Wednesday, June 25, 2008

New Study Shows the Bullish Side of
the Organic Food Market

--trends + business + politics--

A new study released by Healthy Foods International Exposition and Conference indicates that more consumers than ever before are turning to healthy and organic foods. The study is based on solicited feedback of approximately 1000 consumers who responded between November 2007 and May 2008. The study found that respondents indicated they were spending approximately 7.7 percent more on healthy foods in May than they did in November -- $191.45 per household per month, compared with $177.69. These results were stunning to industry insiders as they come at a time when US Consumer Confidence readings are reaching historic lows.

"This appears to be both an acceptance of actual inflation in organic food prices and a deepening desire to find alternatives to conventionally produced goods," the study noted. The survey indicated that 97.7% of respondents spent a portion of their grocery budgets on healthy foods in May, up from 96.5% in November.

"The apparent recession doesn't seem to have affected consumer interest in organic foods, leading to the clear conclusion that consumers see healthier foods as imperative items and not luxury goods that can be pared from the grocery list in cost-cutting times," stated SmallCap Sentinel analyst Brian Kelly. "As consumers battle rising food and gas prices, many traditional purchases such as vacations are out -- but not organic foods."

(Source: PR News Wire, Biz Journal, Trading Markets)

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