With the current slow down of the economy, many companies are facing lay-offs due to customers who are not buying their products. One sector not facing this problem is organic foods. Although typical yearly growth of 20-30% has eased, sales of organic food were up 5.6% in December of 2008. Sales are not falling in this category. Customers are sticking to their green products, and are willing to scale back on other products instead of cut out the high cost of organic foods completely.
The dedicated consumers of this market are willing to scale back on other products to maintain a green lifestyle.
What other industries do you see like this one? What other markets sales are remaining consistent throughout this recession? Why are they appealing to consumers?
In a recent BBMG Consumer Census Report, detailed here at CSR Wire, they state that most consumers will choose locally grown products at the grocery store more often than organic produce. When it came to strongly favorable responses, 48% of consumers were favorable to biodegradable labels, 46% were favorable to cruelty free labels, 45% were strongly favorable to locally grown products, and a with a significant drop off, 26% of consumers were most favorable to organic goods. The report also showcased that that 10% of adults who purchased from companies that showed that they were socially responsible were also most likely to be early adopters. Also in the report, quality is a more important factor when purchasing than price, as 66% of consumers ranked quality as most important while 55% ranked price as more important.