I run an organic delivery business in Melbourne Australia. Over the last couple of months, I have had a lot of people presuming my business would be starting to struggle because of the credit crunch. I guess as organic produceï¿½is a premium item, consumers with a tight budget would tend to go with cheaper non-organic counterparts.
But to be honest my business is still growing, there has been no drop in total sales over the last couple of months, although I have noticed slower growth (but this also happened at the same time last year). This could be because Australia isn’t yet affected by recession like many of the worlds other developed countries. But I think there is another good reason, and that is people that want to look after their bodies and their families, are more likely to sacrifice junk food and take aways than stop buying organic.
An article in the Australian Food NewsÂ starts with the headline that organic food is not safe in the downturn, but then also goes onto say that growth is slower rather than there is a decline in sales. In the same article it shows research by Mintel; the organic industry grew (worldwide) last year by 140%! More and more people are being educated on their food choices are starting to purchase organic produce. Mintel conclude from their research that Economic struggles will undoubtedly change the way organic food and drink is sold. But we don’t expect people to completely stop buying organics. We anticipate more subtle changes, such as the formerly all-organic shopper who returns to traditional cookie brands while sticking with organic produce. These small changes will slow market growth.
In another article in the Australian Food News published yesterday (17 Nov 2008) states “The trend toward health and wellness and the desire of many consumers to become green, is likely to see continued success over coming years. The economic downturn may limit growth in the next year, however.”
So growth will be slow, but growth is growth, and I don’t see any organic retailer or farmer going out of business over the next year.Â