Less Demand for Organics – So Prices Will Drop

Here’s how it works.

As the recession reduces the demand for organic ingredients, the total supply of available organic products falls back in line with the total demand.

This means premium pricing will start to tail off, and experts claim it should start as soon as fall 2009, i.e. right now!

So says the Organic Monitor, which keeps tabs on the international organic industry.

In short, there’s enough organic stuff to satisfy people’s needs, so sellers can’t keep gouging consumers.

And the good news is the Organic Monitor believes the price drop will continue for a couple of years. Plus the lower prices will help improve sales for low-cost organic retailers, and private labels.

For example, the leading organic brand in the United States is a Safeway store brand. Go figure.

Although, the Organic Monitor does warn that the recession will effect the growth of the organic market. It won’t halt it, but will slow it down a bit.

Via Food Navigator.

Image credit: rc!

Tags: econimics

This entry was posted on Tuesday, November 3rd, 2009 at 4:54 pm and is filed under Organic Food. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.