The Fairtrade Foundation said sales increased by 14% in 2020, the latest year when figures are available, adding that businesses are ramping up ethical commitments.
There was particular demand for Fairtrade products such as cocoa, bananas, wine, gold, and cosmetics, said the foundation.
Its report, published at the start of the annual Fairtrade Fortnight campaign, said two out of three people choose to buy Fairtrade products.
Major brands and retailers were said to continue backing the Fairtrade movement despite the impact of Brexit and ongoing pandemic-related challenges.
The foundation said its research indicated a clear desire among online shoppers to support brands that contribute to making the world a better place.
It also reported a boom in demand for beauty products.
Anna Barker of the Fairtrade Foundation said: “After the disappointment of Cop26, shoppers are increasingly looking to businesses to act on their ethical and social concerns.
“The pandemic combined with the increasing effect of climate change put pressure on low-income farmers around the world, and many fear being further marginalised by the economic downturn in months to come.
“Shoppers are turning up the heat to avoid businesses which fail to act on ethical or social concerns.
“They are looking for opportunities to positively influence change for the good of our climate in as many ways as possible. Companies must support consumers in making ethical purchasing decisions.”