Introduction to organic market
Stemilt Growers is a Washington-based agriculture company. For it has increased its supply of organic market Cosmic Crisp apples significantly. Especially after completing the organic certification process . The company is anticipating an increase in the volume of organic apples and cherries. Especially in the coming years. That’s following a short crop year in 2022. Stemilt Growers has growers, varieties, and sites. All that permit the production of flavorful organic cherries. Retailers can expand organic sales with a regular promotion strategy. Moreover and by helping consumers find value in organics.
Prices of organic market
That’s even though they are pricier. The demand for organic produce is on the rise. That’s allowing for growth opportunities in the market . Stemilt Growers is increasing its production of organic Cosmic Crisp apples. Especially by transitioning more of its acreage to organic farming .
The North American natural food and organic market is expected to reach $33.2 billion by 2020. That’s up from $27 billion in 2015. All according to a new report from market research firm GlobalData. Sales are forecast to increase by some 13% year over year. Thereby reaching $29.8 billion in 2020. The growth rate is expected to slow, however. That’s to between 3.2% and 3.4% over the next five years. Again and all according to the report.
In addition, the United States is the world leader in natural food and organic products. I mean with a market share of some 40% through its more than 500 organic and natural food certified products, according to a 2015 report from the Food Marketing Institute. While Europe and Western countries have a greater variety of organic and natural products than the United States, they are still a fraction of the size of the U.S. market.
Total Organic Sales
In addition, the United States is estimated to have some $10.2 billion in sales. That’s through the natural food channel in 2015. I mean it’s down slightly from $10.3 billion in 2014. Also and down from $12.6 billion in 2013. This is all according to GlobalData. The U.S. natural food channel includes both retail and wholesale channels. I mean as well as channels that sell at farmers markets and through club stores.
Diversified retailers such as Wal-Mart Stores Inc (NYSE: WMT), Kroger Co (NYSE: KR), Costco Wholesale Corp (NASDAQ: COST), Harris Teeter Stores Inc (NYSE: HTS) and others are major players in the U.S. natural food market.
That’s with sales of some $3.7 billion in 2015. Meanwhile, the organic channel accounts for just 0.7% of the U.S. food market, according to GlobalData. The organic channel includes producers such as Earthfare Markets, Fresh Fields Organics, Stemilt, Fairway Markets and others. Finally, organic sales were estimated at $642 million in 2015. Again, that’s up from $304 million in 2013.
Organically produced crops and foods represent just 1% of total U.S. agricultural production. That’s according to the U.S. Department of Agriculture.
References:  Stemilt anticipates increase in organic this year  Stemilt anticipates increase in organic this year  Options abound in apple category