Healthy Outlook for Organic Food Market

It’s been a bumpy road for the organic food market over recent years. Following ‘Horsegate’ and various other mishaps in the food industry, buyers have become more label-savvy, leading to some confusion over the ‘organic’ claim on food labeling.

By Daisy Phillipson

But now it appears that organic is a trusted term, meaning products using ingredients that have not been treated with chemicals. This has certainly put the market on a more steady footing and it appears that sales of organic food and products are on the rise.

According to a report published by Mintel earlier this year, stabilization of food prices, a rise in consumer spending, increased organic NPD and the Organic Trade Board’s biggest ever campaign are all contributors to a healthy outlook for the organic food market.

Emma Clifford, Senior Food Analyst, Mintel, states: “Organic NPD in the food and drink market returned to growth in 2013, rising further in 2014. The share that organic launches captured of all new food products entering the market increased by 2.3 percentage points over 2012-14 to 6 per cent. This corresponds to a 17 per cent rise in the number of organic food launches. The activity accelerated in 2014, with an annual increase of 13 per cent compared to that of 3 per cent in 2013.”

But what does this mean for the bakery industry? Well it seems that bakery takes a high 10.5 per cent share of the market, meaning that NPD with organic bakery products is more than likely a good idea.

“That companies are now investing in more organic food launches signals a growing confidence in the market. An uptick in the availability and choice of organic options, after years of reduced shelf space, should in turn help to support the return to growth,” says Clifford.

There certainly has been proof in the industry that companies are now making their move over to organic. Flower Foods Inc. recently announced an agreement to acquire Dave’s Killer Bread, a company named to have the best-selling organic bread in the US.

Additionally there have been a plethora of new product launches in the bakery sector from a range of different sized companies. Luke’s Organic recently produced Organic Grain and Seed Chips, a product that is organic, non-GMO, gluten-free and allergen-free, and is made with organic grain and seed blends.

Kellogg’s Kashi brand also released this year five new organic, non-GMO project verified breakfast items including Kashi’s Overnight Muesli, Organic Promise Sweet Potato Sunshine Cereal, Organic Promise Sprouted Grains Cereal, Organic Promise Granola and Kashi Organic Chewy Granola and Seed Bars.

One thing is clear – the organic food market is looking as healthy as its products. It is an extension of the rising health food industry and is one that is here to stay.

Emma Clifford concludes that there is confidence in the market as shown with NPD and investment. Additionally, consumer spending will support the recovery, which should also benefit the organic market. So for all you manufacturers, get innovating with new ingredients and ideas, as this is where the path is leading.