Evolution of the Organic Food Market

Abstract: Organic production systems are based on specific and precise standards of production that are easy to sustain in terms of social, environmental and economic aspects. "Organic" is a labeling term that denotes products produced under organic production standards and certified by a legally constituted body or authority in this regard. The main purpose of organic agriculture is to optimize the health and productivity of interdependent communities of soil, plants, animals and humans. In 2010, the continent with the largest cultivated area of organic production was Australia/Oceania, with over 12.1 million ha up by 299,884 ha from 2005; followed by Europe with 10.0 million hectares up by 3.08 million ha compared to 2005; Latin America with 8.39 million ha compared to 2.58 million hectares in 2005; Asia, which decreased by 2.7 million hectares to 115,281 ha in 2005; North America, 2.6 million ha up by 453,399 ha from 2005; and Africa, with about 1.07 million ha, up  by 185,325 ha compared to 2005. Global sales of organic food and beverages have also grown in an accelerated way, reaching $63 billion (USD) in 2011. The market expanded three-fold between 2000 and 2011, from $17.9 billion to $63 billion. The organic demand is concentrated in North America and Europe, these two regions comprising 96% of the global revenues. The European organic food and beverage market is the largest and most complex in the world, estimated at $28 billion in 2010. Sales of organic products and beverages in North America continues to grow, with retail sales estimated at $17.3 billion in 2006, $23 billion in 2008, $26.3 billion in 2009, and $28.6 billion in 2010. The Asian market in 2006 had retail sales of around $780 million, by by 2009 had reached about $1 billion. Latin America is a major producer and exporter of organic products, however, internal markets are beginning to slowly develop. Almost all organic food production in Africa is for the export market. As organic food production continues to rise across the globe, some sectors are expected to experience overproduction.

Reference: Orbi, M. (2013). Aspects regarding the Evolution of the Organic Food Market in the World. Research Journal of Agricultural Science, 45(2), 201-209. http://www.cabdirect.org/abstracts/20143012874.html;jsessionid=8EC504FB63BC9A8434741D9081C53EEC