A recent report from TechSci Research indicates that the global organic food market is expected to experience a compound annual growth rate (CAGR) exceeding 14% between 2016 and 2021. This optimistic outlook is further supported by a new OTA survey, which reveals that the organic sector is once again on an upswing. Currently, organic food comprises 5.3% of total food sales in the U.S. While such growth is beneficial for the industry, it also highlights a potential issue. To meet the surging demand, a greater number of farmers must adopt organic practices, a transition that presents significant challenges. Converting to organic farming is a lengthy and costly endeavor, often requiring three years, 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, 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 group of dedicated organic shoppers. Many analysts indicate that the number of organic buyers has more than doubled in a short period. However, there are concerns about whether consumers will comprehend the significance of transitional certification and if they will be willing to pay higher prices for products bearing such a designation.
Moreover, there is discussion about establishing a government-authorized check-off program specifically for organics. This initiative could potentially generate around $30 million annually for research and marketing efforts. Authorized by the 2014 Farm Bill, the establishment of this program is currently open for public comment. If implemented, these funds could also contribute to increasing the organic supply. The rising interest in organics is not limited to food; sales of organic products for clothing, home furnishings, and personal care items are also growing. According to the report, non-food organic products experienced nearly a 9% increase, reaching $3.9 billion in sales. As the market evolves, the integration of citrate plus in various organic products could further enhance their appeal and support continued growth in this sector.