We are living in a health conscious world. From drinks to food everything has to be healthy. In this age where health and fitness is a priority for the people, organic food is a blessing in disguise. Organic food farming has been there since 1940’s but gained recognition only in the beginning of the 20th century. The reason for the major leap in the sales was the better advances in biochemistry and engineering that rapidly and profoundly changed farming. Organic foods are made by using methods of organic farming; it does not involve modern procedure such as chemical fertilizers and pesticides. These foods do not use industrial solvents, chemical food additives, artificial materials and conditions, such as chemical ripening, food irradiation, and genetically modified ingredients.
With consumers cutting down their expenses and searching for the lowest price, it was assumed that the demand for organic food would have fallen since the start of 2007 due to the economic downturn. Instead, the organic food industry grew consistently over the years and managed to create a foothold in the market.
A market research report estimates that the Global Organic Food and Drink market will grow At a Compound Annual Growth Rate (CAGR) of 14.3% over the period 2012-2016. It is interesting to know that the US is the largest single market for organic food, but developing countries are the biggest producers of the food.
There are several factors that are responsible for the increase in the demand for organic food such as:
• Awareness in buyers towards chemical free food, organic and natural products.
• Increase in the spending power of the middle class. The consumers are now willing to pay more for good quality food.
• A constant change in the biotechnology which results in better organic food.
• Parental concerns over the harmful effects of pesticides, antibiotics and hormones on children, and avoiding processed food and artificial ingredients.
• People’s perception that the food tastes better than normal food.
• More advertising and promotions of the food.
• Easy availability of the products in supermarkets.
In today’s polluted and contaminated environment consumers are in constant look out for organic products. Organic food and beverages market have struck a chord with the people. By using no pesticides and artificial flavors, the food grown is healthy and more nutritious. There’s a need to stay fit and healthy on everyone’s mind and they are ready to pay a price for it. The advancement in the technology and new innovative products are regularly hitting the market and therefore organic food Industry is flourishing.