Dive Brief:
- The global organic food market is expected to increase at a CAGR of more than 14% from 2016 to 2021, according to a TechSci Research news release.
- In 2016, nearly 43.7 million hectares of agricultural land were being utilized to grow organic food, with more than 2.3 million producers across the globe managing the cultivation.
- Major food companies and increased distribution channels have helped in the increase of organics thanks to easier availability of these food products for consumers.
Dive Insight:
Consumers' growing awareness of the many health benefits organically produced foods offer is converging with an increase in disposable income, leading to the rise of the organic food market. In 2015, the U.S. saw its biggest year of organic food sales ever, growing 11% to a total of $39.7 billion, according to the Organic Trade Association.
A big part of this movement is tied to the sustainability strategy leading players in the global organic food market use: offering these products in environment-friendly packaging to lure consumers.
Still, organic agriculture occupies only 1% of global agricultural land, making it a relatively untapped resource, according to Organic Agriculture in the 21st Century.
The U.S. Department of Agriculture has several strict guidelines in order for a farm to be certified as organic. The entire process can take up to three years.
Several farms are in currently in transition, with companies like General Mills and Ardent Mills investing in and working with farmers who want to become certified as organic.
As long as that transition is successful, supply could eventually easy meet supply. According to a study in the journal Nature, organic farming could realistically feed an estimated world population of 9.6 billion people in 2050 without expanding the area of farmland we already use, so long as more organic farms came to fruition.