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Organic Set To Take The US By Storm

by 5m Editor
23 July 2007, at 10:57am

SAN JOSE - The global organic foods & beverages market is projected to exceed US$86 billion by the year 2009, reflecting a CAGR of over 17% during the ten-year analysis period. The enduring health benefits offered by organic foods is expected to sustain the prosperity of the market into the distant future.

The global organic foods and beverages market is delivering strong double-digit annual growth as health and well-being moves up high on the consumer's priority list. Outbreak of recent food scares, rising awareness of the long-term health impact of pesticidal residues in food, unhealthy ingredients such as carbohydrates, fat, calories and hydrogenated oils, and use of genetically modified organisms (GMOs) in food products, among others, have all turned the spotlight on organic foods, which are today given the status of a health food. North America and Europe between them collar over 80% of the world market for organic foods and beverages.

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"Organic Foods & Beverages: A Global Strategic Business Report"


United States is the largest market for organic foods and beverages in the world and is projected to reach sales of over US$43 billion by the year 2010, as stated by Global Industry Analysts, Inc. Asia-Pacific region with a CAGR of more than 28% is projected to be the fastest growing organic foods and beverages market. Organic foods are rapidly making inroads into the mainstream food channel and emerging as a global phenomenon. Consumers today increasingly perceive organic produce as healthy for consumption as against the hitherto non-organic supremacy. Organic produce market is the largest segment in the organic foods & beverages market and is projected to reach sales of US$33 billion by 2010. In addition to health, concern for the environment is also driving a sect of consumers towards adopting an organic dietary regime. The non-dairy organic beverages market is also rising due to increased demand for organic juices and drinks. Non-dairy organic beverages market is set to witness the fastest growth of more than 18.5% during the ten-year analysis period.

Regulatory authorities across different countries and regions are negotiating equivalencies of organic programs wherein each country recognizes, and acknowledges the national organic program of other countries as an equivalent to the prevailing domestic standards. For instance, under the equivalency program Japan recognizes, and acknowledges the US National Organic Program as an equivalent to the prevailing domestic standards, and therefore products certified by the USDA is deemed fit for trade in the domestic market. Given, the elimination of bottlenecks in international trade, consumer demand for organic foods is expected to pour in thick, and fast.

A radical change sweeping through the industry is a change in image and product positioning. Manufacturers are attempting to redefine the taste and look of organics and in the process are positioning organics as food, which are scrumptious and delectable in addition to being natural, and organic. Organics is therefore making the epic, landmark effort to shed its uninteresting "health-only" image in favor of gourmet foods. As organics and gourmet seamlessly integrate, indulgent foods such as chocolates, cheeses, and condiments are now available in organic variants. This marks an important development in the evolution of organics where consumers graduate from perceiving organics as just natural and fresh to better and improved taste, and flavor.

5m Editor