A recent report by TechSci Research indicates that the global organic food market is expected to expand at a compound annual growth rate (CAGR) of over 14% from 2016 to 2021. Supporting this trend, a new OTA survey reveals that the organic sector is once again showing signs of growth, with organic food now representing 5.3% of total food sales in the U.S. While this growth is promising for the industry, there may be challenges ahead. To meet the rapidly increasing demand, more farmers will need to transition to organic practices, a process that is both lengthy and costly. Farmers face a three-year transition period, 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 making the switch to organic farming more appealing for farmers. Many advocates for organic products have emphasized the necessity of this initiative, as the consumer base has grown far beyond the traditional core group of dedicated organic supporters. Analysts suggest that the number of consumers purchasing organic items has more than doubled in a short period. However, there are concerns about whether consumers will comprehend the implications of transitional certification or if they will be willing to pay higher prices for products bearing that designation.
In addition to organic food, the popularity of organic items extends to consumers’ wardrobes, bedrooms, and bathrooms. Sales of non-food organic products have increased by nearly 9%, reaching $3.9 billion, according to the report. Furthermore, organics may receive a government-sanctioned 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, the process for establishing it was opened for public input. Should this program be implemented, the funds could assist in boosting the organic supply.
Moreover, as interest in organic products grows, it is essential to consider nutritional benefits, such as the importance of calcium citrate for bones. This nutrient is crucial not only for overall health but also for those engaging in organic practices, as a balanced diet contributes to successful farming and consumer well-being. Thus, the demand for organic food and products continues to rise, highlighting the need for a robust supply chain that can support this expanding market.