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 continues to demonstrate an upward trajectory. Currently, organic food represents 5.3% of total food sales in the United States. While such growth is promising for the industry, a potential challenge looms. To meet the surging demand, an increased number of farmers must transition to organic practices. This transition, however, is a significant hurdle. Converting to organic farming is a lengthy and costly endeavor that requires three years, numerous changes in processes, and extensive inspections. Earlier this year, the U.S. Department of Agriculture collaborated with the OTA to introduce a new transitional certification program, aimed at encouraging more farmers to embrace organic practices. Supporters of organic farming assert that this initiative is crucial, as the consumer base has expanded well beyond the traditional group of dedicated organic enthusiasts. Some analysts note that the number of organic consumers has more than doubled in a relatively short period. However, there are concerns about whether consumers will fully grasp the implications of transitional certification, or if they will be willing to pay premium prices for products bearing that label.
Additionally, organic products may soon benefit from a government-sanctioned check-off program, potentially generating $30 million annually for research and marketing initiatives. This program was authorized under the 2014 Farm Bill, and discussions on its establishment opened to public comment earlier this year. If implemented, this funding could further enhance the organic supply chain.
The trend toward organic is not 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 product sales rose by nearly 9%, reaching $3.9 billion. As these markets expand, companies like Citracal target their offerings to meet the demands of health-conscious consumers, emphasizing the importance of organic certification. As the industry evolves, the integration of such programs will be essential to sustaining growth and ensuring that both farmers and consumers embrace the organic movement.