The global market for organic foods is expected to expand by 23 percent in
2001 to reach US $26 billion. Speaking at Food Ingredients Europe in London,
Mr. Amarjit Sahota, founder of Organic Monitor, stated that according to conservative
projections, global sales are to approach US $80 billion in 2008.
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The highest market growth has been observed in Europe this year. Market revenues
are forecast to expand by a third in 2001 to reach US $12 billion due to high
growth in the principal markets of Germany, Italy, France and the UK. In all
these countries, except the UK, high growth has been due to organic foods migrating
from specialist to mainstream marketing channels. The entry of the supermarkets
is widening availability of organic foods, and coupled with raised consumer
interest, sales are increasing at a rapid rate.
The US market is also showing high growth in 2001 and it represents the majority
of the North American US $9.7 billion revenues. The US and Canadian markets
have been given a lift by the introduction of formal national standards for
organic production in the last year. High growth is forecast as consumer awareness
of organic foods continues to rise in the region.
Japan has the third largest market for organic foods after the EU and the US
and it accounts for the bulk of Asian market revenues. High growth is being
observed in Singapore, Hong Kong, and Taiwan, however these markets remain a
fraction of the size of the Japanese market.
Oceania, which accounts for almost a half of global organic farmland, has a
market for organic foods that is estimated to be worth US $190 million. There
is over 7.6 million hectares of organic farmland in the continent and most of
the organic food production is for export markets.
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By GlobalDataMr. Sahota expects most of the increase in organic farmland to occur in developing
countries in the future. He states that an increasing number of developing countries
are looking at organic farming as a viable form of sustainable agriculture,
and their governments are attracted to the economic benefits of organic production.
The organic food industry is forecast to continue to show high growth in the
coming years, however it faces many challenges. Mr. Sahota commented, ‘Major
challenges the industry faces are certification fragmentation, preventing fraudulent
business practices, protection of the price premium, and affirming the role
of the government during industry development.’
About Organic Monitor
Organic Monitor, a strategic research & marketing consulting company, continuously
tracks the international organic food industry for market trends & developments.
With headquarters in London, we have consultants that are tracking developments
in the major geographical regions of the world. Visit us at www.organicmonitor.com
