Abstract
In the last ten years, demand for organic foods has doubled, and is expected
to more than double again in the next few years, increasing from just under
$11 billion in 2004 to more than $30 billion by 2007. While organics represent
only about 2 per cent of sales in both retail and food service channels, this
share is expected to increase. In food service, more than half of operators
surveyed by Restaurants & Institutions (R &I) in early 2005 report more orders
for organic menu items than two years ago. While food service currently
represents only about 4 per cent of organic sales, use of organic products in
U.S. food service is increasing by an estimated 20 per cent annually. In fine
dining, almost two-third of respondents reported that they already menu
organic, and in institutional food service, some college and university
operators are trying to achieve as close to 100 per cent organic as supplies
will permit.
The challenges of supply are formidable, however. Prices fluctuate wildly from
summer to winter, making seasonal menus essential. In fine dining, customers
will pay extra for organic, and don' t mind, or even welcome, the frequent
changes of menu. But for chains like Panera and O' Naturals, menu stability is
important and organic supplies are a constant challenge.
Organic on the Menu: Healthy Eating Trends in U.S. Restaurants examines the
potentially lucrative - and risky - market for organic in foodservice. This
Packaged Facts report discusses market trends and drivers to growth, profiles
supplies, producers and a wide range of foodservice establishments engaged in
organic dining (from white tablecloth restaurants to college foodservice
operations), and discusses the consumers who are instrumental in bringing
healthy eating to the eating out experience.
Report Methodology
The information in Organic on the Menu is based on both primary and secondary
research. Primary research involved on-site examination of the retail milieu,
interviews with marketing, public relations and industry analysts within the
beverage market and consultants to the industry. Secondary research entailed
data-gathering from relevant trade, business, and government sources,
including company literature. Consumer information was derived from Simmons
Market Research Bureau, fall 2005 National Consumer Survey.
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