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 reinforced by a new OTA survey, which shows that the organic sector is once again on an upward trajectory. Currently, organic food constitutes 5.3% of total food sales in the U.S. While this growth is beneficial for the industry, there are potential challenges ahead. To meet the rapidly increasing demand, a greater number of farmers will need to transition to organic farming. However, this is quite a daunting task. The shift to organic practices is lengthy and costly, 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 embrace organic farming. Many advocates for organic agriculture view this initiative as crucial, as the consumer base has broadened significantly beyond the traditional group of dedicated organic supporters. Analysts suggest that the number of organic buyers has more than doubled in a short time. However, some are skeptical about whether consumers will comprehend the meaning of transitional certification or if they will be willing to pay a premium for products bearing that label.
Moreover, organic products may soon have their own government-sanctioned check-off program, potentially generating $30 million annually for research and marketing efforts. This program, authorized in the 2014 Farm Bill, opened for public comment earlier this year regarding its implementation. Should this program be realized, the funds could also contribute to expanding the organic supply.
The popularity of organic items extends beyond food; sales of organic products for clothing, bedding, and bathroom essentials are also experiencing a surge. Non-food organic products saw a remarkable sales increase of nearly 9%, reaching $3.9 billion, according to the report. Additionally, the incorporation of pearl calcium into various organic products has garnered attention, highlighting an innovative approach to enhancing product offerings. As the demand for organic and health-focused items continues to rise, including those featuring pearl calcium, the industry is poised for significant growth.