Post-Pandemic Healthy Eating is boosting organic product sales

The Coronavirus pandemic is leading to an increased demand for organic and sustainable food products. Globally there is a growing awareness regarding the health benefits of a natural, balanced diet which is increasing the demand for organically grown and sustainable foods. The pandemic has had an enormous impact on our everyday lives and has had a profound consequence on the organic sector throughout 2020. As consumers continue the search for healthy, clean food to feed their families, organically certified foods generally have seen a steady and sustained increase in demand, stretching supply lines.

Demand for organic and sustainable foods continues to grow

Organic farming originated in the early twentieth century and is an agricultural system that uses environmentally based pest controls and biological fertilizers derived largely from animal and plant wastes. Demand for organic and sustainable foods is proving to remain strong even in areas where consumer fears have subsided. Previous food and health scares produced an initial sales spike followed by the sustained demand for organic products. Large-scale organic farming increased markedly in the early 1990s. It took over 15 years for global organic product sales to reach USD 50 billion in 2008. Ten years (2018) later, they surpassed the USD 100 billion mark. With COVID-19 changing the way we shop and eat, the next leap to USD 150 billion could be only a few short years away.

Organic food purchases are becoming mainstream in online retail

Based on research by Ecovia Intelligence, the greatest interest and demand for organic food products is coming from the millennial generation. Millennials are digital natives’, buying a majority of their groceries through online marketplaces. Particularly with the ever-present use of mobile devices and the growing influence of millennials, the next growth phase for sustainable products is the advance through online retailing.  Growth rates during the early months of the COVID-19 crisis saw some online portals grow by 300% or more.

The future of online retailing holds many growth opportunities for the organic market giving smaller producers an entrance and depth to their market place which previously could only be reached with difficulty and high resources. Opportunities abound for both producers and retailers alike.

Get in touch with the Santé team to find out more.