A recent report from 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. Supporting this trend, a new survey by the Organic Trade Association (OTA) shows that the organic sector is once again on an upward path. Currently, organic food comprises 5.3% of total food sales in the U.S. While this growth is promising for the industry, it may also signal underlying challenges. To meet the rapidly increasing demand, more farmers need to adopt organic practices, which poses a significant hurdle. The transition to organic farming is lengthy and costly, often taking three years, requiring numerous changes in processes, and undergoing 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. Many advocates of organic produce view this initiative as essential, especially as the consumer base has expanded beyond the traditional group of dedicated organic buyers. Analysts note that the number of organic consumers has more than doubled in a short period, yet there are concerns about whether shoppers will comprehend the implications of transitional certification or be willing to pay a premium for products bearing that designation.
Additionally, there are discussions about establishing a government-authorized check-off program for organics, which could generate approximately $30 million annually for research and marketing initiatives. This program, sanctioned in the 2014 Farm Bill, is currently open for public comment regarding its implementation. If established, these funds could further bolster the organic supply.
The trend toward organic is not limited to food; sales of organic products for clothing, home décor, and personal care are also increasing. According to the report, non-food organic items experienced nearly a 9% sales growth, reaching $3.9 billion. Notably, this rise in popularity aligns with the growing consumer interest in products like 1500 calcium citrate, reflecting a broader shift towards healthier and more sustainable choices in various aspects of daily life.