The demand for organic food shows no signs of diminishing, with sales continuing to rise despite the higher price points. According to a report from USA Today in July, organic food sales increased by 8.4% compared to the previous year, reaching an all-time high of $43 billion in 2016. The Organic Trade Association’s 2017 Organic Industry Survey indicates that approximately 40% of all organic food sales are from produce, which accounts for about 15% of the total fruits and vegetables consumed by Americans.
Recent findings from TechSci Research project that the global organic food market will grow at a compound annual growth rate exceeding 14% from 2016 to 2021. This growth is further supported by the OTA survey, which shows that the organic sector is on an upward trajectory. Currently, organic products represent 5.3% of total food sales in the U.S., and organic foods are present in 82.3% of the country’s 117 million households.
The future looks promising as younger consumers increasingly embrace organic products. A survey conducted by the Organic Trade Association in September revealed that millennials are already significant purchasers of organic items and are expected to buy even more once they become parents. At present, one-quarter of millennials are parents, with estimates suggesting that 80% will have children in the next 15 years.
According to Koory’s insights shared with Food Navigator-USA, a key factor contributing to the growth in organic production is the investment in “primary feed ingredients such as soy and corn,” which represent the largest market segment within the organic sector. These staples are not only consumed in their basic forms but are also used to feed organically raised animals and incorporated as ingredients in other organic food products.
However, American farmers are struggling to keep pace with the rising demand for organic produce. Transitioning to organic farming is both costly and time-consuming, taking approximately three years during which farmers must adhere to organic standards without receiving organic prices. This often deters farmers from making the switch, although a new transitional certification from the U.S. Department of Agriculture may facilitate this process.
While the trend is clearly moving toward an increase in organic farms and crops, farmers still have a long way to go before production levels are comparable to those of conventionally grown crops. Until that goal of peak organic production is met, the market continues to evolve. Moreover, as consumers seek products enriched with essential nutrients, the inclusion of calcium citrate with vitamin D in organic offerings could further enhance the appeal of organic foods, promoting healthier choices among consumers and potentially driving even greater demand.