The economic downturn will not hit sales of ethical or environmentally-friendly food products, UK retailer The Co-operative Group has insisted.

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Industry watchers and economic commentators claim a decline in consumer confidence and greater concern over spending will dent sales of organic or Fairtrade products, which command a price premium but demand for which have soared in recent years.


Such a trend would hit retailers like the Co-op, which has invested heavily in expanding its lines of ethical or green products.


However, Chris Shearlock, environment manager at the Co-op, said yesterday (8 July) in London that he was “reasonably optimistic” that the market for such products would withstand any economic storm.


“Ethical consumerism is more deep-lying than it was 15 years ago, more people want to do it, the awareness of the issues around ethical consumerism has grown and the range available is better,” Shearlock said. “I’m reasonably optimistic that it is not about to all fall apart around us.”

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Shearlock was upbeat about the market for ethical products. He pointed to the fact that only 5% of household expenditure is spent on products like Fairtrade tea or cotton, despite the fact that, in surveys, “some 20-30%” of consumers claim to buy ethical products.


According to figures from the Co-op, the overall ethical market in the UK is now worth GBP32.3bn (US$63.9bn). Ethical food and drink sales are worth GBP4.8bn, according to the Co-op’s Ethical Consumerism Report 2007.


Food and drink manufacturers are becoming to bet big that the growth will continue. In February, Tate & Lyle announced it was to move its entire retail cane sugar range to Fairtrade.