Growing the Organic Market<br />Christine BushwayExecutive Director / CEOOrganic Trade Association<br />CCOF Annual Conven...
Organic Market 2010<br /><ul><li> Macro Trends in US 2010
 US Organic Consumer in 2010</li></ul>Challenges<br />Solutions<br />
Three quarters of US families have purchased at least some organic products<br />3<br /><ul><li>As in 2009, we’ve construc...
Newly Organicfamilies, those who only began purchasing organics in the past two years, comprise about 3 in ten US househol...
Experienced Organics, encompassing about 2 in 10 families (20% in 2009, 21% in 2010),first starting buying organics up to ...
Seasoned Organics have been buying organics for more than 5 years and in some cases up to 15 years.  They represent about ...
Non-Buyers, about 3 in 10 households, neverbuy organic products.
The size of each buyer segmentremained consistentwith 2009 findings.</li></ul>Newly Organic<br />ExperiencedOrganics<br />...
US Families are buying more organicsthan ever before<br />4<br />Purchases of Organic Foods Compared to 12 Months Ago<br /...
One third say trust in organic products has increased over the past year<br />5<br />Changes in Trust of Organic Labeling<...
Organic Market Size and Growth<br />Food 93%<br />7%<br />Non-Food<br />
Trends in U.S. Organic Agricultural Production<br />2008 Organic Production Survey*<br />14,540 organic farms & ranches in...
Trends in U.S. Organic Agricultural Production<br />U.S. organic farms on average have higher sales, higher production exp...
Recent Trend Sales: Jul. – Sept. 2010<br />13 week dollar % change: <br />Organic Food Sales UP 10.7%ConventionalFoodSales...
Trends- Local and Regional Food Systems<br />
Market Update – Local, Regional, Direct to Consumer<br />
Reports Cause Consumers to Question<br /><ul><li> President’s Cancer Panel
 ADHD Research
 Center for Science in the Public Interest’s warning re: food dyes
 FDA guidance on antibiotics for food-producing animals</li></li></ul><li>Challenges<br />Economic climate<br />Competitiv...
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Christine Bushway organic industry trends CCOF Annual Convention feb 19_2011

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Organic State of the Union

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  • The market for organic foods has rebounded in 2010 after slowed growth during the reception.
  • In December 2010, OTA launched a unique online advertising campaign, “Connect the Dots,” to show consumers how organic is the solution to their increasing concerns about what’s in their food and how it is produced. Ads appear on Google and Facebook, and in proximity to online news stories from thenation’s top daily papers such as The New York Times and Washington Post. Ads then drive traffic to the Organic. It’s Worth It. Overall goals are based on shifting and optimizing campaigns according to relevant news and trends. A big spike in traffic occurred during December’s “news” around GE Alfalfa and the Food Safety Modernization Act.The landing pages also encourage newsletter sign-ups, provide “Quick Facts” that consumers can directly post to their Facebook and Twitter pages, and direct consumers to find organic products via OTA’s member directory, The Organic Pages Online.
  • On January 27, the Obama Administration made the damaging decision to approve the unrestricted cultivation of genetically engineered (GE) alfalfa.
  • Christine Bushway organic industry trends CCOF Annual Convention feb 19_2011

