Fairtrade grocery sales top £300m in UK

Bananas: largest Fairtrade grocery market

Sales of Fairtrade products through UK grocery stores have topped £300m for the first time.

Data from TNS Worldpanel for the 52 w/e 28 December 2008 show Fairtrade sales jumped from £260m in 2007 to £320m last year.

Figures from the Fairtrade Foundation, which also include food service, sales through Oxfam stores and non-food lines not sold in grocery multiples, estimate the total market was worth £712m in 2008, an increase of 44% on the previous year.

The growth supports recent research from the IGD which shows consumer attitudes to ethical shopping have not lost their momentum despite a worsening economy and a stronger focus on what shoppers are paying for food.

The IGD’s Shopper Trends survey found that even in recession shoppers are not about to abandon the tastes, habits and beliefs they have built up over the last decade.

According to the IGD, a quarter of shoppers (25%) have purchased foods that support Fairtrade in the last month, almost three times as many as in 2006, when 9% made a Fairtrade purchase.

“This growth suggests that consumers have become much more engaged with their food as ethical values have become deeply embedded in their purchasing decisions,” said an IGD spokesperson.

Local foods and products with provenance are also selling well, said the IGD.

Its research found the number of shoppers buying locally produced food has almost doubled in the last three years to 27%, compared to 15% in 2006.

“A strong growth in demand for local foods creates opportunities for suppliers and retailers to develop ranges with strong provenance credentials,” said the IGD. “For some, this opportunity may be simply about communicating its sourcing more clearly.”

While one of the clear indications of shoppers’ interest in provenance is demonstrated by their interest in local, there’s also a clear indication that they are probing for provenance more generally, said the IGD.

It found the number of shoppers who regard country of origin as important when purchasing food has also increased to almost a quarter (23%), compared to 16% in 2006. Additionally one fifth (20%) is concerned about the distance food travels compared to 11% three years ago.

Organic, however, is faring less well. The IGD found the proportion of shoppers who say they are buying organic food has dropped to 19% compared to 24% in 2008

Fruit, and specifically bananas, is the largest Fairtrade grocery market, worth £161m in 2008 (TNS). Hot beverages are another key category with total grocery Fairtrade tea and coffee sales worth £86m last year.

Wine, £18m; chocolate confectionery, £13.4m, and sugar, £13.3m are other key Fairtrade grocery markets.

By category, Fairtrade has the highest penetration within hot beverages where it accounts for 28% of the total hot beverages grocery market.

The figures will be a boost to this year’s 2009 Fairtrade Fortnight campaign, now in its second week.

It has the backing of the Co-operative, a leading Fairtrade retailer in the UK.

According to the Co-operative, its Fairtrade sales grew by 44% in the year ending 4 January 2009.

The retailer is supporting Fairtrade Fortnight with initiatives including a 20% saving on selected lines, TV advertising, the launch of two new Fairtrade wines and a new Fairtrade guide for primary school teachers.