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Growth of the U.S. Organic Food Industry
With organic products totaling sales of $47 billion in 2016, it may be safe to say the movement is mainstream in the United States.
Of that $47 billion, $43 billion is sales of organic food, which U.S. consumers increasingly demand, despite a higher price tag.
Consumer Shift to Organics
The boost in organic food purchases is driven in part by larger incomes and a healthier economy, according to USA Today. In 2016, the organic market grew by 8.4 percent, a much more rapid rise than the 0.6 percent increase in the food category overall.
In addition to the raw number of organic food sales, there's evidence people are willing to pay more for these goods. Forty-four percent of shoppers will pay 20 percent more for organic vegetables, and 37 percent will pay 20 percent more for organic poultry.
Consumer Buying Choices
According to the U.S. Department of Agriculture, buying organic is a choice that the majority of Americans make at least some of the time. Shoppers are motivated by a number of factors, including health, animal welfare and the environment.
While the majority of organic foods sold are vegetables, the USDA notes that organics exist across a number of food categories. Organic meat, dairy, fish, prepared foods, beverages, bread, snacks and condiments all have traction with consumers.
As an example, sales of organic dips hit $57 million in 2016, while organic spices reached $193 million the same year.
Room for Growth in Organic Market
Organic foodstuffs are increasingly accessible to consumers in all parts of the United States. In additional to natural food stores, organics are now on the shelves in three out of four grocery stores. Organics are easier than ever for consumers to find and purchase.
However, most of the food purchased and consumed by Americans is not organic. Of all the food sold in the United States, only 5.3 percent is organic.
Large-scale food companies have noticed the trend toward organic, with General Mills buying out Annie's and Amazon purchasing Whole Foods. With large food makers making big investments in the organic, sustainable food markets, the upward trend can be expected to continue.
Having the right knowledge on hand makes it more likely your first entry into America is successful.
Why Us
For American-based and international organic food and beverage producers, bringing a product to market is a lengthy and complicated endeavor.
Companies must speak to the unique needs of the U.S. consumer and develop the right partnerships along the supply chain. Food and beverage products in particular are subject to government regulations that restrict all aspects of import, distribution, marketing and sales.
In order to handle all of these aspects effectively, it's essential to have the right expertise.
Orion Business Consulting works exclusively in the organic, biodynamic food and beverage markets. For more than 15 years, Orion has developed food industry partnerships throughout Latin America and the United States.
You may have only one chance to bring your product to the market in the United States. A market failure can prevent you from doing a relaunch later. Having the right knowledge on hand makes it more likely your first entry into America is successful.
Case Study: Chocolate and Coffee
To understand why expertise matters, let's look at two examples of popular organic, biodynamic products: chocolate and coffee.
Chocolate and coffee are staples in the American diet. Increasingly, they are marketed as luxury goods for everyday enjoyment. Simultaneously, U.S. shoppers are aware of the environmental and economic effects of food production at home and abroad.
Conscious U.S. consumers want food grown in environmentally-friendly conditions that follow principles of sustainability and community-building. But in order to enjoy these goods, consumers need access. They also need to understand why one brand's goods are superior to another's.
Retailers have limited shelf space and may receive proposals from several companies selling coffee or chocolate. In order to get into stores, you have to demonstrate why your product stands out. Selling to the distributors and retailers is the first step. The second is marketing the product so it's the most appealing chocolate or coffee on the shelf.
Orion Business Consulting works on both fronts, to educate the consumer and to ensure broad distribution across the United States. Customers can find the product and know what makes it more worthy of their dollars.
Given our expertise and our passion for biodynamic, organic food, we can help make your business a success.