Organic food ingredient sales soar by 20%: EHL

05-Sep-2012 - Last updated on 14-Sep-2012 at 08:10 GMT

EHL's sales of organic ingredients have risen by 20% within the past five months

Ingredients supplier EHL Ingredients reports organic sales on track to reach £3M by January, after rising by 20% in the past five months.

The Stockport-based firm also predicted annual turnover would reach £5M by December 2012.

Tasneem Backhouse, sales director at EHL Ingredients, told FoodManufacture.co.uk the firm had seen a “steady growth since Easter”.

“This year sales have steadily increased. Easter was good, summer was great and, looking at orders placed, Christmas should continue at the same level.”

EHL stocks about 200 organic ingredients with dried fruit, lentils, seeds and peppers reporting the biggest sales. The ingredients are used mainly for ready meals, sauces and soups.

Increase

EHL said that “an awareness of healthy eating” and the “growing popularity of seeds and seasonal food tastes fuelled the increase in sales”.

“The most popular organic seed is sunflower, with poppy, lin, caraway and sesame also high in demand for their use in breads and as ‘on-the-go snack bags’. Summer has been good for BBQ blends, marinades and summer herbs, such as coriander and sage.”

The firm also predicted that, with more children being brought up on organic diets, popularity and sales should continue to grow.

"If children have grown up with organic food, that’s what their taste buds will like and their bodies be used to, so they will be much more likely to choose an organic diet as an adult,” said Backhouse.

"Great time to manufacture"

Market research firm Keynote predicted that the whole organic food market will experience a steady growth over the next five years, increasing by 11.8% between 2012 and 2016, to reach a total market value of £1.86bn.

EHL hoped sales of organic ingredients would climb by a further 10% in the next 12 months to reach £3M.

The firm added that it is a “great time” to manufacture organic foods and due to the “renewed increase in demand”.

“People are being recommended to try an organic diet by doctors and nutritionists, it’s quite a fashionable thing to do. This rise in popularity will see more demand for these products,” said Backhouse.

“It is a good time to manufacture organic foods either as an alternative, but also as a organic supplier.”

Top conventional seed sales