We’ve helped farmers to finance 1,185 hectares of additional organic land in 2016, a threefold increase on last year” said Simon Crichton, Food, Farming and Trade Team Manager at Triodos Bank. “There are a number of opportunities for organic farmers at the moment – but those looking to convert, need to have a solid market for their product. Clearly, having certainty around support payments would be of great assistance but agriculture has always had to take a long term view and organic methods are well placed for both environmental and financial sustainability.”

Hungry for more?

Triodos Bank and the Soil Association are hosting the Bristol launch of the Organic Market Report 2017. We’ll be presenting the report at our free networking breakfast for local professionals.

During the event you will:

• Hear the latest headlines and discover the key insights and trends from the forthcoming 2017 Organic Market Report from Soil Association Certification CEO, Martin Sawyer.
• Hear from inspirational Founder of Bristol’s Better Food Company, Phil Haughton, on their experiences, successes and outlook for organic as an opportunity for future growth in the region.
• Learn about the opportunities and outlook for the organic market from Simon Crichton, Food, Farming & Trade Team Manager at Triodos Bank.
• Have the opportunity to network with local, like-minded organisations.

An organic and locally sourced breakfast will be provided and you will receive a free printed copy of the 2017 Organic Market Report.

You can register for the event here