From Fairtrade food to eco-friendly travel, green goods market grows by almost fifth over two years

This article is more than 9 years old

This article is more than 9 years old

Consumer spending on "green" goods from Fairtrade food to eco-friendly travel grew by almost a fifth over two years despite the economic downturn, figures reveal today.

The ethical market in the UK was worth £43.2bn in 2009 compared with £36.5bn two years earlier – an increase of 18% – according to the Co-operative Bank's annual Ethical Consumerism Report.

The annual report has been compiled since 1999 and analyses sales data for sectors including food, household goods, travel and ethical finance.

Some sectors enjoyed huge growth, including Fairtrade goods, which pay a premium to farmers and producers in poor countries to help them work their way out of poverty, while sales of organic food dwindled .

Fairtrade food grew by 64% to reach sales of £749m, while sales of the RSPCA-backed Freedom Food products tripled in two years to reach £122m.

But sales of organic food slumped by 14% to £1.7bn as cash-strapped shoppers opted for cheaper options. Ethical personal products, including clothing and cosmetics, was the fastest growing sector, increasing by 29% to reach £1.8bn. The market for green home products such as energy-efficient appliances grew by 8% in two years to reach £7.1bn.

Tim Franklin, chief operating officer of Co-operative Financial Services, said: "This annual report clearly shows that the growth in ethical consumerism continues to outstrip the market as a whole. I have no doubt that this will come as a surprise to those commentators who thought ethical considerations would be the first casualty of an economic downturn.

"However, whilst the rapid growth in areas such as Fairtrade and ethical finance, which we have witnessed in previous years, continues, other areas such as micro-generation and renewable electricity have unfortunately failed to make significant progress. We welcome the introduction of feed-in tariffs for household renewable generation and would hope to see the impact of these come through in future years' reports."