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The market for organic foods grew from $2.9 billion in 2001 to $5.3 billion
in 2004, an 80.5% increase in the three-year period. Three forces aided this
substantial growth: rising consumer concern about the integrity of the food
supply; governmental standards that clearly define the meaning of the term
"organic;" and greater availability of organic foods through
mainstream channels.
It is significant that "organic" is a production claim, not a food
safety or content claim. The term refers to the way in which food is grown and
handled, and as a concept does not govern whether or not the food is safer or
healthier than non-organic food. Nonetheless, consumers have embraced the term
as signifying foods that are better for them or their families because foods
grown organically are not grown with chemical fertilizers, pesticides, or
hormones. Many consumers may be skeptical that organic foods are truly more
healthful, or worth an extra expense or time spent finding them, but organic
products now comprise 1.9% of total U.S. food sales. Organic food and drinks are
gaining market share in mainstream channels, showing that both retailers and
consumers are interested in food grown under these conditions.
This report examines some of the most popular organic food segments,
including dairy, bread/grains, fruit/vegetables, packaged/prepared foods,
confectionery/desserts/snacks, and meat/fish/poultry. It does not include
non-food products such as personal care, nutritional supplements, pet food,
household products, or flowers. While sales of these non-food products have
increased in sales, they only account for 0.15% of total non-food sales. A study
of these products is beyond the scope of this report.
Expansion in organic food products requires a number of conditions, including
sustained consumer interest and availability of organic-certified farmland on
which to grow the crops within the United States. Consumer interest is
paramount, and what is likely to remain the most important issue for consumers
is food safety. Food scares surrounding non-organically grown products (e.g. BSE
in cows, chemical and pesticide residue in fish) will drive consumers to seek
out the perceived safety of organic alternatives. As long as organic foods can
be considered safe, more consumers will turn to them. | 
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