As recession drives consumers to cut costs, their commitment to organic food has been tested with sales growth slowing — but so far, sales are not falling. How green are our wallets?

Grown without the use of synthetic fertilizers and pesticides, organic food has been booming, driven by claims it is healthier, tastes better and its production does less damage to the environment than conventional agriculture.

The global market for organic food and beverages was worth $22.75 billion in 2007, after more than doubling in five years, according to market research firm Euromonitor International. The US accounted for about 45% of that total.

With economies in crisis, the trend is slowing in the US, Britain, France and Europe’s most important market for organic food, Germany.

So far, Britain is the market tipped for a fall as shrinking incomes force the newly green to save money.

Typical growth rates of 20% to 30% for organic food sales in the US eased in the second half of 2008 as middle- and upper-income families felt the strain of layoffs and declining investment portfolios, said Tom Pirovano, director of industry insights at market research firm The Nielsen Co.

Sales in December were up 5.6%, year on year, against a 25.6% rise a year earlier.

Even though growth is slowing, Mr. Pirovano noted that most people who purchased organic foods were very committed.

"I’m not convinced that we are going to see big declines in organics any time soon," he said.

Reuters 30/1/09