PREMIUM brand and organic food sales are still growing despite confidence among British consumers being at a record low.
Figures released this week show confidence has plummeted as the credit crunch continues to place a squeeze on households across the country.
UK consumers were more pessimistic than others around the world, but supermarkets say premium brands still have a role to play and the Soil Association is expecting a 10 per cent growth in organic sales this year.
Market research company Nielsen and the British Retail Consortium (BRC), asked over 1,000 consumers about their thoughts and feelings on personal finances and spending intentions.
Mike Watkins, senior manager at Nielsen's retailer service said: 'The Nielsen/BRC UK Consumer Confidence index now stands at 79'.
'To put this into context, this time last year the index stood at 91, which was the lowest score we had seen since we began polling this survey in 2003'.
'The fact that the score has plummeted a further 12 points is telling of how much consumers are being stretched.'
Despite consumers feeling the pinch, many were still willing to 'trade up' on food, provided they understand the quality and benefits to buying more premium lines, the BRC said.
Speaking at a seminar on the future of UK marketplace, Tesco senior buyer Andrew Carter said: 'Tesco is looking at ways to attract consumers to buy into higher welfare tiers, particularly since they cost more to produce'.
'Getting out of this mess isn?t going to be easy. The gap between value and premium ranges will most likely increase, so it is our job to educate consumers.'
Despite higher prices than other sectors of the food marketplace, organic produce too will remain a key part of the marketplace as consumers have less money to spend.
Sainsbury's said growth in organic sales was 'fuelling its current growth spurt' while market research company Mintel says that, despite the credit crunch, it expected the organic market to grow 44 per cent by 2012.
A spokesman for the Soil Association said: 'We are expecting a very healthy 10 per cent growth this year, which is still four to five times what the general food market experiences in a good year.'
By farmersguardian.com
THE LATEST ORGANIC GROWTH NEWS, FROM THE ORGANIC HOME
Original source: http://www.theorganichome.co.uk/2008/06/organic-still-growing.php
