Organic beats beer and cigarettes

Ethical foods have seen a notable rise in popularity

Consumers are spending more on ethical products - such as organic food and green energy - than on beer and cigarettes, according to a report.

The amount spent on ethical products hit £29.3bn ($56.7bn) in 2005, the Co-operative bank said.

The increase compares with retail sales of £28bn for beer and cigarettes and "marks a milestone", said the Co-op bank's director of business.

Total "ethical spend" in 2005 grew by 11% on the year before, the bank said.

That compares with growth of just 1.4% in overall household expenditure.

Despite the rise, the proportion of ethical goods when viewed in the context of the typical shopping basket spend, remained small at 5%, the banks Ethical Consumerism report said.

Ethical food - which includes organic food and free-range eggs - saw a notable increase, rising 18% above 2004's level to reach £5.4bn.

Spending on energy efficient electrical items, such as wind turbines and other green energy goods, climbed from £3.8bn to £4.1bn in 2005.

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