Organic foods and beverages have long been a strong trend in
the food industry, achieving double-digit year-on-year growth for more
than a decade, per Nutrition
Business Journal (NBJ). Even in 2008, when the recession first
began to hit consumers, the organic segment enjoyed annual sales of
over 12%, hitting $21.1 billion, according to NBJ. Still, this was a
slower growth rate than 2007’s 16.9%. Furthermore, as the economic
troubles persist, these somewhat more expensive goods are finding it
more difficult to lure shoppers. According to Mintel and SPINS, organic
foods and beverages saw a slight 0.3% decline in supermarket sales in
2009 overall.
Just as sales of organic prepared food offerings have
declined, so have the sales of the ingredients that comprise them.
According to SPINS, organic flour sales saw negative growth of -2% in
2009, after nearly double-digit growth in 2008. Consumers across
channels purchased 4.5% fewer organic baking mixes in 2009 than in
2008, with sales at natural food stores weathering an even larger
crash: -12.6%.