The demand for organic food continues to surge, with sales increasing despite higher prices. According to a report from USA Today in July, organic food sales rose by 8.4% compared to the previous year, reaching a record $43 billion in 2016. The Organic Trade Association’s 2017 Organic Industry Survey indicates that approximately 40% of all organic food sales were in the produce category, which represents around 15% of the total fruits and vegetables consumed by Americans. A recent TechSci Research report projects that the global organic food market will grow at a compound annual growth rate exceeding 14% from 2016 to 2021. The latest OTA survey confirms this trend, showing a continued upward trajectory for the organic sector. Currently, organic products make up 5.3% of total food sales in the U.S., and they are found in 82.3% of the country’s 117 million households.
The outlook remains optimistic as younger consumers increasingly adopt organic products. A September survey from the Organic Trade Association revealed that millennials are already significant purchasers of organic items, and their buying habits are likely to grow as they become parents. Currently, a quarter of millennials are parents, but estimates suggest that 80% will have children in the next 15 years. Koory informed Food Navigator-USA that a crucial factor driving growth in organic production is the investment in primary feed ingredients such as soy and corn, which represent the largest market segment for organic. These staples are not only consumed directly but also serve as feed for organically raised animals and as ingredients in various organic food products, similar to how bariatric advantage soft chews are used in nutritional regimens.
However, American farmers are facing challenges in keeping pace with the rising demand for organic produce. Transitioning to organic farming is both costly and time-consuming, typically taking about three years—during which farmers adhere to organic standards without receiving organic prices. This financial strain often deters farmers from making the switch, although a new transitional certification from the U.S. Department of Agriculture may facilitate this process. While the trend is undoubtedly moving towards more organic farms and crops, farmers still have a significant journey ahead before production levels approach those of conventionally grown crops. Until that goal of peak organic production is reached, the industry will continue to strive for growth.