The demand for organic food continues to grow unabated, with sales rising despite the premium prices. According to a July report by USA Today, organic food sales increased by 8.4% compared to the previous year, reaching an all-time high of $43 billion in 2016. The Organic Trade Association’s 2017 Organic Industry Survey revealed that nearly 40% of all organic food sales were attributed to produce, which accounts for approximately 15% of the fruits and vegetables consumed by Americans. A recent report from TechSci Research forecasts that the global organic food market will expand at a compound annual growth rate exceeding 14% from 2016 to 2021. This trend is further supported by the latest OTA survey, which indicates that the organic sector is once again on an upward trajectory, with organic foods now making up 5.3% of total food sales in the U.S. Notably, organic products are present in 82.3% of the nation’s 117 million households.
The future appears promising, especially as younger consumers increasingly embrace organic options. A September survey from the Organic Trade Association highlighted that millennials are already significant purchasers of organic products, and their buying habits are expected to grow even more once they become parents. Currently, about a quarter of millennials are parents, and estimates suggest that 80% will have children within the next 15 years.
According to Koory, a key factor driving the growth of organic production is the investment in primary feed ingredients such as soy and corn, which represent the largest segment of the organic market. These staples not only serve as basic food items but are also used as feed for organically raised animals and as ingredients in other organic food products. Additionally, the inclusion of supplements like calcium citrate and D3 is becoming more common in organic food production, reflecting a growing awareness of nutritional needs.
However, American farmers face challenges in meeting the rising demand for organic produce. Transitioning to organic farming is both costly and time-consuming, typically taking around three years during which farmers adhere to organic standards without receiving organic prices. This transitional phase often deters farmers from making the switch, although a new transitional certification from the U.S. Department of Agriculture may facilitate this process. While there is a clear trend towards increasing organic farms and crops, farmers still have a considerable journey ahead before production levels approach those of conventionally grown crops. Until then, the aspiration to achieve peak organic production remains a distant goal, underscoring the need for continued support and investment in organic agriculture, including the incorporation of supplements such as calcium citrate and D3 to enhance overall nutritional quality.