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 once again demonstrating an upward trajectory. In fact, organic food now constitutes 5.3% of total food sales in the United States. While this growth is beneficial for the industry, there may be challenges ahead. To meet the rapidly increasing demand, more farmers will need to adopt organic farming practices, which presents a significant hurdle. The transition to organic farming is a lengthy and costly endeavor, requiring three years of commitment, numerous changes in farming processes, and extensive inspections.
Earlier this year, the U.S. Department of Agriculture and the OTA collaborated on a new transitional certification program that aims to encourage farmers to make the switch to organic. This initiative is seen as essential by many organic supporters, as the consumer base has expanded significantly beyond the traditional core group of dedicated organic buyers. Analysts report that the number of consumers purchasing organic products has more than doubled in a short time. However, there are concerns about whether consumers will grasp the significance of transitional certification or if they will be willing to pay higher prices for products bearing that label.
Additionally, the organic sector may be on track to establish its own government-sanctioned check-off program, which could potentially generate $30 million annually for research and marketing efforts. Authorized by the 2014 Farm Bill, the establishment of this program was opened to public comments earlier this year. If successfully implemented, these funds could further bolster the organic supply chain.
The trend toward organic products extends beyond food; sales of organic goods for consumers’ wardrobes, bedrooms, and bathrooms are also increasing. According to the report, non-food organic products experienced nearly a 9% rise in sales, reaching $3.9 billion. Amidst this growth, products like Citracal Slow, which offer health benefits, may find an even larger audience as consumers increasingly seek out organic and natural options in various aspects of their lives. With the market expanding, the future of organic products, including Citracal Slow, looks promising.