Changes in Organic Grocery
Changes in Organic Grocery
The changes in organic grocery include increased sales, continued growth, expansion of farmland, new products, and better government funding. Unfortunately, the biggest impact is the governments funding because of its powers within the farm industry. They have power to increase or decrease funding to many facets within the farm industry which has a direct correlation to prices for consumers.
Organic food is helping parents provide healthier snack options for their children and is continuing to be a growing trend along with investments by stores in organic products (Siegner). Organic grocery sales rose over 50% from 2008 (20.39 billion) - 2018 (47.86 billion) with steady growth each year (Gundala et al). Definitely a great sign for the industry. Does this mean sales will reach over 80 billion by 2028?
In 2021 Organic food sales reached 57.5 billion. The data suggests the same type of increasing growth since 2018. When will this continuous organic food growth year after year end?
Organic product sales, both food and non-food, reached double digit growth in 2020 (12.4%) which has not reached that type of growth since 2015 when it increased 11.3% from 2014 (Redman). Plant based dairy is a growing trend within organic grocery, with products like Malt Organics that contain no binders, is gluten free, and are rich in omega 3 fatty acids (Strailey).
Changes in Organic Grocery Worldwide
In 2019 sales of organic fruits and vegetables were the most sold category in the United States, with Denmark and Switzerland leading the way in organic food consumption worldwide overall, per capita, that same year (Statista).
Planet Organic is the largest Soil Association certified organic shop inside the U.K and was the first certified organic grocer in London back in 1995 (Planet Organic). The U.K is following similar trends as the U.S because for 9 consecutive years, beginning in 2012, it experienced continuous growth, even surpassing the non-organic food industry in terms of growth (England).
Organic farming in Europe increased both sales and farmland in 2021, with France leading the way at 2.8 million hectares (Research Institute of Organic Agriculture).
Farm Bills Failed Funding the Organic Industry Properly
The 2018 farm bill achieved great gains in funding however it is still not up to par with the demand for organic food and looks to eliminate the false claims for organic labeling in the 2023 farm bill. This will definitely bring positive changes in organic grocery since so many claims of organic food still turns out to be an unhealthy product. Big companies look to profit from false labeling of "organic" products by finding loopholes in organic policies that allow them to put the organic labels onto their products. Still only more concerned with profit instead of the overall health of the people.
The 2008 farm bill proved to be a failure for the organic grocery industry. The Unites States basically acted like Italians in movies and strong armed the competition for bioengineered food and traditional farming. Really handcuffing the organic food industry financially and keeping prices higher when they should have actually been lower in which increased funding from the Unites States government would have helped to achieve this.
Why should have the U.S increased funding for the 2008 farm bill instead of decreasing their funding?Because the demand for organic food in the U.S has been increasing since the early 90's, so high that the demand actually outweighed the supply of the country, so why would its government reduce funding for an initiative so positive their citizens wanted at the time?
Works CitedGundala, Raghava R., and Anupam Singh. “What Motivates Consumers to Buy Organic Foods? Results of an Empirical Study in the United States.” PLOS ONE, vol. 16, no. 9, 10 Sept. 2021, p. e0257288, https://doi.org/10.1371/journal.pone.0257288.
Organic Trade Association. “2022 Organic Industry Survey Shows Steady Growth, Stabilizing Purchasing Patterns | OTA.” Ota.com, 2 June 2022, ota.com/news/press-releases/22284.
Strailey, Jennifer. “8 Trends Driving Growth in Natural and Organic.” Winsight Grocery Business, Winsight Grocery Business, May 2019, www.winsightgrocerybusiness.com/topics/8-trends-driving-growth-natural-organic.