North America is the largest market for organic foods in the world. Sales for organic food and beverages have grown from $43.3 billion in 2015 to $53.8 billion in 2019. With a CAGR of 4.6%, Ecovia Intelligence predicts organic food revenues to reach $66.8 billion by 2024!
This market growth is fueled by growing consumer demand for ecological and health foods, expanding the distribution of organic products in mainstream retailers, and increasing the popularity of private-label organic products. Kroger, the second-largest food retailer, announced that sales of its Simple Truth private label products grew to over $2 billion in 2017. The Simple Truth brand is comprised of organic, natural, and free-from products.
The COVID-19 lens altered the trajectory of trends and has brought new interest in better for you. The pandemic shifted focus from self -improvement to increased interest in immunity, highlighting that an individual’s health is vitally dependent on the health of others and brought a refocus on the importance of the strength and vitality of the whole household. What do these changes mean for the food and beverage space? This shift will drive consumer interest in personalized nutrition, supplements for immunity, functional botanicals for natural protection, and we will see a rising demand for organics. Consumers are looking for transparency, clean labels, and sustainable sourcing.
With a pre-pandemic CAGR of 4.6% and a newfound interest in organic products spurred by the pandemic, the time is ripe to move into the organic market space. As you prepare to move into this space, you must understand how to apply organic claims and organic labeling for flavors. Updated regulations effective at the end of 2019 require the use of a certified organic flavor if it is commercially available.
At Givaudan, we strictly adhere to the National Organic Program (NOP) regulations and employ experts dedicated to organic flavor certification. We have a catalog of certified organic flavors and our flavorists will create custom flavors to meet your specific base and target audience needs. Understanding organic claims, and flavor labeling requirements can be tricky, but Givaudan is prepared to guide you as you launch and grow your organic product in this new and different pandemic-impacted market space.
If you need any assistance as you prepare to launch or grow your organic product line, please feel free to reach out to us at firstname.lastname@example.org.
Brought to by Guest Author:
Amber Cartwright, Senior Product Manager
Amber joined Givaudan in 2010 and has focused on our TasteSolutions®, TasteEssentials® Tea, TasteEssentials® Coffee, TasteEssentials® Citrus, and Organic platforms.
Prior to joining Givaudan, Amber attended Miami University (BA Chemistry) and North Carolina State University (MS Analytical Chemistry) and worked in the beverage and flavor industries.
When not at work Amber enjoys solving word puzzles, baking, reading, watching her children become responsible adults, and walking her dogs while listening to podcasts.