New Global Report on Organic Food & Drink Sales
The global market for organic food & drink is recovering from the economic
slowdown, with revenues projected to approach $60 billion this year. In its new
Global Organic Food & Drink Market report, Organic Monitor ( www.organicmoni-tor.com) states that although global sales increased by just 4. 7 percent in 2009,
sales are projected to expand at higher growth rates from 2011
onward as the world economy comes out of recession.
The report finds that the European market was the
most affected by the financial crisis with the UK organic
market contracting in 2009 and the German market stagnating. In contrast, the market in some countries, including Sweden and France, showed resilience, reporting
growth rates in excess of 15 percent. The North American
market for organic food & drink continues to show healthy
growth. It has overtaken the European market in 2010 to become the largest in
the world. Although the U.S. has shown a large rise in organic farmland, organic
food supply continues to fall short of demand; organic products are imported
from various regions. Latin America has become a major source of organic fruits,
vegetables, meats, seeds, nuts and ingredients. With growing consumer awareness
and better distribution, the market for organic products in other regions is also
showing healthy growth, especially in Asia and Latin America.
A challenge to overcome is the consumer perception that organic is expensive.
Also, with food inflation looming, prices of organic are expected to increase. In
anticipation, leading organic companies are locking in supply of organic ingredients; some by investing in ethical sourcing projects in developing countries.
According to the report, organic
farming is now practiced on over 35
million hectares in 154 countries, with
increases expected to occur especially
in developing countries. Meanwhile,
consumer demand is expected to remain concentrated in Europe and
North America. The growing number
of organic standards throughout the
world, and the lack of harmonization,
is becoming an impediment to global
trade. Consequently, organic producers have to adopt multiple standards to
develop an international presence.
Another global trend is the growing
demand for ethical products. Certification agencies are responding by integrating social requirements into their
organic standards. Thus, a growing
number of organic products are certified organic and fair trade.
The latest findings of this report will
also be discussed at The Sustainable
Foods Summit, taking place in San
Francisco on January 18-19, 2011.