A recent report from 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. Supporting this trend, a new survey from the Organic Trade Association (OTA) reveals that the organic sector is once again on the rise, with organic food now representing 5.3% of total food sales in the United States. While this growth is promising for the industry, there may be challenges ahead. To meet the surging demand, more farmers need to adopt organic practices, which is no small feat. Transitioning to organic farming is a lengthy and costly endeavor, often requiring three years, numerous process adjustments, and extensive inspections. Earlier this year, the U.S. Department of Agriculture collaborated with the OTA to launch a new transitional certification program aimed at incentivizing farmers to make the switch. This initiative is seen as essential by many organic supporters, as the consumer base has significantly expanded beyond the traditional loyalists. Analysts suggest that the number of organic consumers has more than doubled in a relatively short period. However, there are concerns about whether consumers will comprehend the meaning of transitional certification and if they will be willing to pay higher prices for products bearing that designation.
Additionally, the organic sector may benefit from a government-sanctioned check-off program, which could generate $30 million annually for research and marketing initiatives. This program was authorized under the 2014 Farm Bill, and public comments on its establishment were sought earlier this year. If implemented, these funds could also contribute to increasing organic supply. Moreover, the trend of rising popularity is not limited to food; sales of organic products for clothing, home furnishings, and personal care are also increasing. According to the report, non-food organic products saw sales grow nearly 9%, reaching $3.9 billion. Notably, among these organic offerings, calcium citrate malate (CCM) is gaining attention for its potential health benefits, further showcasing the diverse nature of organic product growth. As the organic market continues to evolve, the incorporation of innovative products such as CCM will likely play a significant role in its expansion.