Organic Market Growth Slowing

BELLEVUE, Wash.—Certain categories in the organic market are starting to slow, as are overall sales of organic products, according to a new report, “The Many Faces of Organic 2008,” from The Hartman Group. The study explores how far into the mainstream organic has reached—representing ever-more diverse ideas and practices to a wider audience—and how any changes in behavior will influence further innovation.

“Many factors are currently at play to influence the current and future picture of organic consumption,” said Laurie Demeritt, president and COO, The Hartman Group. “Our research clearly reveals that while organics are still an important cue to millions of consumers for products that contribute to healthy lifestyles, conventional culture is now including organic as but one of many symbolic distinctions of equal importance beneath the overall moniker of ‘quality.’ Specifically, this report shows where organic now resides in terms of importance in consumers’ minds.”

While self-reported consumer purchase activity is leveling off, Hartman Group research shows the organic market is far from reaching an expiration date or even a saturation point. Related to cultural concerns for quality and health (especially for children, personal and family welfare), consumers resonate more strongly today than ever before to fresh organic categories.

“In 2006, for example, 49 percent of organic buyers were willing to pay 30 percent more for organic milk vs. conventional milk,” Demeritt said. “In 2008, 62 percent of organic buyers are willing to pay 30 pecent more for organic milk vs. conventional milk. Similarly, in 2008, 65 percent of buyers will pay more for organic meat/poultry compared to 54 percent in 2006.”