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Grocery Chains, Mass-Market Stores Gaining Ground In Organic Food Market

January 12, 2011: 03:40 AM EST

Noting that reports that organic product purchases are growing in the U.S. are “fallacious,” market research firm TABS Group says the proportion of American consumers buying organic products in 2010 was in the 38-39 percent range, the same percentage as in the prior two years. Though growth was flat, TABS found a shift in purchasing outlet patterns away from natural foods stores toward mass market stores. The “big winners” in organic product sales were traditional grocery chains and Target; losers were Walmart, Trader Joe's and natural foods retailers. Natural foods stores dropped nine percent from being the most preferred outlet. Fresh fruits remained the highest penetration category for organics at 27 percent of consumers, followed by fresh vegetables (26 percent), eggs (17 percent), and milk (16 percent).

Dr. Kurt Jetta, "Organic Product Consumer Base Holds Steady; Volume Shifting to Mass Market Retailers", News release, TABS Group, January 12, 2011, © Tabs Group
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