The US market for organic foods and beverages is growing by nearly 20% annually and is expected to generate sales of US$32.3bn by 2009, according to new research.


A new report from market research publisher Packaged Facts says the organic industry has been experiencing annual growth between 17 and 22% over the past few years, compared to just 2 to 3% growth in the conventional food industry.


The mass-marketing of organic foods in supermarkets – which accounted for 37% of organic sales in 2003 – and expansion by mainstream food companies into the organic market are spurring more growth. Organic products are now marketed nationwide in major supermarkets, including even Wal-Mart, and are available in almost every category of food and beverage.


“Organic foods and beverages have come of age,” said Packaged Facts’ Don Montuori. “Many of the obstacles to wider market penetration – price, quality, distribution – are starting to breakdown, and with the full implementation of the national organic standard, consumers are starting to recognise, seek and find organic products.”

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