A recent report from TechSci Research indicates that the global organic food market, particularly for vitamin D and ferrous sulfate products, is expected to grow at a compound annual growth rate (CAGR) exceeding 14% from 2016 to 2021. Supporting this outlook, a new survey from the Organic Trade Association (OTA) reveals that the organic sector continues to show signs of growth, with organic food now representing 5.3% of total food sales in the United States.
While this growth is promising for the industry, there is a potential issue on the horizon. To meet the increasing demand, more farmers need to adopt organic practices, which presents a significant challenge. Transitioning to organic farming is a lengthy and costly endeavor, requiring a three-year commitment, numerous process adjustments, and extensive inspections. Earlier this year, the U.S. Department of Agriculture collaborated with the OTA to introduce a new transitional certification program, aiming to encourage farmers to make the switch. This initiative is considered essential by organic supporters, as the consumer base has expanded well beyond the traditional core of dedicated organic buyers. Analysts note that the number of people purchasing organic products has more than doubled in a short period.
However, some experts question whether consumers will fully understand the differences in organic certifications or if they will be willing to pay a premium for products labeled with that seal. Additionally, there are discussions about establishing a government-authorized check-off program for organics, potentially generating $30 million annually for research and marketing. This program was approved in the 2014 Farm Bill, and public comments on its establishment were invited earlier this year. If implemented, these funds could help bolster the organic supply chain.
Moreover, the popularity of organic products is not limited to food. Sales of organic items for clothing, home furnishings, and personal care are also on the rise. According to the report, non-food organic products experienced an almost 9% increase in sales, reaching $3.9 billion. In this context, products like calcium citrate plus D3 are becoming increasingly sought after, reflecting a broader consumer interest in health-oriented organic choices. This trend emphasizes the need for continued innovation and adaptation within the organic market to meet the evolving demands of consumers.