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Organic Food Retailing in the UK - Market Research Report (2015-2030)

Jakir Ahmed Jakir Ahmed London, United Kingdom Last Updated: August 2025 SIC SP0.371

Revenue

£1.7bn

2025-26

£1.7bn

Past 5-Year Growth

Profit

£XX.Xm

Employees

6,721

Businesses

879

Wages

£XXX.Xm

Organic Food Retailing in the UK industry analysis

Over the five years through 2025-26, revenue in the UK’s organic food retailing industry is expected to surge at a compound annual rate of 8.9%, reaching £1.7 billion. Revenue is forecast to climb by 9.6% in 2025-26, reflecting ongoing momentum even as broader grocery sales remain under pressure. Strong consumer appetite for health, sustainability and transparency has powered steady growth, even as the wider grocery sector battles tightening household budgets and surging costs. The organic sector continues to draw a loyal following. Home delivery and veg-box subscriptions are becoming more popular, while digital engagement is deepening, particularly among younger shoppers. Despite this, organic retailers face mounting price competition from supermarkets and discounters, making it harder to pass on rising costs and putting profitability under pressure.

Trends and Insights

  • Rising costs are squeezing organic retailers’ profit. Increased farm-gate prices, higher National Living Wage rates and elevated energy expenses have outpaced retailers’ ability to raise prices, forcing cost-saving measures and operational efficiency improvements.
  • Organic fruit and vegetables lead the market. Despite falling fresh produce spending, health and sustainability concerns keep organic fruit and veg sales strong, boosted by popular veg-box delivery schemes.
  • London is the prime location to set up shop. With the highest population density and disposable income per capita paired with the largest businesses, it’s a great place for organic food retailers to set up a base and attract custom.
  • The market is highly fragmented with low entry barriers. Thousands of small independent shops keep competition lively, but rising costs and supermarket pressure cause frequent closures and high churn among organic food retailers.
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Industry Statistics and Trends

Market size and recent performance (2015-2030)

Industry revenue has grown at a CAGR of 8.9 % over the past five years, to reach an estimated £1.7bn in 2025.

Trends and Insights

Rising wages and energy bills put intense pressure on organic food retailers’ profit

  • The costs for organic food retailers have risen sharply, with the National Living Wage jumping 6.7% to £12.21 per hour for workers aged 21 and over in April 2025. At the same time, farmers have increased prices to cover their rising costs, with organic farm-gate prices up 9.3% in 2023 and a further 6.1% in 2024, according to Defra in March 2025. These pressures make it much more expensive for organic food retailers to exist in the industry.
  • Additional trends and insights available with purchase
Organic Food Retailing in the UK
Revenue (2015-2030)
IBISWorld Logo Source: IBISWorld

Industry outlook (2025-2030)

Market size is projected to grow over the next five years.

Trends and Insights

Ethical values, eco-packaging and traceability set the pace for organic retail’s next chapter

  • Health, sustainability and animal welfare will remain key motivations for organic food shoppers. According to the Organic Research Centre’s Consumer Insights report, in January 2024, 73% of UK consumers now buy organic products to avoid chemicals and 69% are motivated by higher production standards. As these values continue to gain importance, organic retailers that invest in transparency and sustainability will attract a growing base of ethically minded and frequent shoppers.

Biggest companies in the Organic Food Retailing in the UK

Company
Market Share (%)
2026
Revenue (£m)
2026
Fresh & Wild Ltd
96.3
Abel & Cole Ltd
81.6
Riverford Organic Farmers Ltd
79.2

To view the market share and analysis for all 4 top companies in this industry, view purchase options.

Products & Services Segmentation

Organic Food Retailing in the UK
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Fruit, vegetables and salad, Convenience food and Canned and packaged goods. Fruit, vegetables and salad is the largest segment of the Organic Food Retailing in the UK.

Trends and Insights

Health trends and delivery services keep organic fruit and veg resilient

  • Organic fruit and vegetables are grown without using synthetic pesticides and fertilisers.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Organic food retailers sell organic food and beverages through bricks-and-mortar stores and online portals. They’re specialist natural and organic food retailers. Conventional supermarket chains and convenience stores that retail organic goods don’t fall under the industry.

What's included in this industry?

Products and services covered in the Organic Food Retailing industry in the United Kingdom include Fruit, vegetables and salad, Convenience food, Canned and packaged goods, Meat, poultry and fish, Beverages, Dairy, eggs and bakery goods and Baby food.

Companies

Companies covered in the Organic Food Retailing industry in the United Kingdom include Fresh & Wild Ltd, Abel & Cole Ltd and Riverford Organic Farmers Ltd.

Purchase this report to view all 4 major companies in this industry.

Related Terms

Related terms covered in the Organic Food Retailing industry in the United Kingdom include conversion, organic, own-label, box scheme, vegan and flexitarian.

