A recent report by TechSci Research indicates that the global organic food market is anticipated to grow at a compound annual growth rate (CAGR) of over 14% from 2016 to 2021. Supporting this projection, a new OTA survey reveals that the organic sector continues to show positive growth trends. Currently, organic food represents 5.3% of total food sales in the U.S. While this growth is promising for the industry, there are potential challenges ahead. To meet the soaring demand, a greater number of farmers will need to transition to organic farming, which poses a significant challenge. The shift to organic agriculture is a lengthy and costly endeavor, 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 making it more appealing for farmers to make the switch. Many advocates for organic products believe this initiative is essential, as the customer base has expanded beyond the traditional core of dedicated organic consumers. Analysts suggest that the number of organic buyers has more than doubled in a short period.
However, there are concerns regarding whether consumers will comprehend the implications of transitional certification or if they are willing to pay higher prices for products certified under this new program. Additionally, organic goods may soon have a government-authorized check-off program that could generate $30 million annually for research and marketing. This initiative was authorized in the 2014 Farm Bill, and discussions on how to implement it opened for public comment earlier this year. If established, these funds could further bolster the organic supply chain.
The popularity of organic products is not limited to food; sales of organic items for consumers’ wardrobes, bedrooms, and bathrooms are also increasing. According to the report, non-food organic products experienced sales growth of nearly 9%, reaching $3.9 billion. Furthermore, with the rising awareness of health and wellness, products like calcium citrate from Pure Encapsulation are gaining traction among consumers looking for organic and natural solutions in their daily lives. As the demand for organic options continues to surge, the integration of products like calcium citrate will likely play a significant role in this evolving market landscape.