 |
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| The organic
industry continues to expand. Here are some statistics regarding
this burgeoning market. |
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| Natural
Business' 1998 Financial Market Overview reported that organic
food sales were $4 billion for 1997, and that natural foods
are the fastest-growing segment of the retail market. |
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| Based
on statistics from Natural Foods Merchandiser, the organic
industry has posted double-digit sales growth of 20 percent
or greater for the ninth consecutive year. |
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| Packaged
Facts, a New York City-based market research firm, predicts
that sales of organic foods and beverages will increase by
more than 150 percent to $6.6 billion by the year 2000. |
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According
to a 1995 Food Marketing Insititute's "The Food Marketing
Industry Speaks:"
- Percentage
of mainstream stores carrying organic produce: 42 percent
- Percentage
of shoppers who buy natural or organic foods at least
once a week from supermarkets: 25 percent
- Percentage
of senior management who believe that organic and natural
foods are an upcoming trend: 75 percent
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"Organic
sales in the United States reached $5.4 billion in 1998
and were estimated at $6.4 billion in 1999. Datamonitor
projects sales will continue to grow at approximately 20
percent per year, reaching $7.76 billion in the year 2000,
$9.35 billion in 2001, slightly more than $11 billion in
2002, and slightly more than $13 billion in 2003. Sales
during the 1990s grew by 20-24 percent per year. Organic
produce still remains the leading category, although such
categories as organic frozen foods, organic dairy, organic
bakery items/cereals, organic baby food, and organic ready
meals are growing at a faster rate."
-Organic
Trade Association and Datamonitor (Datamonitor's 1999 U.S.
Organics report)
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"Organic
foods have been a particularly bright spot on the agricultural
horizon in recent years. According to industry estimates,
retail sales in the United States grew from $1 billion
in 1990, to $5.5 billion in 1998. Although part of a high-value
niche market, organic products are no longer found exclusively
at farmers' markets or health food stores. Instead, mainstream
shoppers are finding increasing numbers of organic products
on supermarket shelves around the country. At the same
time, demand for organic products overseas is at an all-time
high, and growing"
-U.S.
Department of Agriculture, Foreign Agricultural Service,
AgExporter June 2000
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"Industry
observers expect demand for organic products and commodities
around the world to grow for several reasons. First, core
support for organics is strongest among affluent, educated
health-conscious consumers. The motivations that first
drew them to organics, such as concern for the environment
and their personal health, are likely to endure. Second,
today's time-pressed organic product consumers want convenience
and variety. Mainstream retailers who want to meet consumers' preference
for one-stop shopping will require a steady and reliable
supply of organic products.
-U.S.
Department of Agriculture, Foreign Agricultural Service,
AgExporter June 2000
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Almost
one-third of the U.S. population currently buys organically
grown food products. Another 60 percent does not, but would
be willing to try them. Light organic buyers account for
29 percent of the U.S. population, while 3 percent are
heavy organic buyers. Over half of all organic products
are purchased at grocery stores and supermarkets. The most
frequently purchased product groups are vegetables, fruits,
and cereals/grains
-The
Hartman Group, "The Organic Consumer Profile," January
2000
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According
to a Jan. 25, 1999, United Nations Food and Agriculture
announcement, "Consumer demand for organically produced
food is on the rise and provides new market opportunities
for farmers and businesses around the world."
-United
Nations Food & Agriculture web site, 1999, www.fao.org/waicent/ois
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Organic
shoppers are significantly more likely than other shoppers
to say their diet is very important, and that their food
choices are influenced by environmental issues. In addition,
college educated shoppers are the key market for organic
products.
-HealthFocus
Inc., Des Moines, IA, 1999, "What Do Consumers Want from
Organics?"
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According
to the "Fresh Trends 2000" report published by The Packer:
- Nearly
one-third of consumers bought natural or organic produce
in the previous six-month period.
- Eighty-two
percent of those who had purchased organic fresh produce
said that they bought vegetables.
- The
leading purchasers of organic are those ages 45-54 (36
percent) and ages 18-34 (35 percent). Purchases
of organic are highest among consumers in the West (38
percent), and those with an income of $75,000 or more
(37 percent)
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Of 1,000
shoppers polled, 67 percent indicated that their primary
store provides natural or organic foods. Of the 669 persons
who said their supermarket carries natural or organic foods,
54 percent buy organic or natural foods at least once a
month, 23 percent buy them at least once a week, 31 percent
buy them at least one to three times a month, and 26 percent
never buy organic or natural products. Meanwhile, 37 percent
of the 1,000 shoppers said they have looked for and purchased
products labeled as "organic," while 38 percent said they
almost always or sometimes look at organic claims.
-Food
Marketing Institute, Trends in the U.S.: Consumer Attitudes
and the Supermarket, 2000
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| Restaurant & Institution's
Jan. 1, 1998 report "A Year to Flavor," lists organic produce
as one of the year's biggest trends, stating: "Organic foods
will play a burgeoning role in foodservice." |
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| Nine in
ten shoppers who eat organically grown produce rank it as
excellent or good in terms of long-term health benefits and
nutritional value, according to the Food Marketing Institute/Prevention
magazine's Shopping for Health, 1997. |
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| In Food & Wine
magazine's 1997 Chef's Survey, administered by Louis Harris & Associates,
76 percent of those chefs surveyed responded "Yes" to the
question, "Do you actively seek out organically grown ingredients?" |
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| According
to the National Restaurant Association, organic items are
now offered by about 57 percent of restaurants with per person
dinner checks of $25 or more. In addition, 29 percent of
restaurants with prices in the $15 to $24 range also offer
organic items. |
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The winner
of the "Award of Excellence" in the "Chef of the Year" category
at the annual International Association for Culinary Professionals
1997 Awards Ceremony was chef Nora Pouillon, of Restaurant
Nora in Washington, D.C. Pouillon estimates 95 percent
of the ingredients used at Restaurant Nora are organic.
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| Renowned
chefs who advocate using organic ingredients include: Alice
Waters, Nora Pouillon, Rick Bayless, Jesse Cool, Stan Frankenthaler,
Peter Hoffman, John Ash and Charlie Trotter. |
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| In 1998
Swissair became the first air carrier to serve organic foods
to passengers. The change came after surveys showed that
customers wanted food that is "fresh and natural." |
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| Prime
Select Seafoods Inc., of Cordova, AK, worked for three years
to receive its organic certification for Copper River wild
salmon and halibut. After successfully completing a yearlong
certification review process through the Organic Growers
and Buyers Association (OGBA) of Minneapolis, Minnesota,
and were awarded an organic certification for the 2000 fishing
season in May. |
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| Bristol
Bay salmon marketed by Capilano Pacific of Bellingham, WA
met the protocol standards of Farm Verified Organic, a well
established private certification agency. |