Fair trade, local & ethical food support grows

Feb 11, 2010

Overseas research shows that organic sales have bounced back and fair trade and gluten free food sales are growing, while UK and USA research shows consumers have a strong preference for locally sourced fresh foods.

Nearly a third (30%) of UK shoppers say they have specifically purchased locally produced food over the last month, double the 2006 figures, according to new research released by UK-based food and grocery analysts IGD on February 1. Support for ethically produced foods in general has withstood the pressures of an 18-month recession and is growing, despite the tough economic conditions.

When asked about food they have specifically purchased over the last month, shoppers responded:

* 30% said locally produced food (up from 15% in 2006)
* 27% Fairtrade products (up from 9%)
* 18% products with high animal welfare standards (up from 11%)

Joanne Denney-Finch, chief executive, IGD, said: "These figures prove what we have been saying throughout the recession - shoppers are looking for both value and values. They are not simply looking for cheaper food in tough times, they also expect the grocery industry to support their moral and ethical values."

Asked about reasons for supporting local food in particular, most said that it was fresher, with the biggest rise over the last few years was support for the local economy:

*57% said they purchased local food as it has not travelled as far and is therefore fresher
* 54% wanted to support local producers and farmers (up from 28% in 2006)
* 34% wanted to support local retailers (18% in 2006)
*29% wanted to keep jobs in the local area (up from 14%)
When IGD asked shoppers what improvements they would like to see to their food and grocery shopping experience, support for locally produced food was up, with 31% saying they would like more local products available to them, compared with 12% in 2005.
As well, suppliers in North and South American are rapidly expanding organic, free trade and gluten free lines. The packaged gluten-free food market in the United States was estimated to be worth $1.56 billion in retail sales in 2008, with demand projected to rise to $2.6 billion by 2012.

Source: GROCERY & NATURAL FOOD Merchandiser