According to the global market research firm RNCOS, the organic food market in the United States is to continue rapid growth that was barely quieted by the economic recession. In their report US Organic Food Market Analysis, RNCOS indicates that during 2000-2008, the average annual growth of industry ranged between 16 and 21 percent. While the overall economic activity dipped in 2009, the organic food segment still saw growth of 5.1 percent. With increasing acceptance of organic foods across the country, the organic food industry is expected to grow at 13% combined annual growth rate during 2010-2014.
Organic fruits and vegetables still make up the largest share of the organic food market. In 2009, the report puts their top share at 38% of the total organic market.
In particular, the report focuses on largely untapped markets for organic foods in various states of the country. “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. 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.”
But it is not only health concerns that are driving consumers to choose organics. Increasingly people are starting to pay attention to what they eat for environmental reasons. Organics also provide better taste and quality of food, which are major driving factors for picky consumers.
According to another RNCOS report, Emerging Organic Food Markets, the overall size of the organic food market is expected to hit $70 billion this year.