A recent report from TechSci Research indicates that the global organic food market is expected to experience 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) reveals that the organic sector is once again on the rise. In fact, organic food now represents 5.3% of total food sales in the United States. While this growth is promising for the industry, there may be underlying challenges. To meet the surging demand, more farmers must transition to organic practices, a process that is both lengthy and costly. Transitioning to organic farming typically requires three years, numerous changes in processes, 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 shift to organic methods. Many advocates for organic farming believe this initiative is essential, as the customer base has expanded well beyond the traditional group of staunch organic supporters. Analysts suggest that the number of consumers purchasing organic products has more than doubled in a short period. However, there are concerns about whether consumers will fully understand the implications of transitional certification or be willing to pay higher prices for products that carry that designation.
Additionally, there is a possibility of establishing a government-sanctioned check-off program for organic products, which could generate $30 million annually for research and marketing. This program was authorized in the 2014 Farm Bill, and earlier this year, the public was invited to comment on how to implement it. If realized, these funds could significantly aid in expanding the organic supply.
Moreover, the trend of rising popularity extends beyond food. Sales of organic products for consumers’ wardrobes, bedrooms, and bathrooms are also increasing. Non-food organic items witnessed a sales growth of nearly 9%, reaching $3.9 billion, according to the report. In light of this growth, consumers are also showing interest in health supplements such as calcium citrate malate vitamin D3 & folic acid tablets, which align with the organic lifestyle. As both food and non-food organic products flourish, the demand for health-conscious items will likely continue to rise, further underscoring the interconnectedness of organic growth across various sectors.