The Soil Association’s Organic Market report reveals sales of organic products increased by four per cent in 2014. The new figures show this is significant growth in a year when both food prices and food spending fell.

Shoppers spent an extra £1.4 million a week on organic products and the organic market exceeded £1.86 billion, despite a 1.9 per cent drop in food prices and a 1.1 per cent drop in sales of food and drink overall. Growth in sales across Soil Association Certification symbol holders increased by 7.7 per cent.

Dairy products and fresh fruit and vegetables continue to be the most popular organic purchases. Overall, the strongest market growth was through online shopping and box schemes (11.7 per cent) and larger independent retailers (5.7 per cent) which offer the choice and convenience of extensive organic ranges in one place. More than a quarter of spending on organic products (27.9 per cent) is in the dairy aisles with yoghurt sales increasing by 13.8 per cent and dairy sales increasing by 6.5 per cent -a stark contrast to the three per cent contraction of the non-organic dairy market.

Sales of organic eggs and poultry were up 15.8 per cent and 8.2 per cent, while non-organic sales dipped by 6.2 per cent and 3.3 per cent respectively.

There were also sharp increases for a wide range of other products against a background of sliding non-organic sales including fresh fruit (up 6.4 per cent), tea (up 13.7 per cent), cereals (up 4.2 per cent) and biscuits (up 7.2 per cent). While sales of organic vegetables fell by two per cent, but in a context in which non-organic sales plummeted at five times this rate. There was also growth in catering (13.6 per cent), health and beauty (20 per cent) and textile (3.4 per cent) sectors.

However, despite the continued demand from UK consumers, figures from Defra show the area of land under organic management decreased in 20141. In June 2014 the UK’s organic land area was reported to be 575,349 ha amounting to 3.3% of the agricultural land area being managed organically, with 4% of this in conversion and the rest fully organic. The area of in-conversion land fell by 24% and fully organic land by 3.9 per cent in 2013.

2014 also saw new research highlighting the higher profitability of farming organically, and higher-than-expected yield potential.

According to data from the government-funded Farm Business Survey, analysed by the Organic Research Centre and the Soil Association, the financial performance of organic farms outstripped that of comparable non-organic farms in the seven years from 2006 to 2013.

Liz Bowles, head of farming at the Soil Association, said; “These are positive times for the organic sector and we have good reason to believe current levels of market growth will be sustained in the long term. This is thanks to a combination of committed consumers who understand the benefits of organic farming for themselves and the environment, new CAP support for farmers, new research and product innovation, and favourable economic conditions.

"We are seeing once again that rewards are there for those that stick with organic, make great products and sell them well. The UK organic market is expected to grow steadily again in 2015 and should break the £2 billion barrier in 2016.

“The reduction in land in conversion reflects years of uncertainty over the outcome of CAP reform. But the prospect of more generous than expected CAP payments from January 2016 in England, Scotland and Wales – coupled with a second consecutive year of market growth now confirmed – should encourage an expansion of organic production. But there are challenges at both ends of the supply chain.

Increasing supply to meet increasing consumer demand without sucking in exports is key, but I am confident this can be achieved so long as major retailers and manufacturers send the market signals needed to build the confidence of farmers and growers.”