The US organic food and beverage market could grow by 13 per cent by 2014 on the back of the government’s monetary and regulatory support and increasing acceptance of organic food across the country, according to a new report from research organisation RNCOS.
The report, titled “US Organic Food Market Analysis”, indicates that the organics industry grew by 5.1 per cent in 2009, despite the economic slowdown, while the average annual growth rate ranged from 16 per cent to 21 per cent between 2000 and 2008.
“Being the world’s largest economy and with one of the highest per capita incomes, the US provides most suitable platform for organic food industry to grow and prosper,” explained the market researcher.
“Increasing health awareness, environment protection, food safety, and animal welfare are fuelling the growth of the industry. The demand for organic products and natural produce is growing rapidly thus, making a niche market for the food and beverages industry.”
Fruits and vegetables are still the most dominant market segment, accounting for 38 per cent of organic foods in 2009.
According to the research, organics has been one of the fastest growing industries in the US and is expected to further accelerate market growth in coming years with support from the government, which is paying attention towards developing the industry.
Regionally, meanwhile, the US organics market is still recognised as largely untapped in various states of the country, according to the report.
“Not only in urban areas but in rural parts of the country as well, consumers are showing phenomenal interest in both organic farming and organic food consumption,” the researcher said.
“States like California, Wyoming, Texas, New Mexico, Wisconsin, and South Dakota have shown tremendous market potentials and are being considered as the most attractive investment destinations for organic food business.”
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