Chicago The organic-growth market is expected to decline as the economy continues to struggle, according to market-research firm Mintel.
The market for organic foods and beverages is expected to reach $7.2 billion in 2008, an increase of over 140% from the $3.0 billion recorded during 2003, according to Mintel. However, the company also noted that sales growth has been slowing year-over-year.
According to Mintel, the price of all food at home increased more than 7% in the past year.
“To cope with higher prices, many shoppers are simply opting not to buy pricey organic or premium brands,” said Marcia Mogelonsky, senior analyst at Mintel.
People are also saving money by reaching for private-label organics, which have exploded in recent years, the company said.
Mintel’s Global New Product Database (GNPD) tracked over 540 new private-label organic foods in 2007, a massive increase from the 35 new products seen in 2003.