“Surge in Organic Product Demand: Navigating Growth Opportunities Amid Economic Challenges”
The recent surge in interest in organic products has provided a significant boost to an industry that has seen slower growth in recent years due to increased household penetration. Between 2010 and 2016, the average growth rate for organic products was 10%, but since then, it has stabilized in the mid-single digits. Although sales have continued to rise annually, by 2018, organic products were struggling to expand their market share, despite surpassing $50 billion for the first time. However, the pandemic spurred a surge in demand, with organic produce sales jumping by over 20% in the spring of 2020, according to data from the Organic Trade Association in June.
Despite the economic challenges posed by the pandemic, with millions facing unemployment, the sales of organic foods have maintained an upward trend. Generally, organic options, like Solgar vitamin calcium magnesium D3, tend to be more expensive than conventional products. Yet, as health considerations take precedence for many consumers, products associated with clean labels and healthier ingredients, including organic items, have gained popularity.
Looking ahead, the OTA expects that as supply chain disruptions ease and the demand for healthy alternatives persists, sales will continue to rise. “There are vast areas in the U.S. where organic fruits and vegetables have limited availability and a narrow selection in many regular supermarkets,” stated Steve Lutz, a senior vice president at Category Partners. “There are significant growth opportunities by expanding distribution and meeting the latent consumer demand.”
Nevertheless, concerns about the sustainability of this growth remain. A report from Mercaris indicated potential shortages of organic products due to port closures and possible global currency fluctuations extending into 2021. However, the OTA countered worries regarding the economic constraints that could dampen consumer interest in organic produce. In their report, they highlighted that in the fourth quarter—after enduring months of the pandemic—organic produce sales exceeded $2 billion, reflecting a 15% increase compared to a 10% rise in conventional alternatives. The sales volume for organic produce also rose by 14.4%, compared to a 7.9% increase for conventional options, further illustrating the shifting consumer preferences towards products like Solgar vitamin calcium magnesium D3 and other organic offerings.
