British enthusiasm for organic food shows no sign of waning thanks to a loyal consumer base and a green image, despite rising food and fuel prices, the head of Britain's top organic association said in a recent interview.
The sector's lofty double-digit growth of years past may be constrained in the near term as some cash-strapped consumers choose conventional foods over higher-priced organics, but contraction appeared unlikely, he said.
"It is inevitable that we might see some (decline in demand) among the less deeply committed consumers, but it's more likely to be a plateau than a reverse," said Patrick Holden, director of the Soil Association, which certifies more than 70 percent of the organic produce sold in Britain.
"When people are feeling the pinch they cut back on the luxuries, but many people that are committed to buying organic food do not regard it as a luxury. They regard it as a necessity and an intrinsic part of their lifestyle. They'd rather cut back on foreign travel and DVDs," he told Reuters.
Organic products are grown without chemicals or pesticides and tend to cost more, but a growing number of consumers are willing to pay the premiums because they view them as healthier and more environmentally friendly.
Organic products represent about 2 percent of total food and drink sales in the UK, and topped 2 billion pounds for the first time in 2006, according to the Soil Association.
Annual sales growth may slow to around 10 percent this year, down from roughly 20 percent a year expansion over the past decade as organics broke into the mainstream.
"Our predictions for this year are for about a 10 percent growth in the market. That's probably realistic," Holden said, adding that the true scope of the slowdown will depend on how high food and fuel prices rise and whether major global food shortages develop.
Crude oil prices have doubled over the past year, hitting an all-time high near $128 a barrel last week, and some analysts have forecast $150 to $200 a barrel oil in the years ahead.
The price of natural gas is also soaring and driving up the cost of conventional farming inputs like chemical fertilisers and pesticides, which could eventually encourage more organic farming in areas currently dominated by conventional methods.
