Organic Food Market Feel Hot

The organic food market may have been hot, but U.S. economic challenges have cooled down sales. While sales have increased 140 percent since 2003, and food and beverage sales are expected to reach $7.2 billion this year, growth has slowed in recent months, reports the research firm Mintel.

Economic concerns are causing Americans to take a harder look at grocery purchases. “Across the board, Americans are spending less and ‘organic versus traditional’ is a decision many people are thinking about carefully,” says Marcia Mogelonsky, Mintel’s senior analyst points out.

The research firm cites two major cost-related challenges for organic food producers: rising food prices and private-label brands. Prices for food consumed in the home increased 7 percent this past year, according to Mintel’s report. “To cope with higher prices many shoppers are simply opting not to buy pricey organic or premium brands,” says Mogelonsky. Read more