Inflation May Dampen the Growth of Organic and Sustainable Products

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First Insight's report found that 30% of US adults are cutting back on organic/premium foods due to rising costs.


The trend: Consumers want to buy sustainable products, such as Patagonia’s merchandise made from recycled materials and organic foods. And they’re willing to spend an additional 10% (or more) on those items, per a survey conducted by First Insight and the Baker Retailing Center at the Wharton School of the University of Pennsylvania.

  • Younger consumers are driving the trend, as 75% of Gen Z said sustainability is more important to them than brand.
  • Growing interest in sustainability helped propel US organic sales 12.4% in 2020 and another 2.3% in 2021, according to the Organic Trade Association’s Organic Industry Survey.
  • It is also helping attract investors’ funding. For example, recycled cotton fiber company Recover, which works with retailers such as Primark, Inditex, and Lands’ End, recently announced a $100 million funding round.

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