Mintel: Shoppers Stick With Organic Purchases in Down Economy

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January 5, 2010

While budget-strapped consumers have been extremely frugal this past year during the recession, those who buy natural and organic food are staying loyal to the category, according to Mintel.

Nearly 40 percent of consumers claim they haven't changed organic product purchasing habits because of the recession, and a mere 3 percent have stopped buying organic products altogether, according to a recent survey conducted by the Chicago-based research company.

"Heavy users of natural and organic food and drink are most likely to indicate they've traded down to less expensive organic options," said David Browne, senior analyst at Mintel. "However, less-frequent consumers of organic products have shown that they haven't shifted their behavior. This is good news for the organic food and drink market, as this group may begin to buy more once recession-related fears begin to fade."

With a slight decline in supermarket sales in 2009 (-0.3 percent), Mintel and natural products industry expert SPINS expect the organic food and drink market to recover gradually over the next two years, but not at pre-recession growth rates. Consumers have made shifts in their purchase behavior that these firms say are likely to carry on through this time period.

"The natural and organic food industry has an opportunity to instill trust and educate consumers as we work our way out of this recession," Browne added.

Currently, 33 percent of survey respondents trust the term "natural" on labels and nearly half (45 percent) trust the term "organic." However, roughly 30 percent of respondents say they don't know if they can trust either term.

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