What do we consider THE organic food market?

Friday, May 14, 2010 - 12:05 pm

Over the last ten years we've witnessed an incredible growth of the American organic food market. Green, clean products are now a lot more visible with mainstream retailers particularly since they bring clear health benefits and a better hope for the environment. Americans are presently the most numerous consumers of organic food in the world. The second largest organic food market in the world is the now the Western European one.

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More and more hectares of farmland are now managed organically. Even in third world countries, producers have switched to organic farming because of the numerous advantages brought by exports. Lots of producers have grown a business to provide products to the foreign market rather than to the local one. There are financial aids and government products that support the development of such

agriculture sectors.The biggest growth rate for the organic food market was reported between 2002 and 2008, and although the expansion continues it takes place at a slower rate than before. Regional markets become a crucial element in the equation, because local farms mainly supply their neighborhoods. Success on the local market depends on the nature of the crops and the demand for organic products. If sales are not directed locally, farmers try to export and even sell on the Internet to make sure they sell their products.

Recession has affected so many countries worldwide, and the organic food market has registered slower growth rates. It is in such time that the commitment of the consumer to organic food has been seriously tested. Yet, even if the accelerated growth has decreased, the sales have remained positive, without a drop for organic food sales in 2008-2009. It seems that many people's wallets have remained green even in critical moments. Great Britain has been the organic food market most affected by the recession.
Consumers now have to decide whether to cut back on organic food or not. A solution here would be to get a cheaper offer of organic products that would better compete with that of traditional foods. Chances are that this will happen in the near future, because a drop in prices would encourage consume and create the premises for more extensive production.