Small Businesses can benefit from the organic industry boom

19/03/2018
Small Businesses can benefit from the organic industry boom

Clean eating is proving to be more than just a buzzword. As more and more consumers seek out organic ingredients and brands that privilege provenance, it’s only natural that small businesses should seek secure exposure with large retailers.

The Soil Association’s recently released 2018 Organic Market Report reveals that the organic market in the UK is now worth more than ever – £2.2 billion. And, having grown by 6% in 2017, it’s the highest it’s been since the height of the recession in 2008 and now accounts for 1.5% of the total UK food and drink market. Supermarket sales in particular are booming – organic sales rose by 4.2% in 2017, while non-organic sales increased by just over 2%.

With 30% of all organic sales now taking place online or on the high street, it’s essential that smaller players within the organic market build and maintain both a strong e-commerce and bricks-and-mortar presence.

What organic products are in demand?

Key growth areas highlighted in the report included:

  • Chilled foods had impressive growth at 21% and now account for 3.4% of the total UK organic market
  • Dairy products have recorded an increase in sales of around 3%, and continue to have the highest share of the organic food and drink market at just over 28%
  • Organic wine is a strong growth area and sales of beers, wines and spirits increased by more than 8% last year
  • Beauty products are also thriving, and sales grew by 24% in 2017 totalling £75.9 million
  • Textiles have also recorded an increase in sales of 25%

Download a copy of the Organic Beauty & Wellbeing Report here

How do consumers want to shop for their organic items?
Online and high-street sales are the driving force behind the growth of the organic market, but home delivery also plays a significant part and accounts for almost 13% of the organic market. The home delivery model is a great fit for organic and, not surprisingly, we have seen a number of farm-to-front door box schemes launch in recent years – something that’s hugely important for consumers that are interested in the provenance of their food.

How Global Asset Finance Limited can help small business players
Global Asset Finance Limited are committed to helping small businesses access the working capital they need to grow and secure a strong presence within the burgeoning organic sector. However, even when SMEs secure space on a supermarket shelf or within an e-commerce site, large retailers can subject suppliers to lengthy payment terms. Selective invoice finance can help by bridging the gap between the date a small business raises an invoice and the date that they get paid.

With no hidden fees, no minimum commitment and no termination fee, selective invoice finance allows you to pick and choose the invoices you want funded.

And, unlike full-ledger factoring facilities, there is no contract tie-in, just pay-as-you-go finance that adheres to very simple day rate fees.

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