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The organic industry continues to expand. Here are some statistics regarding this burgeoning market.
 
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.
 
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.
 
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.
 

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
 

"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)

 

"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

 

"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

 

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

 
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

 

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?"

 

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)

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

 
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."
 
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.
 
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?"
 
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.
 

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.

 
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.
 
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."
 
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.
 
Bristol Bay salmon marketed by Capilano Pacific of Bellingham, WA met the protocol standards of Farm Verified Organic, a well established private certification agency.

 

 

For more Information, email: Glenn_Haight@commerce.state.ak.us or call (907) 465-5464