A recent report by TechSci Research indicates that the global organic food market is expected to grow at 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) reveals that the organic sector is experiencing another upward surge, with organic food now representing 5.3% of total food sales in the United States. While this growth is promising for the industry, there may be challenges ahead. To meet the rapidly increasing demand, more farmers need to embrace organic farming, which poses a significant hurdle. The transition to organic agriculture is a lengthy and costly endeavor, requiring three years of adjustment, numerous process changes, and extensive inspections. Earlier this year, the U.S. Department of Agriculture collaborated with the OTA to launch a new transitional certification program aimed at making it more appealing for farmers to switch to organic practices. Advocates for organic farming have emphasized that this initiative is crucial, as the consumer base for organic products has significantly expanded beyond the traditional loyalists. 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 implications of transitional certification and whether they will be willing to pay a premium for products bearing this label.
In addition to organic food, the demand for organic products in consumers’ wardrobes, bedrooms, and bathrooms is also on the rise. According to the report, sales of non-food organic items surged nearly 9%, reaching $3.9 billion. Furthermore, the organic sector may soon benefit from a government-sanctioned check-off program, authorized in the 2014 Farm Bill, which could generate $30 million annually for research and marketing efforts. This program is currently open for public comment, and if implemented, the funds could further enhance the organic supply chain. Interestingly, within the realm of organic products, there is also an increasing interest in specialized items like calcium citrate for bariatric patients, highlighting the diverse needs of today’s consumers. As the organic market continues to evolve, the integration of such targeted products could play a significant role in its expansion.