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