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Global organic food sales grow between 25% and 100% due to the pandemic

Global organic food sales grow between 25% and 100% due to the pandemic

Without a vaccine in sight, consumers choose organic foods to immunize against Covid-19 .

Even with the global economy in pieces, with an estimated contraction of 3% in 2020, the organic food industry, by contrast, is in robust growth of 25-100%, as consumers continue to recognize the strengthening of immunity as prevention against coronavirus.

The research entity Ecovia Intelligence expects that the sales of organic products in the world will continue with the growth curve after the Covid-19. Whole Foods Market, the world’s largest natural products retailer, had to limit the number of items in its online store due to unexpected demand.

In the UK, Abel & amp; Cole reported a 25% increase in sales, while Riverford Organic also reported an unspecified increase in demand. Traditional stores are gaining ground from emergency measures taken by governments.

Emporiums of natural and organic products have remained open in many countries as essential. They are attracting new buyers, while existing buyers are spending more than before. In France, some organic stores have sales of more than 40%.

India expects high sales during the pandemic
In India, the outlook is even more optimistic. Demand has increased by as much as 100% for some organic food suppliers. New Delhi’s famous I Say Organic, which has a store on Gurugram and operates mainly through e-commerce, has seen a 100% increase since the closure was imposed on March 25.

The e-tailer Naturally Yours saw a 70-80% increase. Gujarat organic franchise leader Suryan Organic saw a 25-30% increase in sales. Modern Bazaar, an organic food trading franchise in North India, saw a 25% increase in sales.

Another organic e-retailer, Bengaluru-based Healthy Buddha, is taking advantage of the 30% increase in sales. Rajasthan-based organic food company Natureland Organics has hit a high of 60% since mid-March.

Healthy snack maker Nourish Organics also saw a 30% increase in sales in March. The increase in sales encouraged many organic retailers to stay until almost midnight, betting on taking advantage of the increase in demand.

World demand understood by the breakdown in exports
The increase, on the other hand, brought supply problems. The organic food industry is global, with international supply channels now under pressure. Many of the food ingredients used by Europeans and North Americans are produced in Asia, Latin America and Africa.

Blockages are causing disruptions in supply channels. For example, India is the largest source of teas, herbs, spices, and related organic ingredients. Taxes imposed in March had to halt food processors and exports, causing supply shortages.

Demand for organic food will survive after the pandemic
The demand for organic food is expected to remain strong after the Covid-19 era. Past health problems also led to spikes in sales, followed by sustainable demand for organic products.

For example, the bovine spongiform encephalopathy (BSE) crisis in 2000 increased the demand for organic meat in Europe, and sales continued after that. Similarly, the SARS outbreak demanded more organic food in China in 2004 and continued later.

The melanin scandal in 2008 put pressure on demand for organic baby food in China. As a result, in just a few years, the demand for organic children’s products has become the highest in the world. In 2018, the global organic market surpassed US $ 100 billion and, with Covid-19, consumers began to see organics as a more nutritious food to maintain their health, and the jump to US $ 150 billion could occur in the next 5 years.

The update on the global organic and sustainable food market will be discussed at future events at the Sustainable Food Summit.

Source: Pure Eco India

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AOA Chile