Thursday, November 6, 2008

Will A Declining Economy Cause Organic Companies to Suffer?

"According to Nielsen, sales volume of organic and natural products were recently growing at 20 percent a year. But as the economy declines, it seems consumers are bypassing organics, which typically cost twice as much as the conventional stuff, New York Times reports.

For the four-week period that ended Oct. 4, Nielsen Company reported that organic product’s sales volume rose only four percent compared with the same period last year. In addition, a survey of 1,000 consumers conducted by Information Resources earlier this year showed that nearly half of respondents said they were purchasing fewer organic products because they were too expensive."

Read the article