LONDON—Despite the slowdown in the economy, Organic Monitor sees growth potential for natural and organic products in the year ahead. What do they expect to see?
- Global sales of organic foods and beverages will continue in 2009, albeit at a slower rate due to the economic situation. Expect organic food sales via discount retailers to increase, as will private label brands that address greater price sensitivity.
- Sales of natural and organic cosmetics will also continue to grow, with the category topping $2 billion in sales in Europe in 2008. Mainstream retailers are netting the most sales, and private label products are also attracting consumer interest in this segment.
- Growing interest in social and trade issues are helping bolster sales of Fair Trade products, which posted global sales of $3.5 billion in 2008. In Europe, some retailers are even converting their supply chains of some products to Fair Trade.
- Supply and demand are reaching equilibrium in the organic ingredient quadrant, which should bring down prices after years of undersupply. Also look for greater globalization of the supply chain.
Additional hot areas include soy foods, Fair Trade and organic textiles, and more emphasis on corporate sustainability, including ethical business practices and carbon neutral operations.