Organic products – which are often priced at a premium over non-organic products – have taken a sales hit over the last 12 months as consumers have cut back discretionary spending, according to new analysis by Nielsen’s Director of Industry Insights, Tom Pirovano.  In March 2008, monthly sales of organic products grew 24 percent; a year later, growth almost came to a standstill of 1 percent, marking a dramatic shift from previous monthly growth rates of more than 30 percent seen in 2005 and 2006.
[click to enlarge graph]

“The recession and …

The troubled U.S. economy may be taking a toll on the growth of organic product sales, according to new data from Nielsen.
After several years of 20% to 30% sales growth, U.S. sales of organic products are showing the first signs of slowing.
While 52-week dollar sales of UPC-coded organics are up 21% vs. last year, the most recent four-week period ending October 4, 2008, shows growth of only 11.2%.  Last year, organics saw 27.1% sales growth during the comparable four-week period ending October 6, 2007.
Meanwhile, in Great Britain, organics sales growth has also slowed — to …

In the past four years, organic products have been one of the fastest growing market segments within the food industry, logging growth rates between 13% and 33%.
That trend may now be changing, according to Nielsen, which recently released data showing a slowdown in organic dollar sales and unit sales growth in the four weeks ending Sept. 6.
Dollar sales of organics grew by just 13%, while unit sales grew by 8% in the four weeks between August 9 and Sept. 6, according to Nielsen.  In contrast, dollar sales of organic products grew by …