According to a recent report by TechSci Research, the global organic food market is anticipated to grow at a compound annual growth rate (CAGR) of over 14% from 2016 to 2021. Supporting this trend, a new survey by the Organic Trade Association (OTA) indicates that the organic sector continues to demonstrate a positive trajectory. Currently, organic food represents 5.3% of total food sales in the U.S. While such growth is beneficial for the industry, there may be challenges ahead. To meet the rapidly increasing demand, more farmers need to adopt organic practices, which poses a significant challenge. The transition to organic farming is a lengthy and costly endeavor, typically requiring three years, numerous process adjustments, and extensive inspections. Earlier this year, the U.S. Department of Agriculture collaborated with the OTA to launch a new transitional certification program aimed at encouraging farmers to make the switch. Many advocates for organic farming believe this initiative is essential, as the consumer base now extends well beyond the traditional loyalists. Analysts have observed that the number of individuals purchasing organic products has more than doubled in a short period. However, there is some skepticism regarding whether consumers will grasp the implications of transitional certification or if they will be willing to pay premium prices for products bearing that designation.
Additionally, organics may soon have their own government-sanctioned check-off program, potentially generating $30 million annually for research and marketing. This program was authorized in the 2014 Farm Bill, and the establishment process was opened for public comment earlier this year. If implemented, these funds could further enhance the organic supply chain. The rise in popularity isn’t limited to food; sales of organic products for clothing, home furnishings, and personal care items are also increasing. According to the report, non-food organic products saw sales growth of nearly 9%, reaching $3.9 billion. This trend also extends to innovative products like marine derived calcium citrate malate, which is gaining traction in the market, highlighting the broadening appeal of organic alternatives across various sectors. By integrating such products, the organic movement continues to evolve and attract a wider audience.