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Outline

US Organic Market Overview Presentation at FoodEx Japan By Stephanie Wells Organic Trade Association

Organic Agriculture: World View According to IFOAM there are currently more than 31 million hectares under organic production worldwide. In 2004, the market value of organic products worldwide reached 27.8 billion in US dollars.

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Organic Agriculture Worldwide Organic agriculture is now practiced in 120 countries of the world. There are over 623,000 organic farms worldwide.

The U.S. National Organic Program Certification is the key to the US National Organic Program Three main requirements     Methods/materials must meet standards     Clear and ongoing documentation     Paper trail tracing product back

US Organic, a Growing Marketplace United States – 20% growth per year since 1990 United States is the largest market for organic foods and beverages in the world. (The World of Organic Agriculture 2006) U.S. sales in 2005 – approximately $14.5B

Growing Demand for All Kinds of Organic Products

Growth on the Farm United States 1.2 million acres in 1997 2 million acres in 2001 2.2 million acres in 2003

Organic Fiber

Organic Fiber Sales Total Growth 22.7% in 2003 Projected Growth 15.5 annually  2004-2008 Clothing 20% in 2003 Clothing 15% annually  2004-2008 Other Products 13% 2003 Other Products 15% annually  2004-2008 Source:  OTA’s 2004 Manufacturer Survey

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Market Statistics 65% of U.S. population purchases organic products. 10% are frequent purchasers. 71% of Canadians have tried organic foods. 18% are frequent purchasers.

Where Organic is Purchased

Reasons for Purchasing Organic Consider organic products to be healthier Concerns about food safety (bacterial contamination and chemical pesticides) Make the connection between environmental pollution and agricultural practices The more educated the shopper, the more likely they are to make an organic purchase

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Who is the Organic Shopper? 70% are female 37% have children under 18 living in the household 33% of occasional organic buyers are between 40-59 There is both a high proportion of frequent organic buyers under 30 and over 60 31% of frequent buyers make under $15,000 a year The mean income for frequent organic buyers is $43,280, while the mean income for occasional buyers is $50,240.

Organic Product Category Adoption Third area of adoption Frozen foods Breads (Artisan primarily) Pasta sauces, canned tomatoes, salsa Fourth area of adoption Canned goods Bulk goods First area of adoption Produce Dairy Non-dairy beverage (soy) Baby food Second area of adoption Juice Single serve beverage Meat/Poultry Cold cereal Snacks (chips, pretzels)

Organic Product Category Adoption Second area of adoption Juice Single serve beverage Meat/Poultry Cold cereal Snacks (chips, pretzels)

Organic Product Category Adoption Fourth area of adoption Canned goods Bulk goods

Forces Driving Organic Growth Greater availability Improved taste and quality National organic standards More competitive pricing Improved trade conditions Financial investments in organic & natural companies Large consumer package goods companies entering the market

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Brands, Mergers & Acquisitions Small Planet Foods General Mills Seeds of Change M&M Mars White Wave, Horizon Dean Foods Stonyfield Farm Group Danone Tyson’s Frito-Lay Heinz Ben and Jerry’s Campbell Soup Co. Store Private Labels

Response to USDA Organic Labels

Organic Trade Association at  USA Pavilion Visit our booth to learn more about US organic products and exhibitors. Learn about Organic Trade Association’s “Organic Export Directory” at www.usorganicproducts.com

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For Further Information Organic Trade Association Web Sites www.ota.com www.usorganicproducts.com National Organic Program Web Site www.ams.usda.gov/nop Organic Materials Review Institute Web Site www.omri.org