Industry Statistics and Projected Growth - Organic Trade Association

Industry Statistics and Projected Growth

The organic industry continues to grow worldwide. Here are some statistics regarding this burgeoning market.

U.S. sales of organic food and beverages have grown from $1 billion in 1990 to an estimated $20 billion in 2007, and are projected to reach nearly $23 billion in 2008. Organic food sales are anticipated to increase an average of 18 percent each year from 2007 to 2010.
Source: 2007 OTA Manufacturer Survey
Representing approximately 2.8 percent of overall food and beverage sales in 2006, this continues to be a fast growing sector, growing 20.9 percent in 2006.
Source: 2007 OTA Manufacturer Survey
Organic non-food sales grew 26 percent in 2006.
Source: 2007 OTA Manufacturer Survey
Total U.S. organic sales, including food and non-food products, were $17.7 billion in 2006, up 21 percent from 2005. They are estimated to have reached $21.2 billion in 2007, and are projected to surpass $25 billion in 2008.
Source: 2007 OTA Manufacturer Survey
Mass market grocery stores represent the largest single distribution channel, accounting for 38 percent of organic food sales in 2006. This is up from a 35 percent share of total sales in 2005. The natural food channel is still strong. The sales of larger grocery natural food stores combined with smaller independent natural food stores and chains accounts for 44 percent of organic food and beverage sales. Mass merchandisers and club stores, food service, internet/mail order and farmers’ markets represent 8 percent, 4 percent, 2.2 percent, and 2 percent of organic food sales, respectively.
Source: 2007 OTA Manufacturer Survey
Nearly 30.4 million hectares were managed organically by more than 700,000 farms in 138 countries in 2006, according to The World of Organic Agriculture: Statistics & Emerging Trends 2008 report released in February 2008 by the International Federation of Organic Agriculture Movements (IFOAM), The Foundation Ecology & Agriculture (SÖL), and the Research Institute of Organic Agriculture (FiBL). That figure represents 0.65 percent of the total agricultural land of the countries covered by the survey. As in previous years, Australia led with the most organic land (12.3 million hectares), followed by China (2.3 million hectares) and Argentina (2.2 million hectares). The United States was fourth, with 1.6 million hectares in 2005 (latest available statistics). The ten countries with the most organic land represented a combined total of nearly 24 million hectares, more than three quarters of the world’s organic land. Other countries in the top ten were Italy, Uruguay, Spain, Brazil, Germany, and the United Kingdom. Based on distribution by continent, Oceania led with 42 percent of organic area, followed by Europe (24 percent), Latin America (16 percent), Asia (20 percent), North America (7 percent), and Africa (1 percent). However, according to the report summary, the proportion of organically managed land to conventionally managed is highest in countries in Europe.
Source: The World of Organic Agriculture: Statistics & Emerging Trends 2008
Global demand for organic products continues to grow, with sales increasing by over $5 billion a year, according to The World of Organic Agriculture: Statistics & Emerging Trends 2008. It cited Organic Monitor estimates that international sales reached $38.6 billion dollars in 2006, double that in 2000. The most important import markets for organic products continue to be the European Union, the United States, and Japan.
Source: The World of Organic Agriculture: Statistics & Emerging Trends 2008
New research from The Natural Marketing Institute (NMI) released in 2008 reveals that consumers are increasingly incorporating organic into their lifestyles. Total household penetration across six product categories has risen from 57 percent in 2006 to 59 percent in 2007. The research also showed that the number of core users has increased from 16 percent in 2006 to 18 percent in 2007
Source: http://www.nmisolutions.com/
According to the National Restaurant Association’s 2007 Restaurant Industry Forecast, chefs ranked organic food as third on a list of the top 20 items for 2007. Also, more than half of fine-dining operators who serve organic food anticipated these items would represent a larger portion of sales in 2007. In addition, casual- and family-dining operators expected organic items to represent a larger proportion of their sales in 2007.
Source: National Restaurant Association’s 2007 Restaurant Industry Forecast

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