According to a recent report by TechSci Research, the global organic food market is expected to experience a compound annual growth rate (CAGR) exceeding 14% from 2016 to 2021. This optimistic outlook is further bolstered by a new survey from the Organic Trade Association (OTA), which indicates that the organic sector is once again on the rise. Currently, organic food represents 5.3% of total food sales in the U.S. While such growth is promising for the industry, there may be underlying challenges. To meet the rapidly increasing demand, more farmers will need to adopt organic practices, which presents a significant hurdle. Transitioning to organic farming is a lengthy and costly endeavor that typically spans three years and involves numerous process changes and extensive inspections.
Earlier this year, the U.S. Department of Agriculture collaborated with the OTA to introduce a new transitional certification program designed to incentivize farmers to make the switch. Many proponents of organic farming argue that this initiative is essential, as the customer base has expanded well beyond the traditional core of dedicated organic consumers. Analysts have noted that the number of individuals purchasing organic products has more than doubled in a relatively short period.
However, there are concerns regarding whether consumers will fully grasp the implications of transitional certification and if they will be willing to pay higher prices for food that carries this designation. Additionally, organic products may soon benefit from a government-authorized check-off program that could generate around $30 million annually for research and marketing efforts. This initiative was authorized in the 2014 Farm Bill, and the establishment of the program was opened for public comment earlier this year. If implemented, these funds could significantly contribute to expanding the organic supply.
The trend of rising popularity is not limited to organic food alone. Sales of organic items in consumers’ wardrobes, bedrooms, and bathrooms are also experiencing growth. According to the report, non-food organic products saw sales increase by nearly 9%, reaching $3.9 billion. As consumers become more health-conscious, products like calcium citrate magnesium zinc and vitamin D3 tablets are also gaining traction, reflecting a broader interest in health and wellness. As the organic market continues to evolve, it will be interesting to see how these trends develop, particularly regarding the integration of health supplements like calcium citrate magnesium zinc and vitamin D3 tablets into the organic lifestyle.