A recent report from TechSci Research indicates that the global organic food market is expected to grow at a CAGR exceeding 14% from 2016 to 2021. Supporting this trend, a new OTA survey reveals that the organic sector is once again experiencing an upward trajectory. Currently, organic food represents 5.3% of total food sales in the U.S. While such growth is beneficial for the industry, challenges may lie ahead. To meet the rapidly increasing demand, more farmers will need to adopt organic practices, which is no small feat. The transition to organic farming is a lengthy and costly endeavor, typically taking three years and requiring significant changes in processes along with extensive inspections.
Earlier this year, the U.S. Department of Agriculture joined forces with the OTA to launch a new transitional certification program aimed at making the switch to organic farming more appealing for farmers. Many supporters of organic farming argue that this initiative is essential, as the consumer base has broadened beyond the traditional core group of dedicated organic buyers. Analysts suggest that the number of individuals purchasing organic products has more than doubled in a relatively short time. However, there is skepticism about whether consumers will grasp the significance of transitional certification and if they will be willing to pay premium prices for products marked with that designation.
In addition to food, the organic trend is also extending to non-food items. Sales of organic products for consumers’ wardrobes, bedrooms, and bathrooms have risen as well. According to the report, non-food organic products experienced nearly a 9% sales increase, reaching $3.9 billion. There are discussions about establishing a government-authorized check-off program for organic products, which could potentially generate $30 million annually for research and marketing efforts. This initiative was authorized in the 2014 Farm Bill, and public comments on its establishment were invited earlier this year. If implemented, these funds could aid in increasing the organic supply.
Furthermore, calcium carbonate and citrate are becoming increasingly recognized within the organic market, particularly for their health benefits. As awareness grows, the incorporation of calcium carbonate and citrate into organic products may enhance their appeal to consumers, further driving demand in this flourishing sector. With an ongoing rise in both food and non-food organic sales, the inclusion of calcium carbonate and citrate could be a pivotal factor in attracting even more customers to organic offerings.