Industry Code

SIC 2007

SIC 47.21 - Organic Food Retailing in the UK

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Rising costs are squeezing organic retailers’ profit. Increased farm-gate prices, higher National Living Wage rates and elevated energy expenses have outpaced retailers’ abil...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2015-2024) and forecast (2025-2030)
  • Employees, including historical (2015-2024) and forecast (2025-2030)
  • Businesses, including historical (2015-2024) and forecast (2025-2030)
  • Profit, including historical (2015-2025)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Organic fruit and vegetables lead the market. Despite falling fresh produce spending, health and sustainability concerns keep organic fruit and veg sales strong, boosted by p...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2025
  • Product innovation level

Charts

  • Products & services segmentation in 2025
  • Major market segmentation in 2025

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

London is the prime location to set up shop. With the highest population density and disposable income per capita paired with the largest businesses, it’s a great place for o...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2025

Tables

  • Number and share of establishments in each region in 2025
  • Number and share of revenue each region accounts for in 2025
  • Number and share of wages each region accounts for in 2025
  • Number and share of employees in each region in 2025

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

The market is highly fragmented with low entry barriers. Thousands of small independent shops keep competition lively, but rising costs and supermarket pressure cause frequen...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2020-2025
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

Fresh & Wild adds consumer favourites to its shelves. Shoppers snub premium supermarkets in favour of discounters as budgets tighten, leading the company to add family favour...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2021 through 2025
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2025
  • Overview of Fresh & Wild Ltd's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of Abel & Cole Ltd's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of Riverford Organic Farmers Ltd's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of revenue, market share and profit margin trend for one additional company

Detailed analysis

  • Description and key data for Fresh & Wild Ltd, and factors influencing its performance in the industry
  • Description and key data for Abel & Cole Ltd, and factors influencing its performance in the industry
  • Description and key data for Riverford Organic Farmers Ltd, and factors influencing its performance in the industry
  • Description, key data and performance trends for one additional company

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

Strict regulation governs organic food retail. Retailers must register and sell only certified organic products that meet rigorous safety, health and quality standards to avo...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2015-2030) 
  • Assistance historical data and forecast (2015-2030) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Rising costs are squeezing profit. Organic food retailers face higher farm-gate prices, wages and energy expenses, which have increased faster than prices charged to customer...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Investment vs. share of economy

Data tables

  • Liquidity Ratios (2019-2023)
  • Coverage Ratios (2019-2023)
  • Leverage Ratios  (2019-2023)
  • Operating Ratios (2019-2023)
  • Assets (2019-2023)
  • Liabilities (2019-2023)
  • Cash Flow & Debt Service Ratios (2015-2030)
  • Revenue per Employee (2015-2030)
  • Revenue per Enterprise (2015-2030)
  • Employees per Establishment (2015-2030)
  • Employees per Enterprise (2015-2030)
  • Average Wage (2015-2030)
  • Wages/Revenue (2015-2030)
  • Establishments per Enterprise (2015-2030)
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Organic Food Retailing industry in the United Kingdom in 2025?

The market size of the Organic Food Retailing industry in the United Kingdom is £1.7bn in 2025.

How many businesses are there in the Organic Food Retailing industry in the United Kingdom in 2025?

There are 879 businesses in the Organic Food Retailing industry in the United Kingdom, which has grown at a CAGR of 6.1 % between 2020 and 2025.

How may import tariffs affect the Organic Food Retailing industry in the United Kingdom?

The Organic Food Retailing industry in the United Kingdom is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.

How may export tariffs affect the Organic Food Retailing industry in the United Kingdom?

The Organic Food Retailing industry in the United Kingdom is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.

Has the Organic Food Retailing industry in the United Kingdom grown or declined over the past 5 years?

The market size of the Organic Food Retailing industry in the United Kingdom has been growing at a CAGR of 8.9 % between 2020 and 2025.

What is the forecast growth of the Organic Food Retailing industry in the United Kingdom over the next 5 years?

Over the next five years, the Organic Food Retailing industry in the United Kingdom is expected to grow.

What are the biggest companies in the Organic Food Retailing industry in the United Kingdom?

The biggest companies operating in the Organic Food Retailing industry in the United Kingdom are Fresh & Wild Ltd, Abel & Cole Ltd and Riverford Organic Farmers Ltd

What does the Organic Food Retailing industry in the United Kingdom include?

Fruit, vegetables and salad and Convenience food are part of the Organic Food Retailing industry in the United Kingdom.

Which companies have the highest market share in the Organic Food Retailing industry in the United Kingdom?

The company holding the most market share in the Organic Food Retailing industry in the United Kingdom is Fresh & Wild Ltd.

How competitive is the Organic Food Retailing industry in the United Kingdom?

The level of competition is moderate and steady in the Organic Food Retailing industry in the United Kingdom.

Methodology

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IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in the UK include:

  • Office for National Statistics
  • Office for Budget Responsibility
  • Bank of England

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

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