UK: Some organic categories start to recover as consumer confidence increases

Published Sep 16, 2024

Tridge summary

Research agency Two Ears One Mouth has found that there is a decrease in consumer concern about the cost of living crisis, with 71% concerned, a 15% decrease from the previous year. The organic segment of meat and dairy products has experienced double-digit growth, with beef and poultry driving this growth. Organic milk, yogurt, and butter, spreads, and margarine (BSM) have also shown positive growth. However, the organic category still faces challenges such as reducing supplies due to some farmers converting back to conventional farming and the need to communicate quality credentials beyond price to build consumer trust and continue the demand recovery.

Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

According to research agency Two Ears One Mouth, 71% of consumers are currently concerned about the COL crisis. While this is high, it is down 15 percentage points versus this time last year (August 2023). Nearly half (47%) of consumers were claiming in August 2023 that they coped with this by planning their meal and food spend more carefully. Roll forward to August 2024 and this has dropped to 39%. So, if the tide is turning for some in terms of financial worries, are we seeing the start of a recovery for premium organic red meat and dairy? Organic MFP makes up just 0.2% of total MFP volumes, so it remains small. However, its performance in the last year has outstripped that of non-organic MFP and accelerated to double-digit growth of 12.9% in the latest quarter (Kantar, 12 w/e 4 August 2024). Year-on-year volume % change – MFP Source: Kantar, w/e 4 August 2024 Delving in to the various proteins highlights that the organic volume growth in the last 52 weeks has come from beef and ...

Source: Ahdb