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 conducted by the Organic Trade Association (OTA) reveals that the organic sector is once again on the rise. Currently, organic food comprises 5.3% of total food sales in the U.S. While this growth is promising for the industry, there are potential challenges ahead. To meet the surging demand, more farmers will need to transition to organic farming practices, which presents a significant hurdle. The process of converting to organic farming is lengthy and costly, often taking three years, requiring numerous changes in processes, and undergoing 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 to organic. This initiative is deemed essential by many organic supporters, as the consumer base has significantly broadened beyond the traditional group of dedicated organic buyers. Analysts have noted that the number of organic consumers has more than doubled in a short span. However, some remain skeptical about whether consumers will grasp the meaning of transitional certification or be willing to pay higher prices for products labeled with that seal.
In addition to food, the organic trend is also impacting non-food items. Sales of organic products for consumers’ wardrobes, bedrooms, and bathrooms are climbing, with non-food organic sales increasing by nearly 9% to reach $3.9 billion, according to the report. Furthermore, organics may soon benefit from a government-sanctioned check-off program, which could generate approximately $30 million annually for research and marketing efforts. This program was authorized in the 2014 Farm Bill, and public comments on its establishment were solicited earlier this year. If implemented, these funds could significantly aid in expanding the organic supply.
Amidst this organic growth, it’s worth noting the rising interest in specific health supplements, such as cissus quadrangularis, calcium citrate, and vitamin D3, which have gained popularity among health-conscious consumers. As the organic movement continues to flourish, the integration of these health products into the market could provide additional avenues for growth. Overall, the organic sector is poised for substantial expansion, but it will require a concerted effort to address the challenges of supply and consumer education.