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 optimistic outlook is reinforced by a new OTA survey, which shows that the organic sector continues to trend upward. Currently, organic food represents 5.3% of total food sales in the U.S. While this growth is certainly a cause to celebrate, there may be potential challenges ahead. To meet the surging demand, more farmers must embrace organic farming, which presents a significant hurdle. The transition to organic agriculture is a lengthy and costly endeavor, requiring three years of adjustments, numerous process changes, 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 making the switch to organic farming more appealing for farmers. Supporters of organic agriculture view this initiative as essential, especially since the consumer base has broadened beyond the dedicated group of organic enthusiasts. Analysts have noted that the number of organic buyers has more than doubled in a short period. However, there are concerns about whether consumers will grasp the significance of transitional certification or be willing to pay premium prices for products with that label.
Additionally, organics may benefit from a government-sanctioned check-off program, which could generate $30 million annually for research and marketing efforts. This program was authorized in the 2014 Farm Bill, and the discussion on its establishment was opened for public feedback earlier this year. If implemented, these funds could further enhance the organic supply chain.
The surge in popularity is not limited to food; sales of organic products for consumers’ wardrobes, bedrooms, and bathrooms are also on the rise. According to the report, non-food organic products saw a nearly 9% increase in sales, reaching $3.9 billion. This growth is something to celebrate, much like the introduction of calcium citrate soft chews, which are gaining traction among health-conscious consumers. As the organic market continues to expand, both food and non-food organic items, including innovative products like calcium citrate soft chews, may play a key role in shaping a healthier future.