• by Tanya Gazdik , May 4, 2009

Sales of organic products grew during 2008, despite a weakening economy, according to the Organic Trade Association.

U.S. sales of organic products, both food and non-food, reached $24.6 billion by the end of 2008, growing 17.1% over 2007 sales, according to the OTA, which released final results from its 2009 Organic Industry Survey on Monday. However, the industry's growth rate last year was its slowest since 2004, when the year-to-year increase was 14.6%. Organic food sales grew 20.9% in 2006 and 18.5% in 2007, according to OTA.

"Organic products represent value to consumers, who have shown continued resilience in seeking out these products," said Christine Bushway, executive director of the Greenfield, Mass.-based OTA, in a statement. "This marks another milestone for the organic food market."

Consumers are using various strategies to continue to buy organic products while still economizing. Because most venues now offer organic products, consumers have the opportunity to shop around. Increased use of coupons, the proliferation of store-branded organics, and value-positioned products offered by major organic brands all have contributed to increased sales, Bushway said.

The introduction and aggressive marketing of high-quality retailer store brand organic products is leading to a change in consumer perceptions in a positive direction, according to forthcoming J.D. Power and Associates Private Label Industry Report. Organic store brand pricing is a strong motivator for consumers. But the quality and flavor of private label organic products drive the highest levels of positive sentiment, according to the Web-based content analysis study.

The OTA survey, conducted by Lieberman Research Group, measured the growth of U.S. sales of organic foods and beverages as well as non-food categories such as organic fibers, personal care products and pet foods during 2008. Results show organic food sales grew in 2008 by 15.8% to reach $22.9 billion, while organic non-food sales grew by 39.4% to reach $1.648 billion. As a result, organic food sales now account for approximately 3.5% of all food product sales in the U.S.

The OTA's findings concur with a similar study by Cone Inc. earlier this year. Boston-based Cone reported that 34% of U.S. consumers indicate they are more likely to buy environmentally responsible products, according to the 2009 Cone Consumer Environmental Survey. About 44% indicate their environmental shopping habits have not changed as a result of the economy. Fewer than one-in-10 (8%) say they are less likely to buy.