Industry Statistics and Projected Growth
The organic industry continues to grow worldwide. Here are some statistics regarding this burgeoning market.
Organic farming is practiced in approximately 100 countries throughout the world, with more than 24 million hectares (59 million acres) now under organic management. Australia leads with approximately 10 million hectares (24.6 million acres), followed by Argentina, with approximately 3 million hectares (7.4 million acres); both have extensive grazing land. Latin America has approximately 5.8 million hectares (14.3 million acres) under organic management, Europe has more than 5.5 million hectares (13.5 million acres), and North America has nearly 1.5 million hectares (3.7 million acres).
—The World of Organic Agriculture 2004-Statistics and Future Prospects, February 2004. www.soel.de/inahlte/publikationen/s/s_74.pdf.
The global market for organic food and drink reached $23 billion in 2002, according to Organic Monitor. Increasing demand in North America helped fuel the 10.1 percent increase, as North America overtook Europe as the largest market for organic food and drink. Continued growth is predicted for the global organic food industry, although at slower rates than in the past year.
—The Global Market for Organic Food & Drink, July 2003, Organic Monitor www.organicmonitor.com/700140.htm.
"Organic agriculture is expanding rapidly in the United States, as consumer interest continues to gather momentum and new organic production and marketing systems evolve. In the wake of USDA's implementation of national organic standards in October 2002, continued growth in the industry is expected. Similarly, consumer demand rose throughout the 1990s-20 percent or more annually-and that pace has continued. Organic products are now available in nearly 20,000 natural food stores and 73 percent of conventional grocery stores, and account for approximately 1-2 percent of total food sales in the U.S."
—Catherine Greene and Carolyn Dimitri, in Amber Waves, February 2003, USDA's Economic Research Service, www.ers.usda.gov/amberwaves/feb03/findings/organicagriculture.htm.
The Rodale Institute has set a goal of 100,000 certified organic U.S. farmers, representing five percent of the 2 million American farmers, by the year 2013, according to chairman Anthony Rodale in a talk at the Organic Trade Association's 2003 All Things Organic™ Conference and Trade Show in Austin, TX, in May 2003. Certified organic U.S. farmers now number approximately 12,200.
—The Rodale Institute, www.newfarm.org/news/050103/0528/100,000.shtml.
"Organic is a niche, but a very profitable niche. Give consumers what they truly want/need and they will dig deeply into their pockets. Organic dairy is mainstream. Two-thirds of the organic milk and cream is delivered to consumers via conventional supermarkets, not the 'health food stores' frequently associated with the organic of days gone by. Half of the organic cheese and yogurt sold in this country passes through a conventional supermarket. Organic is here to stay, not a fad marching by in the night. Several dairy companies have their arms around the organic segment of the business. Others will likely get involved. Whether you opt in or not, it certainly is a category worth watching. It gives us one more window into the minds of consumers."
—Jerry Dryer, J/D/G Consulting, in "Organic Lessons," Prepared Foods, January 2003 www.preparedfoods.com/archives/2003/2003_1/0103organic.htm.
Thirty-nine percent of the U.S. population uses organic products. U.S. organic consumers can be categorized in three segments:
- The Organic Integrated Group (37 percent of all organic users) consumes organic products more than once a day.
- The Organic Middle Group (39 percent of all organic users) consumes organic products at least weekly.
- The Organic Fringe Group (24 percent of all organic users) eats organic products occasionally.
—The 2002 Organic Consumer Trends Report, produced by The Natural Marketing Institute (NMI) and SPINS, October 2002, www.nmisolutions.com/r_organic.html.
The importance of organic products in the marketplace will continue to grow with national organic standards in place, but challenges remain. "Across a variety of criteria regarding the understanding of organics, 48 percent of consumers seem to have a firm grasp of the true meaning. Additionally, and much more concerning, is the low recognition of the perceived product benefits that are derived from organics, including taste, nutritional benefits, and others. Although the recent USDA label initiatives will provide awareness and credibility to the industry, marketers will need to take responsibility of communicating these key benefits of organic products to consumers," according to Natural Marketing Institute Managing Partner Steve French.
—The 2002 Organic Consumer Trends Report, produced by The Natural Marketing Institute (NMI) and SPINS, October 2002, www.nmisolutions.com/r_organic.html.
An online poll of 1,000 U.S. households conducted during the week of Nov. 4, 2002, found that 58 percent had purchased a food item labeled organic. Of those participating, 32 percent said it was somewhat or very important that their food is organic, while 67 percent indicated organic food would become more common in the future. The majority of those buying organic products purchased them from their local grocer or a traditional supermarket chain, 29 percent cited a farmers' market as the source, and 21 percent bought organic products at a specialty grocer such as Whole Foods Market or Wild Oats. Also, 14 percent indicated they bought organic items at their local Wal-Mart or Target super center, reinforcing the fact that organic foods play a role in everyday American households. Twenty percent said they would pay approximately 20 percent more for organic foods, while 67 percent said that price was a barrier to their buying these products.
—eBrain Market Research, http://www.ebrain.org/.
Headquarters: 60 Wells Street, P.O. Box 547, Greenfield, MA 01302 USA ( (413) 774-7511
Fax: (413) 774-6432 ( e-mail: info@ota.com ( web site: http://www.ota.com/
Legislative Office: 600 Cameron Street, Alexandria, VA 22304 USA ( (202) 338-2900
