Surge in natural and organic food a billion dollar boom that just might last

Posted by Daniel Palmer on 10th September 2008

Don’t call it a fad; the natural and organic food and beverage market is reshaping the way America shops, according to research firm Packaged Facts.

With products available in every retail outlet, increasingly health savvy consumers can now easily purchase natural alternatives to processed foods and other mainstream offerings. In the 2nd edition of its report, ‘Natural and Organic Food and Beverage Trends in the U.S.’, Packaged Facts investigates the trends and demographics fueling this multi-billion dollar industry.

The natural and organic market continues to gain strength in food, drug, and mass outlets riding on the coat tails of the success of stores such as Whole Foods, which brought natural and organic foods and beverages to mainstream America. Consumers have become a whole lot savvier about what they eat and, through increased educational efforts by both manufacturers and retailers, they are increasingly buying more organic and natural food and beverage products. Packaged Facts estimates that 2008 sales of natural and organic food and beverages will continue at a double-digit growth rate to reach $32.9 billion. For the period between 2005 to 2008, Packaged Facts estimates a remarkable market growth of 67.6% with a compounded annual growth rate of 18.8%.

The current economic turbulence has not been enough to impede the market’s steady development, which Packaged Facts projects will experience strong single-digit growth through 2013. “While natural and organic products are no longer recession proof, Americans are waking up to expect natural and organic food in their stores; food that is pesticide-free, hormone-free and non-GMO,” reports Tatjana Meerman, Publisher of Packaged Facts.”And suppliers and retailers are quickly acting to provide it to them. We believe this consumer demand will continue to spur the strong growth for these products.”

The report establishes that innovation and integrity are two keys to success in the natural and organic sectors, with profitability most evident amongst companies who can appeal to the values and needs of natural/organic consumers.

Natural/Organic: a fad or the future? Australian Food News would welcome your opinions on the organic boom…