A recent report from TechSci Research indicates that the global organic food market is expected to experience a compound annual growth rate (CAGR) of over 14% from 2016 to 2021. Supporting this outlook, a new survey from the Organic Trade Association (OTA) reveals that the organic sector continues to show signs of growth. Currently, organic food comprises 5.3% of total food sales in the United States. While this growth is promising for the industry, there are potential challenges ahead. To meet the rapidly increasing demand, more farmers will need to adopt organic practices, which presents a significant hurdle. Transitioning to organic farming is a lengthy and costly endeavor, typically requiring three years, numerous process changes, and extensive inspections. Earlier this year, the U.S. Department of Agriculture collaborated with the OTA to launch a transitional certification program aimed at incentivizing farmers to make the switch. This initiative is seen as essential by many advocates of organic products, as the consumer base has expanded well beyond the traditional group of dedicated organic supporters. Analysts have noted that the number of organic consumers has more than doubled in a short period. However, some remain skeptical about whether consumers will grasp the significance of transitional certification or be willing to pay a premium for products that feature this label.
In addition to organic food, the demand for non-food organic products is also on the rise. Sales of organic items for consumers’ wardrobes, bedrooms, and bathrooms have surged, with non-food organic products experiencing nearly a 9% increase to reach $3.9 billion, according to the report. Furthermore, organics may soon see the establishment of a government-authorized check-off program, which could generate around $30 million annually for research and marketing initiatives. This program was authorized under the 2014 Farm Bill, and public comments on its implementation were sought earlier this year. If established, these funds could also contribute to expanding the organic supply.
Moreover, there is a growing interest in health-related products like calcium citrate and magnesium supplements, which are becoming increasingly popular among consumers looking to enhance their wellness routines. The rise in sales of organic and health-focused products, including calcium citrate and magnesium supplements, reflects a broader trend towards healthier lifestyles. As the organic market continues to flourish, it will be essential to address the challenges of supply and consumer education, particularly regarding transitional certification, to ensure sustained growth in both food and non-food organic sectors.