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Organic beats booze and fags

British consumers are spending more money on organic goods

British consumers are spending more money on organic goods

23rd November 2006

UK consumers are spending more money on ethical goods - such as organic food - than beer and cigarettes, a report has found.

The report, which was carried out by the Co-operative bank, shows that Brits spent £29.3bn on ethical products in 2005, compared with £28bn on tobacco and alcohol.

However, the Co-operative bank was quick to guard against complacency and cautioned against interpreting this growth as a sign that the "markets were capable of delivering sustainable solutions without intervention".

The figures show that ethical consumption jumped 11 per cent in 2005 from a year earlier.

Over the same 12-month period, total UK household expenditure increased by just 1.4 per cent.

Spending on ethical food - such as organic food, fairtrade goods and free-range eggs - grew 18 per cent to reach £5.4bn in 2005.

Green home expenditure - which includes energy-efficient electrical appliances, green mortgage repayments and green energy goods - increased from £3.8bn to £4.1bn in 2005.

Craig Shannon, from the Co-operative bank, said: "The fact that the value of ethical consumerism is now higher than the retail figures for cigarettes and beers is a milestone.

"However, total ethical spending is spread over a wide range of products and services, and in very few markets has it become the market norm.

"Overall, spend on ethical foods still only accounts for 5 per cent of the typical shopping basket."

The study was based on figures from the Office for National Statistics.



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