A recent report by 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) shows that the organic sector is once again on the rise, with organic food now making up 5.3% of total food sales in the United States. 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 practices, a process that is both lengthy and costly, 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 new transitional certification program, which aims to incentivize farmers to switch to organic farming. This initiative is seen as crucial by organic supporters, particularly as the consumer base has expanded well beyond the traditional group of dedicated organic buyers. Analysts suggest that the number of organic consumers has more than doubled in a relatively short period. However, there are concerns about whether consumers will grasp the significance of transitional certification or be willing to pay higher prices for products labeled with that certification.
Additionally, the organic sector may soon benefit from a government-sanctioned check-off program, which could generate $30 million annually for research and marketing. This program was approved in the 2014 Farm Bill, and public comments on its establishment were solicited earlier this year. If implemented, these funds could significantly enhance the organic supply chain.
The popularity of organic products is not limited to food; sales of organic items for clothing, home furnishings, and personal care are also rising. According to the report, non-food organic products experienced an increase of nearly 9%, reaching $3.9 billion. This growth reflects a broader trend towards organic living, which might influence consumer decisions, including the willingness to pay for premium items, such as those at ccm tablet prices. As the organic market continues to evolve, the integration of these products into everyday life may pave the way for further expansion.