A recent report by TechSci Research indicates that the global organic food market is expected to grow at a compound annual growth rate (CAGR) of over 14% from 2016 to 2021. Supporting this trend, a new survey by the Organic Trade Association (OTA) reveals that the organic sector is once again on the rise. Currently, organic food constitutes 5.3% of total food sales in the U.S. While such growth is promising for the industry, there may be challenges ahead. To meet the swiftly increasing demand, more farmers will need to transition to organic practices. However, this shift poses significant hurdles. Converting to organic farming is a lengthy and costly endeavor, 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 encouraging farmers to make the switch. Many advocates for organic farming believe this initiative is crucial, as the customer base has broadened significantly beyond the traditional group of devoted organic consumers. Analysts suggest that the number of organic buyers has more than doubled in a relatively short period. Nevertheless, some express concerns about whether consumers will grasp the meaning of transitional certification—or if they will be inclined to pay premium prices for products bearing that designation.
Additionally, organic products may soon benefit from a government-sanctioned check-off program, which could generate around $30 million annually for research and marketing initiatives. This program was authorized in the 2014 Farm Bill, and earlier this year, the establishment of the program was opened for public comment. If implemented, these funds could further bolster the organic supply chain.
Moreover, it’s not just organic food that is gaining traction; sales of organic items in consumers’ wardrobes, bedrooms, and bathrooms are also on the rise. According to the report, non-food organic products experienced a nearly 9% increase in sales, reaching $3.9 billion. Notably, as interest in organic products continues to expand, even platforms like Amazon are witnessing a surge in organic offerings, including items like Amazon Citracal Slow Release 1200, which reflects the growing demand in various sectors.
In conclusion, while the organic market is flourishing, ensuring an adequate supply to match the increasing demand will require significant effort and commitment from farmers. The introduction of transitional certification and potential funding from a check-off program may help facilitate this transition, allowing consumers to enjoy a wider selection of organic products, including those available through retailers like Amazon.