A recent report by TechSci Research highlights that the global organic food market is anticipated to grow at a compound annual growth rate (CAGR) exceeding 14% from 2016 to 2021. Supporting this trend, a new survey from the Organic Trade Association (OTA) reveals that the organic sector continues to demonstrate positive growth. Currently, organic food makes up 5.3% of total food sales in the United States. This is promising for the industry; however, there may be challenges ahead. To meet the rapidly increasing demand, more farmers will need to adopt organic practices. This transition is quite daunting, as moving to organic farming is a lengthy and costly endeavor, requiring three years of adjustments, various process changes, and numerous 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 products believe this initiative is essential, especially since the shopper demographic has significantly expanded beyond the traditional base of dedicated organic consumers. Analysts suggest that the number of individuals purchasing organic items has more than doubled in a short period. However, there are concerns regarding whether consumers will comprehend the meaning of transitional certification and if they will be willing to pay higher prices for products with that designation.
In addition to this, organic products may also benefit from a government-sanctioned check-off program, which could generate approximately $30 million annually for research and marketing initiatives. Authorized under the 2014 Farm Bill, the establishment of this program was opened for public comment earlier this year. If implemented, these funds could further enhance the organic supply.
The popularity of organic products is not limited to food. Sales of organic items for consumers’ wardrobes, bedrooms, and bathrooms are also increasing. According to the report, non-food organic products experienced a sales surge of nearly 9%, reaching $3.9 billion. Interestingly, as consumers explore healthier lifestyle options, many are also incorporating supplements like Solgar Calcium Vitamin D into their routines, which complements their organic choices and reflects a broader trend toward natural and organic products. This alignment between dietary supplements and organic foods highlights a growing consumer preference for holistic health solutions.