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America expects huge growth in organic food market

December 3, 2013

If predictions are accurate, the organic food market is set to see a compound annual rate of around 14 per cent during the period between 2013 and 2018.

The United States Organic Food Market Forecast and Opportunities report has been released. It indicates the organic fruit and vegetables market will dominate until 2018.

Organic meat including beef and lamb, will see an increase in demand over the five year period.

The country’s western states have a major share in the organic food market revenues, but as production is set to increase alongside the income of residents per capita, demand for these premium products is set to increase.

One factor leading to this surge is the prevalent concern about pesticides, genetically modified organisms (GMOs) and other antibiotics used in the production of commercial food.

Americans – and Australians – are increasingly worried about the effects these additives have on their bodies, as they could have adverse health effects.

In America alone, almost 5 million kilograms of pesticides are used every year. On top of this over 20,000 pesticide products are marketed every year.

Organic foods are considered a more healthy alternative by many as they do not use as many additives.

Farmers rely on animal-friendly farming methods to produce delicious and ethically sound organic meats.

According to the American Organic Trade Association 2012, around 80 per cent of families have purchased organic food more than once.

Demand for organic food is also increasing in Australia and the market expects to see annual growth of up to 60 per cent, according to the Victorian government.

Consumer demand is growing by around 20 – 30 per cent and retail sales have increased by 670 per cent in the twelve year period from 1990 – 2002.

The Victorian government suggests more than one in six Australian households purchase organic foods “on occasion”.

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