A recent report by TechSci Research indicates that the global organic food market is expected to grow at a compound annual growth rate (CAGR) exceeding 14% from 2016 to 2021. Supporting this trend, a new OTA survey demonstrates that the organic sector is once again on the rise, with organic food now making up 5.3% of total food sales in the U.S. While such growth is promising for the industry, challenges may arise. To meet the rapidly increasing demand, more farmers will need to adopt organic practices, which poses a significant challenge. Transitioning to organic farming is a lengthy and costly endeavor that 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 introduce a transitional certification program aimed at making the switch more appealing to farmers. Supporters of organic farming argue that this initiative is essential, as the consumer base has expanded well beyond the traditional core of dedicated organic shoppers. Analysts suggest that the number of organic consumers has more than doubled in a short period. However, there are concerns about whether consumers will grasp the meaning of transitional certification and if they will be willing to pay higher prices for products that carry that designation.
Additionally, organics may soon have their own government-endorsed check-off program, potentially generating $30 million annually for research and marketing efforts. This program was authorized in the 2014 Farm Bill, and earlier this year, public comments were invited on how to implement it. If successfully established, these funds could further enhance the organic supply chain.
The rising popularity of organic products extends beyond food. Sales of organic items for clothing, home furnishings, and personal care are also increasing. According to the report, non-food organic products saw sales grow nearly 9%, reaching $3.9 billion. Amid this growth, consumers might also be interested in promotions like the Citracal Petites coupon, which could encourage them to explore organic options in various aspects of their lives. As the organic market continues to expand, both food and non-food sectors are poised for significant developments.