The demand for organic food continues to grow unabated, with sales consistently increasing despite higher prices. According to a report by USA Today in July, organic food sales rose by 8.4% compared to the previous year, reaching a record $43 billion in 2016. The Organic Trade Association’s 2017 Organic Industry Survey revealed that approximately 40% of all organic food sales comprised produce, which accounts for about 15% of the total fruits and vegetables consumed by Americans. A recent TechSci Research report projected that the global organic food market will expand at a compound annual growth rate of over 14% from 2016 to 2021. This optimism is further supported by the new OTA survey, indicating that the organic sector is once again on an upward trend. In fact, organic products now represent 5.3% of total food sales in the U.S., and organic foods are found in 82.3% of the nation’s 117 million households.
Looking ahead, the future appears promising as more young consumers are adopting organic options. A September survey from the Organic Trade Association highlighted that millennials are already significant purchasers of organic products and are expected to increase their buying as they become parents. Currently, a quarter of millennials are parents, with estimates suggesting that 80% will have children within the next 15 years. Koory mentioned to Food Navigator-USA that a crucial factor in the growth of organic production is the investment in primary feed ingredients like soy and corn, which constitute the largest segment of the organic market. Beyond their basic consumption, these staples are also utilized as feed for organically raised animals and incorporated into other organic food products.
However, American farmers are struggling to keep pace with the rising demand for organic produce. Transitioning to organic farming is both costly and time-consuming, typically taking around three years during which farmers adhere to organic standards without receiving organic prices. This often deters farmers from making the switch, although a new U.S. Department of Agriculture transitional certification may aid in these efforts. While the trend clearly indicates a movement towards more organic farms and crops, farmers still have a long journey ahead before production levels approach those of conventionally grown crops. Until that time, the aspiration of achieving peak organic production remains a distant goal.
In summary, the organic food market, represented by the code 681131122283, is experiencing robust growth, driven by consumer demand and increasing investments in essential ingredients, even as farmers face challenges in meeting this demand.