SPECIAL REPORT:
Organic Cotton Market Valued at $1.9 Billion in 2007
According to the “Organic Exchange Organic Cotton
Market Report 2007,” global retail sales for organic cotton
products increased 85 percent to $1.1 billion in 2006, up
from $583 million in 2005, and is projected to increase 83
percent to $1.9 billion by the end of 2007. Organic
Exchange (OE) projects the market will increase to $3.5
billion in 2008, $4.5 billion in 2009 and $6.8 billion in
2010. The five companies using the most organic cotton
in 2006 were Wal-Mart, Nike, Coop Switzerland, Patagonia
and Germany-based Otto. Woolworths South Africa and
C&A have recently introduced large programs and OE
expects the companies to make the top five list in 2007.
Reasons for the organic cotton market growth include strong consumer
demand for apparel, home textile and personal care products containing organic
fibers as well as expansion of organic cotton programs by companies that have
been in the organic
market for several
years such as EDUN,
Gaiam, Hanna
Andersson, H&M,
howies, Levi Strauss
& Co., Loomstate,
Marks & Spencer,
Nordstrom, prAna,
Under the Canopy
and Woolworths
South Africa. Sales Source: Organic Exchange Organic Cotton Market Report 2007
growth will be further driven by entrance into the organic cotton market by
major brands and retailers including Barneys, C&A, Next, Pottery Barn, Stella
McCartney and Target.
“A fundamental shift in consumer buying patterns in the apparel, home textiles and personal care markets is happening as more products made from organic cotton and other organic fibers are becoming available to consumers,” said
Rebecca Calahan Klein, OE program director and author of the report.
Klein found that organic cotton apparel has become more fashion-forward,
with a wider variety of products across product categories. Apparel represented
85 percent of total market demand in 2006, with home textiles (bedding and
towels) amounting to 10 percent and personal care products 5 percent.
Other trends include increased use
of other organic fibers in addition to
cotton, such as organic wool, linen
and even leather; and certification to
standards such as the Global Organic
Textile Standard(GOTS) and Oeko-Tex processing standards, as well as
fair trade. In addition, expanded use
of the Organic Exchange Online
Tracking Service, enables companies
and consumers alike to track the fiber
in a product back to a particular field
or animal.
The report’s data describing an
increased organic cotton marketplace
reflects the increasing organic fiber
production data reported in the organization’s September 2007 “Organic
Exchange Organic Farm and Fiber
Report.” That report showed that the
amount of organic cotton produced
globally increased 53 percent from
2005/06 to 2006/07. According to the
report, 57,931 metric tons, or 265,517
bales, were produced in 24 countries
on all arable continents. The top ten
organic cotton producing countries
were: Turkey, India, China, Syria, Peru,
the United States, Uganda, Tanzania,
Israel and Pakistan. Nearly half of the
organic cotton was grown in the
Middle East, while approximately one-third of organic cotton was grown in
Southeast Asia.
Organic Exchange ( www.organic
exchange.org) facilitates expansion of
the global organic cotton fiber supply
by working with farmers, leading
brands and retailers and their business
partners to develop organic cotton
programs.
Organic Coffee Sales Are Hot
U.S. retail sales of organic coffee in 2006 increased more than 24 percent, according to the Organic Trade
Association’s (OTA’s) “2007 Organic Manufacturer Survey.” Another recent study from the Sustainable
Markets Intelligence Center (CIMS) estimated that approximately 65 million pounds of organic coffee were
imported into the United States in 2006 (which equals approximately $572 million). The authors estimate
the budding organic coffee sector represents 2.5 percent of the total U.S. coffee market. While still a small
number, the double digit annual average growth rate documented by the researchers between 2000 and
2006 dwarfs the estimated 1.5 to 2 percent projected annual growth rate of the conventional coffee
industry. Companies participating in the Organic Coffee Collaboration, a project of the Organic Trade
Association, have launched many media and consumer awareness campaigns to support this growth. The
Collaboration includes Café Bom Dia, Dallis Coffee, DaSilva, Elan, Equal Exchange, F. Gaviña & Sons, Fresh
Harvest Products, Green Mountain and Swiss Water. For more information on the Organic Coffee
Collaboration, see: http://www.ota.com/organic_and_you/coffee_collaboration.html
