Business and Economics: The Organic Food Sector

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In the United States, the organic food sector is one of the fastest growing sectors of agriculture, with annual consumer demand for organic products increasing by 20% per year. It is estimated that 73% of conventional grocery stores and 100% of natural food stores now carry organic produce. As a result, demand for organic produce is growing faster than the supply, which leads to expanding trade gaps. As such, it requires increased attention from policymakers, producers, retailers, and consumers.

US Organic Food Sales

Organic sales: As consumer demand for organic goods increases, price premiums remain high. In the U.S., there are over 20,000 natural food stores and almost three out of four conventional grocery stores that carry organic products. Overall, U.S. organic food sales represent about 4% of the total food market, according to industry sources. However, a common misconception is that there is no typical buyer of these products. However, recent research is starting to shed light on the attitudes and buying habits of the organic consumer.

Like a free-market economy

Despite the growing demand for organic products, the sustainable/organic community still sees organic economics as very similar to free-market economics. The notion that profit-maximizing businesses are the most effective way to sustain the environment and maximize individual self-interest is widespread. Indeed, almost every major corporation has a “socially responsible” program, suggesting to investors that being socially responsible does not compromise the economic bottom line. But this misperception persists, despite the many proponents of organic foods.

Defines organic USDA

Today’s organic industry is booming, but the majority of consumers still do not know what organic is. The USDA defines organic as a labeling term for products, but it does not mean a health claim. Instead, it refers to methods used to grow the crops. Federal standards address the fertilization of the soil, weed control, and animal raising practices. Moreover, the certification also allows for the production of more nutritious and sustainable food, which helps farmers grow their products.

Organic food is a big part

The organic food industry has been thriving for decades. The sales of organic products increased by eleven percent in 2015 compared to the growth in the general food market. In the United States, the organic food industry is now gaining a bigger share of the market and more people are opting for organic goods. There are nearly 20,000 natural and conventional grocery stores in the U.S. that sells only certified organic products.


There are many benefits to choosing organic food. It is not only healthier but is also more expensive. While consumers generally care about purity and safety, the organic food industry is also growing due to concerns about the social and environmental impacts. Additionally, they are concerned about how workers and farm animals are treated. This means that business organizations selling organic foods need to understand and adapt to these concerns. Creating a competitive organic food sector is a necessity, and businesses that choose to ignore it may end up losing customers.