    1. 1. Growing the Organic Market<br />Christine BushwayExecutive Director / CEOOrganic Trade Association<br />CCOF Annual Convention - Education Conference & Annual MeetingFebruary 18-20, 2011 - Ventura Beach, CA<br />
    2. 2. Organic Market 2010<br /><ul><li> Macro Trends in US 2010
    3. 3. US Organic Consumer in 2010</li></ul>Challenges<br />Solutions<br />
    4. 4. Three quarters of US families have purchased at least some organic products<br />3<br /><ul><li>As in 2009, we’ve constructed a profile of “organic buyer groups” among US families using self-reported organic buying data.
    5. 5. Newly Organicfamilies, those who only began purchasing organics in the past two years, comprise about 3 in ten US households (32% in 2009, 36% in 2010).
    6. 6. Experienced Organics, encompassing about 2 in 10 families (20% in 2009, 21% in 2010),first starting buying organics up to 5 years ago.
    7. 7. Seasoned Organics have been buying organics for more than 5 years and in some cases up to 15 years. They represent about 2 in 10 households (21% in 2009, 16% in 2010.)
    8. 8. Non-Buyers, about 3 in 10 households, neverbuy organic products.
    9. 9. The size of each buyer segmentremained consistentwith 2009 findings.</li></ul>Newly Organic<br />ExperiencedOrganics<br />Seasoned Organics<br />Non-buyers<br />Q. When did you first buy organic products, if ever?<br />(n=1197)<br />(n=763)<br />
    10. 10. US Families are buying more organicsthan ever before<br />4<br />Purchases of Organic Foods Compared to 12 Months Ago<br />Compared to 12 months ago…<br />Buying more<br />Buying same amount<br />Buying less<br />Do not buy organics in this category<br />2009<br />(n=1197)<br />2010<br />(n=763)<br />Base: Total parents <br />Q: Compared to 12 months ago, are you buying more, less or the same amount of organic foods in general?<br />
    11. 11. One third say trust in organic products has increased over the past year<br />5<br />Changes in Trust of Organic Labeling<br />Increased<br />Decreased<br />Stayed the same<br />Total parents<br />87%<br />2009<br />92% *<br />2010<br />Organic Buyers<br />85%<br />2009<br />2010<br />91% *<br />Base: Total parents<br />Q: Compared to one year ago, has the extent to which you trust that products labeled as “organic” really are organic…<br />
    12. 12. Organic Market Size and Growth<br />Food 93%<br />7%<br />Non-Food<br />
    13. 13. Trends in U.S. Organic Agricultural Production<br />2008 Organic Production Survey*<br />14,540 organic farms & ranches in U.S.<br />4.1 million acres<br />Organic farms in all 50 states<br />78% of farms report planning to maintain or increase organic production levels over the next five years.<br />* The 2008 Organic Production Survey conducted as a follow-on to the 2007 Census of Agriculture by the U.S. Department of Agriculture’s (USDA’s) National Agricultural Statistics Service (NASS).<br />
    14. 14. Trends in U.S. Organic Agricultural Production<br />U.S. organic farms on average have higher sales, higher production expenses, and higher operating profit than U.S. non-organic farms<br />* The 2008 Organic Production Survey conducted as a follow-on to the 2007 Census of Agriculture by the U.S. Department of Agriculture’s (USDA’s) National Agricultural Statistics Service (NASS).<br />
    15. 15. Recent Trend Sales: Jul. – Sept. 2010<br />13 week dollar % change: <br />Organic Food Sales UP 10.7%ConventionalFoodSales UP .7%<br />13 week unit % change:<br /> Organic units UP 11.1%ConventionalUnits UP .5%<br />FDM ending 10/02/2010<br />
    16. 16. Trends- Local and Regional Food Systems<br />
    17. 17. Market Update – Local, Regional, Direct to Consumer<br />
    18. 18. Reports Cause Consumers to Question<br /><ul><li> President’s Cancer Panel
    19. 19. ADHD Research
    20. 20. Center for Science in the Public Interest’s warning re: food dyes
    21. 21. FDA guidance on antibiotics for food-producing animals</li></li></ul><li>Challenges<br />Economic climate<br />Competitive pressure from conventional<br />Political climate & budget cuts<br />
    22. 22. Connect the Dots<br />Connect the Dots<br />Natural and Organic – Consumer Confusion Persists <br />One third of all consumers don’t know the truth about organic standards, as it relates to organic foods they see in retail outlets.<br />%<br />Mintel survey September 2009<br />SOURCE: MINTEL “Organic Food and Drink Retailing U.S. Report 2009” produced in collaboration with SPINS<br />
    23. 23. Connect the Dots<br />Online ad campaign positions organic as the solution<br />Ads appear on Google and Facebook, and newspapers such as The New York Times and Washington Post<br />Ads drive traffic to www.OrganicItsWorthIt.org<br />First 60-days:<br /><ul><li>22 million+ impressions
    24. 24. 25,000+clicks/web visits
    25. 25. 5,000+ social media fans/followers</li></li></ul><li>GE Alfalfa Decision<br />Obama Administration approves the unrestricted cultivation of genetically engineered (GE) alfalfa, sugar beets and amylase corn in three weeks<br />GE alfalfa can now be planted without any federal requirements to prevent contamination of organic and non-GE crops<br />OTAcontinues work to protect organic<br />Consumer Action Alert distributed via email, social media, blogs, newsletters<br />25,000+ messages (and counting!) messages sent to the White House<br />
    26. 26. Solutions- Policy and Political Pressure<br />1. Protect our base ($)<br />2. Push the envelope (policy)<br />3. Grassroots engagement <br />Build New Relationships | Nurture Old Friends<br />
    27. 27. Solutions- Advance Organic Together<br />
    28. 28. Solutions- Advance Organic Together<br />
    29. 29. Solutions- New Data Continues to Point to the Value of an R&P Order<br />
    30. 30. Thank You<br />Christine BushwayExecutive Director / CEOOrganic Trade Association<br />cbushway@ota.com <br />Additional Resources<br />Organic Trade Associationwww.OTA.com<br />Organic business directorywww.TheOrganicPages.com<br />Transitioning to organic productionwww.HowToGoOrganic.com<br />Directory of U.S. organic exporterswww.USOrganicProducts.com<br />Consumer educationwww.OrganicItsWorthIt.org<br />
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