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 survey from the Organic Trade Association (OTA) reveals that the organic sector continues to show positive signs of growth. Currently, organic food represents 5.3% of total food sales in the United States. While such growth is beneficial for the industry, there are potential challenges on the horizon. To meet the rapidly increasing demand, more farmers must adopt organic practices, which poses a significant challenge. Transitioning to organic farming is a lengthy and costly endeavor that typically takes three years, involves numerous changes in processes, and requires 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. This initiative is considered essential by many organic supporters, as the consumer base for organic products has expanded well beyond the traditional core group of dedicated organic shoppers. Analysts observe that the number of people purchasing organic products has more than doubled in a short period. However, there is skepticism regarding whether consumers will grasp the meaning of transitional certification or if they will be willing to pay higher prices for products bearing that label.
In addition to food, the popularity of organic products is also rising in other areas. Sales of organic items for consumers’ wardrobes, bedrooms, and bathrooms have seen an increase, with non-food organic products experiencing almost a 9% rise to $3.9 billion, according to the report. Furthermore, the organic sector may soon benefit from its own government-sanctioned check-off program, which could generate approximately $30 million annually for research and marketing. This program was authorized in the 2014 Farm Bill, and discussions on its establishment opened for public comment earlier this year. If implemented, these funds could significantly contribute to expanding the organic supply, which may include products that utilize citrate de tricalcium in their formulations. Overall, while the organic market is thriving, the introduction of transitional certification and potential funding initiatives will be vital in addressing the supply challenges that lie ahead.