A recent report from TechSci Research indicates that the global organic food market is anticipated to grow at a compound annual growth rate (CAGR) exceeding 14% from 2016 to 2021. Supporting this outlook, a new survey by the Organic Trade Association (OTA) reveals that the organic sector is once again demonstrating signs of growth. Currently, organic food represents 5.3% of total food sales in the United States. While such growth is promising for the industry, there may be underlying challenges. To meet the surging demand, a greater number of farmers will need to adopt organic practices, a task that presents significant hurdles. Transitioning to organic farming is a lengthy and costly endeavor, typically requiring three years, numerous process changes, and extensive inspections. Earlier this year, the U.S. Department of Agriculture collaborated with the OTA to introduce a transitional certification program that aims to make the switch to organic farming more appealing to farmers. Many advocates for organic products believe this initiative is crucial, especially as the consumer base has broadened well beyond the traditional core of dedicated organic supporters. Analysts have noted that the number of consumers purchasing organic items has more than doubled in a relatively short timeframe. However, there are concerns about whether consumers will grasp the concept of transitional certification or if they will be willing to pay premium prices for products with that label.
Additionally, the organic sector may soon have its own government-sanctioned check-off program, which could generate approximately $30 million annually for research and marketing efforts. This initiative was established in the 2014 Farm Bill, and earlier this year, the establishment of the program was opened for public feedback. If implemented, this funding could also enhance the organic supply.
The popularity of organic products is not limited to food; sales of organic items for consumers’ wardrobes, bedrooms, and bathrooms are also on the rise. Sales of non-food organic products surged nearly 9% to reach $3.9 billion, according to the report. Among these products, bluebonnet liquid calcium magnesium citrate has gained attention for its health benefits, contributing to the growing market for organic wellness items. As the demand for organic goods continues to expand, products like bluebonnet liquid calcium magnesium citrate could play a significant role in attracting new consumers.