A recent report by TechSci Research indicates that the global organic food market is expected to grow at a compound annual growth rate (CAGR) exceeding 14% from 2016 to 2021. This sentiment is reinforced by a new OTA survey, which shows that the organic sector continues to demonstrate an upward trend. Currently, organic food constitutes 5.3% of total food sales in the U.S. While such growth is advantageous for the industry, it also raises concerns about potential challenges. To meet the rapidly increasing demand, more farmers must embrace organic farming methods. However, this transition is a significant hurdle, as converting to organic practices is a lengthy and costly endeavor that requires three years, numerous procedural adjustments, and extensive inspections. Earlier this year, the U.S. Department of Agriculture collaborated with the OTA to introduce a transitional certification program, which could incentivize farmers to make the shift. Many advocates of organic farming believe this initiative is essential, especially since the consumer base has expanded well beyond the traditional group of dedicated organic supporters. In fact, analysts report that the number of consumers purchasing organic products has more than doubled in a short time. However, there are doubts about whether consumers will fully grasp the implications of transitional certification or be willing to pay a premium for products bearing that label.
Additionally, organic products may soon benefit from a government-sanctioned check-off program, which could generate around $30 million annually for research and marketing initiatives. This program was authorized in the 2014 Farm Bill, and earlier this year, public comments were invited on how to implement it. If established, these funds could further boost organic supply.
The trend towards organic is not limited to food; sales of organic items for consumers’ wardrobes, bedrooms, and bathrooms are also experiencing growth. Non-food organic products witnessed nearly a 9% increase in sales, reaching $3.9 billion, according to the report.
In this context, it’s important to consider natural factors such as calcium citrate, which may also play a role in the overall health benefits associated with organic products. The integration of these elements into the organic market could further enhance consumer interest and trust in organic offerings. As the market continues to evolve, the significance of understanding these natural factors and their implications for both food and non-food organic products will be crucial for sustainable growth.