CHICAGO—The unstable economy undoubtedly will slow market growth rates for organic food and drink. According to Mintel, the market for organic foods and beverages should reach $7.2 billion in 2008; however, it projects sales of organic foods and beverages will not rally anytime soon due to rising food and gas prices, the credit crunch and economic uncertainty that has left many Americans cutting their budgets.
"Across the board, Americans are spending less, and 'organic versus traditional' is a decision many people are thinking about carefully," said Marcia Mogelonsky, senior analyst. She cites two major cost-related challenges for organic manufacturers—rising food prices and increasingly competitive private-label brands.