ORGANIC GROWTH

April 10, 2010

From the first organic market survey conducted by OFI (Organic Foods International, LLC), sixty-one percent of respondents estimated the total growth of the organic market for 2010 and 2011 to be 20% (10% per annum).  A new report, Mintel also estimates a 20% organic market growth between 2010 and 2011.

There are many contributing factors including an anticipated recovery from the recent, deep recession, to environmental concerns to continued health and lifestyle concerns.  Mintel also reports that 35% would pay more for environmentally friendly products.  Also reported is that organic food buyers seem to be loyal to the category.  Twenty percent of the consumers have switched to a less pricey organic option – suggesting private brands or discounted national brands.  A healthy 48% reported increased purchases of organic food as compared with the time period before the recession.

With Mintel reporting that as much as 1/3 of the population never have tried organic products, and OFI anticipating strong growth, there is strong evidence to support the 20% anticipated category growth.

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