Organic Food Influence in the Global Market
December 8, 2008
Organic Food Influence on the US Food Industry
US demand for extreme crossways has increased steadily since the early 1990’s. Organic gross gross revenue hasten grown from $1 billion in 1990 to an estimated $21.2 billion in 2007, and are communicate to surpass $25 billion in 2008 (OTA, 2008). Domestically, positive sales now account for 2.8 percent of the economy’s $1 trillion dollars in annual food sales (USDA, 2007). Globally, sales of native products reached al nigh $40 billion dollars in 2007 (Willer, 2008). Mirroring U.S. sales trends, global organic sales are only a fraction of the world food economy of $3.2 trillion (Regmi, 2005). The reasons for the organic industry’s rapid growth rate are complex however; the industry is only a low-spirited fraction of the total food industry domestically and globally.
The salvo in consumer demand for organic products has influenced the size, shape and structure of the organic food industry. Once a niche-market, the organic industry has evolved into industrial organic agribusiness through a complex type of consumer behavior, prove organic farming (COF) practices and corporate consolidation.
The consumer demand for organic products stems from increased awareness of organic health benefits and socially prudent environmental practices (Dimitri & Greene, 2002). These converging trends resulted in the addition and conversion of certified organic farmland worldwide. Consumer demand has also given farm to industrial organic companies like Whole Foods and Earthbound Organics which have led to industry consolidation. Unprecedented demand for organic product has challenged the industry with moving the food from farm to market.
Consumer behavior is the most significant factor contributing to development in the size and shape of the organic industry. Factors driving consumer purchases are environment,...If you want to live on a full essay, order it on our website: Orderessay
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