Figures released on Tuesday by the Soil Association show that the organic sector grew by 4% in 2014. This occurred in a year both food prices and food spending fell.

The boost in organic sales translates to shoppers spending an extra £1.4 million a week on organic products. In light of the increased spending, the sector is now worth over £1.86 billion, despite a 1.9% drop in food prices and a 1.1% drop in sales of food and drink overall.

Though the sector has returned to growth in recent years, it still pales in comparison to the organic markets of other large EU counties, including Germany’s which is worth around €6bn (£4.4bn).  

Back in Britain, dairy products and fresh fruit and vegetables remained the most popular organic purchases in 2014 (dairy products accounted for 27 percent of all organic sales). Again, online shopping and veg box schemes saw the largest amount of growth. Large independent retailers also did well.

Sales of organic eggs and poultry were up 15.8% and 8.2%, while non-organic sales dipped by 6.2% and 3.3% respectively. There were also sharp increases for a wide range of other products against a background of sliding non-organic sales including fresh fruit (up 6.4%), tea (up 13.7%), cereals (up 4.2%) and biscuits (up 7.2%). While sales of organic vegetables fell by 2%, but in a context in which non-organic sales plummeted at five times this rate.

However, despite the continued demand from UK consumers, figures from Defra show the area of land under organic management decreased in 2014. In June 2014 the UK’s organic land area was reported to be 575,349 ha amounting to 3.3% of the total agricultural land area. 4% of this was in conversion and the rest fully organic. The area of in-conversion land fell by 24% and fully organic land by 3.9% in 2013.

2014 also saw new research highlighting the higher profitability of farming organically, and higher-than-expected yield potential.  According to data from the government-funded Farm Business Survey, analysed by the Organic Research Centre and the Soil Association, the financial performance of organic farms outstripped that of comparable non-organic farms in the seven years from 2006 to 2013.  The figures suggest an average annual advantage of £26-82/ha for organic farmers over the period.

Liz Bowles, head of farming at the Soil Association, said; “These are positive times for the organic sector and we have good reason to believe current levels of market growth will be sustained in the long term. This is thanks to a combination of committed consumers who understand the benefits of organic farming for themselves and the environment, new CAP support for farmers, new research and product innovation, and favourable economic conditions.

“We are seeing once again that rewards are there for those that stick with organic, make great products and sell them well. The UK organic market is expected to grow steadily again in 2015 and should break the £2 billion barrier in 2016. 

“The reduction in land in conversion reflects years of uncertainty over the outcome of CAP reform. But the prospect of more generous than expected CAP payments from January 2016 in England, Scotland and Wales – coupled with a second consecutive year of market growth now confirmed – should encourage an expansion of organic production. But there are challenges at both ends of the supply chain. Increasing supply to meet increasing consumer demand without sucking in exports is key, but I am confident this can be achieved so long as major retailers and manufacturers send the market signals needed to build the confidence of farmers and growers.”