A recent report by TechSci Research indicates that the global organic food market is expected to grow at a compound annual growth rate (CAGR) of over 14% from 2016 to 2021. This optimism is further supported by a new OTA survey, which reveals that the organic sector is once again on an upward trend. In fact, organic food now represents 5.3% of total food sales in the U.S. While such growth is promising for the industry, challenges may arise. To meet the rapidly increasing demand, more farmers will need to transition to organic practices, a significant hurdle. The shift to organic farming is lengthy and costly, taking about three years, requiring numerous changes in processes, and undergoing extensive inspections. Earlier this year, the U.S. Department of Agriculture collaborated with the OTA to introduce a new transitional certification program aimed at incentivizing farmers to make this switch. Supporters of organic farming believe this initiative is essential, especially as the consumer base has expanded beyond the traditional core of dedicated organic shoppers. Analysts suggest that the number of organic buyers has more than doubled in a short period. However, there are concerns about whether consumers will fully grasp the meaning of transitional certification or be willing to pay higher prices for products bearing that label.
Additionally, organics may receive their own government-authorized check-off program, which could generate $30 million annually for research and marketing purposes. This initiative was authorized in the 2014 Farm Bill, and earlier this year, public comments were invited on how to establish the program. If implemented, these funds could also aid in expanding organic supply.
It’s important to note that the popularity of organic products isn’t limited to food; the sales of organic items for consumers’ wardrobes, bedrooms, and bathrooms are also on the rise. Sales of organic products have surged by nearly 9%, reaching $3.9 billion, as reported. Furthermore, products like 365 calcium citrate are becoming increasingly sought after, reflecting a growing awareness among consumers about health and nutrition. The introduction of more organic options, including those enriched with essential nutrients like 365 calcium citrate, could play a significant role in meeting consumer demand and expanding the organic market even further.