Analysis

Report: US organic food market growing faster than conventional (Sept 2011)

Sep 2011

 

The third edition of the Packaged Facts http://www.packagedfacts.com/ report ‘Natural and Organic Foods and Beverages in the US’ found that the market for organic foods and beverages in the US retail has grown by 56% in the past five years, while the market for ‘natural’ products has gone up by 73%. The report predicts even faster growth up to 2015. 
Growth in the ‘natural’ market was given a huge boost by food giant Frito-Lay’s decision to switch its snack selection to natural formulations – and may encourage other major players to follow their example, increasing the natural product market share even more. 
This report follows a number of other reporting similar positive findings. In May we reported on the Organic Trade Association’s 2011 Organic Industry Survey http://www.ekobai.com/analysis/update/88/organic-industry-valued-at-29-billion-in-us-in-2010-may-2011/ which reported an 8% annual growth in sales for organic products (consistent with the Packaged Facts report) and valued the 2010 US market as $28.6 billion in 2010 (some $5 billion more than the figure in the new report).
In July we reported on the rise in demand for organic products in India http://www.ekobai.com/news/link/5616 which is part of a larger trend in the growth of the market for ‘eco-friendly’ products in the subcontinent recently reported by Nielsen. http://www.ekobai.com/news/link/5698
Sales of organic products have slumped in other parts of the world, however. With figures from the UK’s Soil Association showing a 5.9% slump in 2011. http://www.soilassociation.org/

The third edition of the Packaged Facts report ‘Natural and Organic Foods and Beverages in the US’ found that the market for organic foods and beverages in the US retail has grown by 56% in the past five years, while the market for ‘natural’ products has gone up by 73%. The report predicts even faster growth up to 2015. 

Growth in the ‘natural’ market was given a huge boost by food giant Frito-Lay’s decision to switch its snack selection to natural formulations – and may encourage other major players to follow their example, increasing the natural product market share even more. 

This report follows a number of other reporting similar positive findings. In May we reported on the Organic Trade Association’s 2011 Organic Industry Survey which reported an 8% annual growth in sales for organic products (consistent with the Packaged Facts report) and valued the 2010 US market as $28.6 billion in 2010 (some $5 billion more than the figure in the new report).

In July we reported on the rise in demand for organic products in India which is part of a larger trend in the growth of the market for ‘eco-friendly’ products in the subcontinent recently reported by Nielsen. 

Sales of organic products have slumped in other parts of the world, however. With figures from the UK’s Soil Association showing a 5.9% slump in 2011. 

 

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