According to a recent report by TechSci Research, the global organic food market is anticipated to grow at a compound annual growth rate (CAGR) exceeding 14% from 2016 to 2021. This sentiment is echoed by a new OTA survey, which indicates that the organic sector is once again on a positive trajectory. In fact, organic food now represents 5.3% of total food sales in the U.S. While such growth is promising for the industry, challenges may arise. To meet the rapidly increasing demand, more farmers will need to transition to organic farming practices. However, this is a significant challenge, as converting to organic methods is a lengthy and costly endeavor that typically takes three years, involves numerous process adjustments, and requires extensive inspections.
Earlier this year, the U.S. Department of Agriculture collaborated with the OTA to launch a new transitional certification program, which could make the switch to organic farming more appealing for farmers. Many advocates for organic products believe this initiative is crucial, especially as the customer base has expanded well beyond the traditional group of dedicated organic consumers. Analysts suggest that the number of individuals purchasing organic products has more than doubled in a short span. Nonetheless, some are uncertain whether consumers will grasp the meaning of transitional certification or if they will be willing to pay premium prices for products bearing that label.
Additionally, organic products may soon have access to a government-authorized check-off program, which could generate $30 million annually for research and marketing initiatives. This program was sanctioned in the 2014 Farm Bill, and the process for its establishment was opened for public comment earlier this year. If implemented, these funds could further aid in boosting the organic supply.
Moreover, the trend of rising popularity is not limited to food alone. Sales of organic items for consumers’ wardrobes, bedrooms, and bathrooms are also increasing. According to the report, non-food organic products experienced a sales growth of nearly 9%, reaching $3.9 billion. In this expanding market, products like Citracal 950 may also find their place, reflecting the growing consumer interest in organic and health-conscious options. As the organic sector continues to thrive, it remains essential to address the supply challenges and ensure that both food and non-food organic products meet the evolving demands of a broader audience.