Organic Market Trends and Outlook for 2011

ORGANIC MARKET TRENDS

By Kim West Hipps

The Organic Trend Begins

The Organic Market most likely was influenced by the book, Silent Springs by Rachel Carson, her 1950's book opened up people's minds to the idea that chemicals and other industrial waste was poisoning the water, and therefore threatened the entire eco-system, humans included! The timely release of her book was at the beginning of the new Agricultural Age.

 The Agricultural Age in the U.S. began at the end of the Industrial Age.  By the 1970's, a move towards organic foods  and products started to take hold but it's been a long, slow road toward advancing the Organic Age into where we stand right now, on the verge of an entire Organic Revolution.   

We are now in the midst of the Technological Age AND a quite progressive organic movement.  Information is available at the click of a mouse and Organic foods and products are now at your neighborhood grocery store, though sometimes not in large enough quantity, and at too high a price.  But as someone told me over 20 years ago, once enough people demand and buy organic, the lower the prices will get, and I've certainly witnessed this truth in the organic trend.

Our generation is plagued with illnesses, including WAY too much Cancer and Neurological disease.  The baby boomers are getting hit hard but there's also a higher rate of cancer among children and teens.  Breast cancer in young women has grown so much that Breast Cancer Awareness groups have had to learn to help a new generation of young people, whose needs and outlook on life can be very different.  Just tonight, on New Year's Eve in NYC, they were having a run for breast cancer and there were A LOT of women in their 20's that were running as survivors of breast cancer.

It's a tragedy to think of how common sense alone could've prevented so much of the toxic environment we find ourselves living in on this beautiful planet.

But knowledge is not wasted, and new ways of farming and growing, are old ways of growing.  I recall hearing once that since 1950, the soil has been over farmed and industrialized so much, that we have 50% less nutrients in our soil than we did in 1950.  That was 10 years ago. Supporting farmers who use organic methods, which includes enriching the soil with compost and other natural means of adding to the bio-availabity of the soil, and therefore to the fruit or vegetable.

During the 70's, the development of the organic market was stimulated by growing consumer interest in health and nutrition, as well as the increasing importance of preserving the natural environment. More recently the movement has been given significant impetus by events such as outbreaks of Bovine Spongiform Encephalapathy (BSE or Mad Cow Disease), even flu outbreaks such as The Bird Flu last year had people thinking twice about their poultry alternatives. The controversy surrounding Genetically Modified Organisms (GMOs) is also a big concern today, and the concerns continue to grow on a daily basis. 

The Organic Market has been growing exponentially since 2000 and this market, growing an unprecedented 39% per year, for 10 years now,  is now set to soar into 2011, possibly at the top of all markets,  as more and more organic oriented companies and products come to the forefront with affordability

Top Organic trends include

Organic Cosmetics,  have become important to many celebrities, including Oprah, who has featured Organic Cosmetics on her Oprah's Favorites list, this public interest has assisted in the recent explosion of organic cosmetics, which includes bath and body care.

Organic Foods is a top priority to millions.  Visit any large chain Whole Foods Store to get a feel for how big this market really is. 

The following stats from the Organic Trade Association put the Organics trend in perspective for the observant.

