In 2024, the UK organic market expanded by 7.3%, reaching a total value of £3.7 billion, as detailed in the Soil Association Certification's 'Organic Market Report 2025', published on February 25. This figure represents a doubling of the market size compared to a decade earlier.
Organic sales increased across all key channels and product categories. Notably, independent retail, non-food, and hospitality sectors experienced robust growth. Major food and drink retailers saw organic sales reach £2.43 billion, an 8% increase from the previous year. Unit sales of organic products grew by 4.7%, outpacing non-organic food and drink, which grew by 1.2%.
The report indicated a resurgence in organic dairy, highlighting a return to strong unit growth as a marker of "robust demand." It also noted that 67% of consumers intentionally purchase organic products, with younger, lower, and middle-income households being the most active organic shoppers.
Data from vegetable box specialists, Locavore, showed that 28% of its customers had an annual household income of under £30,000, with half earning less than £20,000. Georgia Philips, Soil Association Certification's commercial and marketing director, remarked on the growth across all food and drink channels and product categories, emphasizing the role of Gen Z shoppers in driving demand for organic products.
"Cost of living pressures haven't gone anywhere but, now accustomed to higher prices, consumers are prioritizing other areas, such as health and the environment," Philips stated.
The report also noted that 50% of organic suppliers reported a positive year for volume and value sales in 2024, with 20% noting "a significant sales increase." Organic dairy and produce categories accounted for 49% of all organic sales through major retail channels. Online platforms and home delivery services also contributed to organic sales, with a 3% uptick in home delivery.
Despite growth, a gap remains between the organic market and production in England, with a reliance on imports. British farmland dedicated to organic production stayed at 3% in 2024, though land transitioning to organic nearly doubled. The Soil Association Certification, alongside environmental NGOs, advocates for a 10% government target for organic farming to support sustainable agricultural transition in the UK.
Philips noted, "There are still some significant barriers to overcome to see UK organic market share scale as it has done in so many European countries."
Source: Agriland