UK sales of organic products fell by 5.9 per cent to £1.73bn (€1.96bn) in 2010, according to the Organic Market Report published by the Soil Association, with the rate of decline slowing significantly throughout the year.
The Soil Association described the outlook for 2011 as "cautiously optimistic", with the report showing positive signs of resilience and recovery for the organic sector in general.
According to the report, 86 per cent of UK households now buy organic products, and fresh fruit and vegetables now account for 23.2 per cent of sales.
Although sales through the main retailers fell by 7.7 per cent, to £1.25bn (€1.41bn), Waitrose and Marks & Spencer anticipate modest growth for 2011.
Meanwhile, Tesco, Sainsbury's, Morrisons and the Co-operative predict level sales year on year.
Organically farmed land decreased by 0.6 per cent to 738,709ha and now represents 4.2 per cent of UK farmland.
Over the same period, the number of UK organic producers reportedly fell by 4.2 per cent to 7,567 in 2010, from a record high of 7,896 in 2009.
Roger Mortlock, deputy director of the Soil Association, commented: "There is powerful evidence that consumers who care about the diverse benefits of organic will stay loyal, even during these tough economic times. Given the current uncertainties in the UK and global economy, it would be rash to make any predictions for the future organic market. But the instability caused by climate change, population growth and resource depletion mean that business as usual in food and farming is not an option."
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