Industry Statistics and Projected Growth

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

• U.S. sales of organic food and beverages have grown from $1 billion in 1990 to $24.8 billion in 2009. Sales in 2009 represented 5.1 percent growth over 2008 sales. Experiencing the highest growth in sales during 2009 were organic fruits and vegetables, up 11.4 percent over 2008 sales
  Source: Organic Trade Association?s 2010 Organic Industry Survey
• Organic food and beverage sales represented approximately 3.7 percent of overall food and beverage sales in 2009. Leading were organic fruits and vegetables, now representing 11.4 percent of all U.S. fruit and vegetable sales.
  Source: Organic Trade Association?s 2010 Organic Industry Survey
• Organic non-food sales grew 9.1 percent in 2009, to reach $1.8 billion.
  Source: Organic Trade Association?s 2010 Organic Industry Survey
• Total U.S. organic sales, including food and non-food products, were $26.6 billion in 2009, up 5.3 percent from 2008.
  Source: Organic Trade Association?s 2010 Organic Industry Survey
• Mass market retailers (mainstream supermarkets, club/warehouse stores, and mass merchandisers) in 2009 sold 54 percent of organic food. Natural retailers were next, selling 38 percent of total organic food sales. In 2008, mass market retailers represented 45 percent of sales, while natural food channels represented 43 percent of sales. Other sales occur via export, the Internet, farmers? markets/ Community Supported Agriculture, mail order, and boutique and specialty stores.
  Source: Organic Trade Association?s 2010 Organic Industry Survey.
• Certified organic acreage in the United States reached more than 4.8 million acres in 2008, according to updated data posted by USDA. U.S. total organic cropland reached 2,655,382 acres in 2008, while land devoted to organic pasture totaled 2,160,577 acres. California leads with the most certified organic cropland, with over 430,000 acres, largely used for fruit and vegetable production. Other states with the most certified organic cropland include Wisconsin, North Dakota, Minnesota and Montana. Forty-five states also had some certified organic rangeland and pasture in 2008; of those, 13 states had more than 100,000 acres each, reflecting the growth in the U.S. organic dairy sector between 2005 and 2008. Certified organic cropland acreage between 2002 and 2008 averaged 15 percent annual growth. However, it still only represented about 0.7 percent of all U.S. cropland, while certified organic pasture only represented 0.5 percent of all U.S. pasture in 2008. Overall, certified organic cropland and pasture accounted for about 0.6 percent of U.S. total farmland in 2008. Although a small percentage of major U.S. field crops are grown organically, organic carrots represented 25 percent of total U.S. carrot acreage, while organic lettuce represented 8 percent of all lettuce acreage. Fresh produce is still the top-selling organic category in retail sales. Meanwhile, the organic livestock sector has seen growth, with 2.7 percent of U.S. dairy cows and 1.5 percent of layer hens managed under certified organic systems.
  Source: U.S. Department of Agriculture?s Economic Research Service, www.ers.usda.gov/data/organic.
• Acreage managed organically in 2008 in the world totaled 35 million hectares farmed by almost 1.4 million producers in 154 countries, according to data from The World of Organic Agriculture 2010. Organic agricultural land area increased in all regions, and was up nearly three million hectares, or nine percent, compared to 2007 data. Of the total area managed organically, 22 million hectares were grassland. In addition, 8.2 million hectares were used for cropland. The regions with the largest area of organically managed land are Oceania (12.1 million hectares in Australia, New Zealand, and surrounding island states), Europe (8.2 million hectares), and Latin America (8.1 million hectares), according to statistics in a chapter by Dr. Helga Willer. The report also recorded 31 million hectares that are organic wild collection areas and land for bee keeping. The majority of this land is in developing countries.
  Source: The World of Organic Agriculture: Statistics & Emerging Trends 2010.
• Meanwhile, according to Organic Monitor estimates, global organic sales reached $50.9 billion in 2008, double the $25 billion recorded in 2003.
  Source: The World of Organic Agriculture: Statistics & Emerging Trends 2010
  
  
  
  June 2010, Organic Trade Association @ www.ota.com

Choosing organic is not always easy in this economy but individual and community gardens have sprung up in every American city as people have started putting the power back in their diet.  There are even Organic farms, such as Organic Acres out of Oregon, who will let you plot out your own garden, then they'll plant it and ship it right to your door, or you can choose to have it sold for a profit at the company's local general store and farmer's market.  I personally find this a brilliant concept.  What's great about this cooperative is that the goal is to acquire participating organic farms throughout the country who can become a part of their regional economy, as well as make it possible perhaps, that you could drive and pick up your produce yourself.  Nashville, TN, my home town, has a similar cooperative where you pay so much per year from Spring to early fall, and pick up your organic goods at a specified time and place each Saturday. We split a membership with my in-laws making it more affordable.  I sure like the idea though of planning out my own garden, what I KNOW I will eat, and watching it grow virtually online.  Farmville, move over! Here comes real virtual gardening. 

For information on Organic Acres: www.myorganicacres.com/kinokim

Choosing organic is really, one commitment at a time for most of us.  For me, after fruits and vegetables naturally, I added milk, then eggs, and eventually meat, breads, household cleaners and finally bath and beauty products.  After awhile you realize, hey, I'm Organic!  The last couple of years have been financially very tight in my household and I confess, I do have to fight for my organic essentials with my spouse who still thinks, one egg is as good as the other, but fight for my organic eggs and milk, I do!  I have MS and I now know firsthand, that this is the only body you will ever have in this life and once it develops a serious illness, you don't ever see your diet or your environment the same way again.

It's your choice, it's your body; your world.  I hope 2011 will be a year that we all pay more attention to Organic foods and products and what we're putting into our bodies, not to mention our oceans, streams and land.

Join me in a commitment to go More Organic in 2011 and pick a couple of foods or products that you could make a big switch with.  Your palette and your body will thank you, so will the farmers who are committed to providing the privilege.

Kim West Hipps

January 1, 2011

www.myorganicliving.biz 

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Comments

Kim Hipps    You are smart Kristin. Our food and our water are the most important things we give ourselves. and you are right again when you say, "What is more important than our own and families health? Nothing!" Thanks for the great comments! :) Jan 14th 2011 01:23

Kim Hipps    btw, I don't know where all those question marks in place of commas and apostrophes came from. I don't see where i can edit it out. It must be a part of the apsense program. Frustrating. I worked too hard on it for that mess of question marks everywhere. Jan 14th 2011 01:24

Kim Hipps    ok, I was able to edit it. A much cleaner read now. k Jan 14th 2011 01:35