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The organic industry is set to enjoy good growth over the next twenty years, according to a new study by the nation's Organic Trade Association (OTA), which forecasts that by 2025 organic products will be considered “commonplace.”
The findings, published last week, are based on predictions by industry research organizations, including the Natural Marketing Institute, Nutrition Business Journal and Packaged facts, as well as leading organic producers Organic Valley , Smucker Quality Beverages and Stonyfield Farm.
According to OTA, the availability of organic goods is also due to increase in the period, with forecasts that these products will be sold “anywhere and everywhere.”
Strong government support will help boost the organics market, said the study, which also predicted that one challenge due to be faced by the industry will be consumer confusion about definitions around the organic labels.
$10.8 billion in 2003 and has grown at an average rate of 19.5 percent per year since 1997, while market researcher Euromonitor predicts that sales of packaged organic foods alone will be worth $8.6 billion at retail by 2009 – up from 5.1 billion in 2003.
Editor's Insight: This report notes that hectic lifestyles mean that convenience foods and ready-to-eat meals will also increase in popularity, while consumers will also turn towards items that mimic conventional food brands and products perceived as providing health benefits.
While there are not a lot of organic items available for the vending trade, the number continues to increase every year. While these are not high volume items, they generally carry a higher price point. Those consumers who do buy these items are usually willing to pay the higher price.
These items also help change the consumer's perception of the vending machine as a purveyor of “junk” food. 12-14-05
