USA takes the lead in the global organic food market

Market Expertz   |     January 17, 2019


The global organic food market is now a colossal phenomenon with almost 180 countries participating in the business. The US organic food sphere consists of multitudinous companies and brands. The research titled “the World of Organic Agriculture Statistics and Emerging Trends 2018” by FiBL and IFOAM Organics International highlights a wide range of trends in the organic food business and the countries that partake in the same. The report indicates that the USA is currently the largest market for organic food with its value exceeding 26 billion USD.

The US organic food market has a plethora of organic food retailers but here are some of the most significant ones. Walmart Inc.’s recorded revenue for the year 2017 was 500 billion USD, making it the largest company (by revenue) in the world. Walmart holds more than 11,000 outlets, which are spread across USA and more than twenty other countries, and is planning further expansion.  Kroger, another wholesale retail store sells organic products under its in-house organic brand along with other locally grown products. Target, a retailer store valued at approximately 71 billion USD, sells organic products under the name ‘Simply Balanced’ with other local products.

The US organic food world has seen some new developments in the past few years. In April 2018, Walmart announced the merger of its subsidiary Asda, which is a British retail supermarket with Sainsbury's; another retailer in the United Kingdom is on the table. Notably, Asda and Sainsbury’s are the second and third largest supermarkets in the UK respectively. In 2017, tech-giant Amazon bought the organic food retailer Whole foods (certified by the USDA). Kroger has tried its hands at various new ventures, too. The retailer collaborated with the pharma company Walgreens to sell Kroger’s products in its stores. Kroger also teamed up with Nuro, the company that developed the world’s first driverless delivery vehicle, to initiate a pilot program for driverless home delivery in August 2018. These developments are prominent in the USA organic food business and might have a propelling effect on the market’s future growth. This growth might face a few roadblocks in case a new regulation surfaces and restricts the business. One such rule is the National List of Allowed and Prohibited substances for Organic handling or production published by the USDA, which catalogues the products that can and cannot be a part of the production of organic foods and it would be difficult to prognosticate the impact of this event on the market. 

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