North America Is Now World’s Largest Organic Market

According to a new report from Organic Monitor, a specialist research, consulting, and training company that focuses on global organic and related product industries, the North American organic food and beverage market has overtaken Europe to become the biggest organic market in the world.

Globally, the organic food and drink market has seen growth rates slow during the recession to just under 5% per annum, when it had previously had several years of double-digit growth. But Organic Monitor’s Global Organic Food & Drink Market report said that the sector is beginning to pick up.

“Healthy growth rates are resuming as ‘mainstreaming’ of organic products continues. A major driver of market growth in all geographic regions is increasing distribution in mainstream retailers,” the market research organization reported.

The report found consumer perception that organic foods are expensive continues to hinder growth in the sector, despite a price differential as low as 15% for some product categories, it said. Nevertheless, higher prices for organic products restrict demand to wealthy consumers.

The report also noted that despite fast growth in the amount of organic farmland in North America, production has not increased quickly enough to keep up with demand, leading to a shortfall in supply filled by imports from other countries. Latin America in particular has become a major source of organic fruits, vegetables, meats, seeds, nuts, and ingredients for the North American market.

More information on its report is available at www.organicmonitor.com.

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