Industry leaders highlighting the woes of US farmers in keeping pace with the endless appetite of Americans for organic foods.
Reuters published news of industry leaders highlighting the woes of US farmers in keeping pace with the endless appetite of Americans for organic foods. They are urging federal officials to hike expenditure on crop research and market development.
With a growth rate of almost 20 percent annually, sales of organic food were expected to reach $16 billion in 2006, or around 3 percent of all US food spending according to the Organic Trade Association statement at a pair of Congressional hearings.
The size of the US market has more than doubled from 2000 to 2006. The increase is attributed to the increasing worries of consumers regarding food supply. With practices changing in agriculture and food industries, more organic products are being made.
The success of natural and organic foods in the US is partly credited to packaging. Apart from the quest for environmentally friendly packaging materials for US consumers, numerous successful products have specialized in packaging that offers convenience in carrying and consumption due to the active life that consumers of these natural and organic foods lead.
The demand for organic foods continues to grow not just on account of increasing awareness of health and environmental concerns of consumers, but also due to more goal-oriented and aggressive promotion by the major retail groups. In addition product development by food processors and manufacturers apart from favorable government policies in several nations also contribute to the increasing demand for organic food in the country.
The impact of increased demand has also been seen on production and relatively lower prices. However, generally organic foods cost more than non-organic products. But cost concerns will not affect the rise in consumer numbers for health foods ensuring continuing expansion in the market for organic products.
A RNCOS research analyst points out that there are clear signs of continued expansion in the organic foodstuff market in the country for a fairly long duration. For one the growth in consumer interest in healthy food and environmentally friendly products continues with increasing number of people preferring organic products. Another factor is the aggressive promotion of organic foodstuff by major retailers thanks to extensive advertising and competitive prices.
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