US organic food market to see rapid growth
The United States is already the world's largest organic food market and it is predicted to expand quite dramatically over the next few years. This is according to a new report by TechSci Research, which estimated that the market will grow by a compound annual rate of 14 percent through 2018.
The report explains that there is growing demand for organic food products, as households are now increasingly aware of the health benefits of eating foods produced using more natural methods. Coupled with rising domestic production of organic foods, this is projected to result in significant revenues for manufacturers, according to the Food Navigator USA.
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Karan Chechi, research director at TechSci research, commented that demand is particularly strong in the western United States. Across the country, organic foods accounted for four percent of the total food market revenue in 2010. Between 2010 and 2012, the overall level of consumer spending rose by 7.67 percent and it is likely that the expenditure on organic food products also increased, she said.
Meanwhile, the Organic Trade Association has estimated that more than four in five households bought organic foods at least occasionally in 2012. Between 2002 and 2011 U.S. food organic food production rose by 240 percent, compared to a mere three percent in the non-organic food market, the association said. Information Resources Inc. recently reported that in 2012 the total value of natural and organic products bought in the United States reached $81.3 billion, up 13.5 percent on 2011.