Thursday, June 26, 2008

Organic Food Industry Booming Despite Recession

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About 20% of the American public makes it a point to eat primarily organic food, and the numbers seem to be growing by a recent report despite higher gas prices and a looming recession.

Anyone who has desperately wandered the aisles of a Whole Foods store knows: eating healthy ain’t cheap. Americans who want to see an organic or “grass-fed” label on their food tend to spend 10% more for basics like peanut butter, jelly, bread, pasta, chicken, and beef. According to a report released to ENN, the smaller brands producing such foods are showing a considerable amount of economic growth. Ian’s Natural Food’s, for example, grows 45% annually while Nature’s Path Foods grew 30% in the first half of this year.

Overall, organic foods raked in “4.4 billion in sales for the 52 weeks ended April 19.” Sales are expected to grow to 6.8 billion by 2012 according to the latest economic models.

Is the end of preservative-loaded food nigh? Not a chance, but shoppers are well aware by now that organic foods are increasing in shelf-space at bigger supermarket chains. Interestingly, researchers are finding that while some loyalty for certain organic brand names exist, it’s “not as much as you would hope,” according to Pam Dietz, director of soy milk manufacturer Vita Soy. Rather than products like Annie’s natural macaroni and cheese completely replacing Kraft Velveta shells and cheese, the bigger companies like Kraft are offering their own organic line of foods.

Apparently fewer Americans are willing to put a price tag on their stomachs despite economic threats. Could it be a sign of more individual, self-empowerment?

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