The World Organic Marketplace is Growing

Demand, in the USA, European Union, Canada and Japan, for certified organic products continues to exceed most domestic supplies. Because this demand for organic fresh produce is expected to continue to exceed production in developed countries, imports will continue to be needed to meet consumers' demand. “More than 64 million acres of lands worldwide are certified 'organic' and are generating more than $25 billion USD in revenue.”
Source: Resource and Markets "Current Organic Agriculture Market Worldwide: A Year in View (2005)"

Observed price premiums generally range from between 20% and 40%. As expected, prices vary widely over time, due to seasonal trends in production and consumption, but also from one market place to another within a country.

Nevertheless, the organic sector is still a niche market in the total food sector. Market shares of organic foods were found, in most countries, to be around 1% - 3% of total food sales.
Source: “World Markets for Organic Fruit and Vegetables - Opportunities for Developing Countries in the Production and Export of Organic Horticultural Products” © FAO/ITC/CTA 2001

Studies show that the United States’ organic market has been growing at a rate of between 20% and 25% for the last 10 years. Sales of organic foods and beverages have grown from $1 billion USD in 1990 to $10.3 billion USD in 2003.
Source: Market-Led vs. Government-Facilitated Growth “Development of the US and EU Organic Agricultural Sectors” (USDA Economic Research Service) By: Carolyn Dimitri and Lydia Oberholtzer

What Organic Products Are Selling Best?

However, market trends show that USA Organic consumers want more products and more convenience in the products they buy. Although fresh produce is currently the biggest part of the market, it is the slowest growing part of the market.

Why Do Shoppers Buy Organic?

Where Are These Organic Products Being Sold?

Studies show that the organic markets in European countries are growing at a rate of between 1% and 20%, depending on the country. “In 2003, retail organic sales in the European Union reached almost $13 billion USD.”
Source: Market-Led vs. Government-Facilitated Growth “Development of the US and EU Organic Agricultural Sectors” (USDA Economic Research Service) By: Carolyn Dimitri and Lydia Oberholtzer

Initially, more organic products were sold in specialty stores, organic coops and direct sales but, in the last couple of years, more and more supermarkets carry organic products as well. It is estimated that approximately 35% consumers eat organic foods regularly.

This purchasing tendency has been provoked by a series of food scares across Europe. The Soil Association performed a consumer poll which showed the following:

Why Do Shoppers Buy Organic?

• Fewer Chemicals 59%
• Better for me and my Family 53%
• Taste 43%
• Environment 28%
• Animal Welfare 24%
  Source: Soil Association 1999, “The Organic Food Market in Europe, An Overview of Europe’s Fasts Growing Niche Market”, Peter McDonald

Studies show that the Canadian organic market is growing at a rate of between 20% and 25%. Canadian organic retail sales growth was expected to rise from $0.7 billion in 1997 to $3.1 billion in 2005.
Source: “Canada’s Agriculture, Food and Beverage Industry” Government of Canada

The United States supplies 85% – 90% of the organic food to Canada. However, a large part of these products are not from the United States. The majority of these organic products come from Latin America (generally fresh products) and from Europe (generally packaged products).

Studies show that the retail value of certified organic products is around US$350 million, or about 1% of the total food sales in Japan.
Source: “World Markets for Organic Fruit and Vegetables - Opportunities for Developing Countries in the Production and Export of Organic Horticultural Products” © FAO/ITC/CTA 2001 citing “International Federation of Agriculture Scientific Conference”, Basel 2000 (Tokue, 2000) and (OTA, 2001).

Why Do Shoppers Buy Organic?
(in order of importance)
1. Fewer Chemicals, Cleaner Product
2. Better for me and my Family
3. Better for the Environment
Source: “World Markets for Organic Fruit and Vegetables - Opportunities for Developing Countries in the Production and Export of Organic Horticultural Products” © FAO/ITC/CTA 2001

What Organic Products Are Selling Best?
(in order of importance)
1. Rice, wheat-based products and soybeans
2. Processed products
3. Fresh and frozen fruits and vegetables (less than 5% is certified organic product)
Source: “World Markets for Organic Fruit and Vegetables - Opportunities for Developing Countries in the Production and Export of Organic Horticultural Products” © FAO/ITC/CTA 2001

Market trends show that Japanese Organic consumers want more certified organic products. Polls show that consumer demand is increasing for the following:
- Fresh organic fruit and fruit juices
- Avocado (fresh and oil)
- Processed fruit pulps
- Frozen vegetables
- Convenience foods
- Honey
- Herbal tea
Source: “World Markets for Organic Fruit and Vegetables - Opportunities for Developing Countries in the Production and Export of Organic Horticultural Products” © FAO/ITC/CTA 2001

Where Are These Organic Products Being Sold?
(in order of importance)
1. Direct from producer to buyer
2. Mass-market grocery stores
3. Home Delivery
Source: “World Markets for Organic Fruit and Vegetables - Opportunities for Developing Countries in the Production and Export of Organic Horticultural Products” © FAO/ITC/CTA 2001