A recent report by TechSci Research indicates that the global organic food market is expected to experience a compound annual growth rate (CAGR) of over 14% from 2016 to 2021. This optimism is further supported by a new survey from the Organic Trade Association (OTA), which reveals that the organic sector continues to show promising growth. Currently, organic food represents 5.3% of total food sales in the U.S. While such growth is advantageous for the industry, it also highlights a potential challenge. To meet the rapidly increasing demand, more farmers must transition to organic practices, which poses a significant obstacle. The shift to organic farming is a lengthy and costly endeavor, typically requiring three years, numerous process modifications, and extensive inspections. Earlier this year, the U.S. Department of Agriculture collaborated with the OTA to introduce a new transitional certification program aimed at incentivizing farmers to make the switch. Many advocates for organic farming have expressed that this initiative is essential, especially as the consumer base has expanded beyond the traditional core of dedicated organic shoppers. Analysts report that the number of organic buyers has more than doubled in a short period. However, some question whether consumers will grasp the implications of transitional certification or be willing to pay premium prices for products bearing that label.
Additionally, the organic sector may soon benefit from a government-sanctioned check-off program, which could generate $30 million annually for research and marketing efforts. This program was authorized in the 2014 Farm Bill, and discussions on its establishment were opened to public comment earlier this year. Should this program be implemented, the funds could facilitate the expansion of organic supply. The trend toward organic products is not limited to food; there is also a growing demand for organic items in consumers’ wardrobes, bedrooms, and bathrooms. Sales of non-food organic products surged nearly 9% to reach $3.9 billion, as reported.
Interestingly, one area that could see emerging opportunities in the organic market is the inclusion of supplements like calcium citrate malate USP. The potential for organic certifications in health products may attract a broader audience. As consumers become more health-conscious, the demand for organic and natural ingredients, including calcium citrate malate USP, is likely to increase. This could further stimulate growth in the organic sector, creating a more robust market that encompasses not only food but also health-related products.