Organic Food
Marketplace
Characteristics of
U.S. Organic Sector
The U.S. organic food industry crossed a threshold in 2000: for the first time, more organic food was purchased in conventional supermarkets than in any other venue. Industry estimates suggest that nearly half of the
$7.8 billion spent on organic food in
2000 was purchased in conventional retail outlets. Organic products are now available in nearly 20,000 natural foods stores (Natural Foods Merchandiser), and are sold in 73 percent of all conventional grocery stores
(Food Marketing Institute).
Growing consumer demand for organic products has been manifested in the market in many ways. Acreage of certified organic farmland is increasing to meet growing consumer demand. According to the most recent
USDA estimates, U.S. certified organic cropland doubled between
1992 and 1997, to 1.3 million acres.
Preliminary estimates for 2001 suggest that certified organic acreage significantly increased between 1997 and 2001. From the consumer side, new products are being introduced rapidly. For example, over 800 new organic products were introduced in the first half of 2000. Desserts made up the majority of new products in
2000, while most new products introduced in 1999 were beverages (Myers and Rorie).
The new U.S. Department of Agriculture standards for organic food, slated to be fully implemented by October
2002, are expected to facilitate further growth in the organic foods industry.
The USDA standard defines organic production as “A production system that is managed in accordance with the [Organic Foods Production] Act and regulations in this part to respond to site-specific conditions by integrating cultural, biological, and mechanical practices that foster cycling of resources, promote ecological balance, and conserve biodiversity.”1 The national organic standards address the methods, practices, and substances used in producing and handling crops, livestock, and
Characteristics of
U.S. Organic Sector
The U.S. organic food industry crossed a threshold in 2000: for the first time, more organic food was purchased in conventional supermarkets than in any other venue. Industry estimates suggest that nearly half of the
$7.8 billion spent on organic food in
2000 was purchased in conventional retail outlets. Organic products are now available in nearly 20,000 natural foods stores (Natural Foods Merchandiser), and are sold in 73 percent of all conventional grocery stores
(Food Marketing Institute).
Growing consumer demand for organic products has been manifested in the market in many ways. Acreage of certified organic farmland is increasing to meet growing consumer demand. According to the most recent
USDA estimates, U.S. certified organic cropland doubled between
1992 and 1997, to 1.3 million acres.
Preliminary estimates for 2001 suggest that certified organic acreage significantly increased between 1997 and 2001. From the consumer side, new products are being introduced rapidly. For example, over 800 new organic products were introduced in the first half of 2000. Desserts made up the majority of new products in
2000, while most new products introduced in 1999 were beverages (Myers and Rorie).
The new U.S. Department of Agriculture standards for organic food, slated to be fully implemented by October
2002, are expected to facilitate further growth in the organic foods industry.
The USDA standard defines organic production as “A production system that is managed in accordance with the [Organic Foods Production] Act and regulations in this part to respond to site-specific conditions by integrating cultural, biological, and mechanical practices that foster cycling of resources, promote ecological balance, and conserve biodiversity.”1 The national organic standards address the methods, practices, and substances used in producing and handling crops, livestock, and