The demand for organic food shows no signs of abating, with sales continuing to rise despite the higher costs. According to a report by USA Today in July, organic food sales increased by 8.4% compared to the previous year, reaching a record high of $43 billion in 2016. The Organic Trade Association’s 2017 Organic Industry Survey revealed that approximately 40% of all organic food sales were in the produce category, which accounts for about 15% of all fruits and vegetables consumed by Americans. A recent TechSci Research report forecasts that the global organic food market will grow at a compound annual growth rate of over 14% from 2016 to 2021. The new OTA survey corroborates this trend, showing that the organic sector is once again on the rise, now representing 5.3% of total food sales in the U.S. Organic foods are present in 82.3% of the nation’s 117 million households.
The future appears promising, especially as younger consumers increasingly embrace organic products. A September survey from the Organic Trade Association indicated that millennials are already significant buyers of organic goods and are expected to purchase even more once they become parents. Currently, a quarter of millennials are parents, but estimates suggest that 80% of them will have children within the next 15 years. Koory mentioned to Food Navigator-USA that a major contributor to the growth in organic production is the investment in “primary feed ingredients of soy and corn,” which constitute the largest segment of the organic market. These staples not only serve as basic food items but are also used as feed for organically raised animals and incorporated into other organic food products.
However, American farmers are struggling to keep pace with the rising demand for organic produce. Transitioning to organic farming is both costly and time-consuming, often taking around three years. During this transition phase, farmers adhere to organic standards but do not receive organic prices, which can deter them from making the switch. Nevertheless, a new transitional certification from the U.S. Department of Agriculture may facilitate this process. While the trend is clearly moving toward an increase in organic farms and crops, farmers have a significant distance to cover before organic production levels reach those of conventionally grown crops. Until that time, the aspiration to achieve peak organic production remains an ongoing challenge.
In relation to the broader market, the growth of organic food consumption can be likened to a “citracal equivalent” in the emphasis on health and wellness among consumers. As organic food becomes more integrated into daily diets, its appeal continues to rise, highlighting the importance of aligning agricultural practices with consumer preferences. As the organic market expands, the “citracal equivalent” of health-focused choices will undoubtedly play a crucial role in shaping future agricultural landscapes and food consumption trends.