Organics and the Economy

As you can imagine, a poor economy prompts the average person/consumer to make difficult choices on how to spend their money. As important as food and health are, groceries often get short-changed in tough times, with rising food costs going head-to-head with optimal nutrition.

Recently, Mintel reported the recession will slow growth for organic foods and beverages, as consumers tighten their grocery budgets and choose conventional over organics. Given this climate and prediction, organic supplements would surely be even slower in growth.

The LA Times has weighed in on the subject, suggesting consumers forgo higher-priced organic produce for lower-priced conventional fare. The paper reviews the science on any nutritional advantage of organic produce vs. conventional, concluding there is more belief in this disparity than scientific proof. While the answer on nutritional advantage of organics is clearly not final, the Times treads into more volatile territory in suggesting the pesticide content of non-organics is probably nothing to fear. While the paper quotes proponents of both sides of the pesticide debate, it ends up recommending consumers cut back on organic produce, instead buying conventional, especially for thicker-skinned produce, and giving it a really good washing.

I have no doubt consumers facing the difficult choice of organic vs conventional, relative to price points, will more than likely go with the cheaper options. I'd hate to see the organic sector give back lots of the gains it's made over the past decade, nor do I want to see consumer short-change their health and nutrition. And what does this mean for organic supplements, which are much further down the line than whole produce? With the price of some supplements high even before the recession hit, organic supplements might be a luxury people can't currently justify. However, organic supplements could well be a niche with loyal consumers not ready to give up these products.

I wonder if most dedicated organics consumers won't just cut back a little, buying organic for segments such as whole produce and basic foods (milk, yogurt, bread etc.), while giving up some heavily processed organic food products, such as organic microwave meals or certain organic snack foods.