Organic beauty sales buck downward UK retail trend

The increase meant that beauty sales in the country reached £27m, representing a ‘dynamic’ performance, according to the organic certification body the Soil Association.

The figures may come as a surprise because the UK has been hard hit by the economic downturn, which has forced many consumers to buy fewer premium products, as well as switching to low-cost retailers and private label brands in an effort to make budgets stretch further.

This is evinced by the fact that organic sales at budget-orientated supermarket chains Asda and Co-operative rose by 25 per cent and 15 per cent respectively, whereas sales at the more up market Marks and Spencer fell by 9.6 per cent.

Organic beauty in contrast to food sales​

Overall sales of organic products increased by 1.7 per cent in the UK during 2008, to reach £2.1bn, but the association pointed out that the majority of this was attributable to the continued trend for food price rises, rather than volume sales increases.

In addition, the market report shows that there has been a sharp fall in sales of certain organic products, specifically breads, fruits and prepared food.

Although personal care organic sales seemed to be riding out the worst of the storm, it is expected that the rate of growth will fall in 2009, as consumers come to terms with shrinking budgets.

Financial crisis spells mixed picture​

“This has been a really difficult period for all retailers, and organic sales have suffered along with the rest of the economy. This report describes a very mixed picture as consumers react to the financial crisis,”​ said Peter Melchett, Soil Association policy director.

However, Melchett believes that, due to ethical commitments on the part of organic consumers, many will remain loyal to organic products and brands despite financial constraints.

“Those consumers who are committed to organic products appear to staying loyal. This show the underlying resilience of the organic market, which we believe will grow again once the economy picks up,”​ said Melchett.