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Subject: Datamonitor Advises to Catch the Green Wave: US Organics
Date: Tue, 3 Nov 1998 06:32:36 -0800
Datamonitor Advises to Catch the Green Wave: US Organics
NEW YORK, Nov. 3 /PRNewswire/ -- Datamonitor's newest consumer goods report
"US Organics 1998" reveals that the US market for organically produced
foods
and beverages is growing faster than expected, despite a lack of national
standards for the products.
The study shows that the organic foods and beverages market grew more than
26 percent to $4.5 billion in 1997. Organic foods and drinks represent the
third wave in mainstream health-foods formulation; the 'low and light'
sector has flattened out, and the nascent nutraceuticals area has been
stymied by
health-claim restrictions. Companies such as Hain Food Group, Horizon
Organic
Dairy, and Cascadian Farms have all positioned themselves successfully for
growth in the emerging field of organics.
Datamonitor consumer goods analyst John Gilmore asserts that some 60
percent
of total organic food sales come from specialty retailers such as Whole
Foods Market and Wild Oats. However, traditional retail formats such as
supermarkets, convenience stores, mass merchandisers, and warehouse clubs
have all begun to feature an increasing number of organic products.
Supermarket
sales of organic foods have grown in excess of 40 percent yearly over the
last five years, with supermarkets doubling their share of the overall
organic
food and beverage market.
According to Datamonitor, much of the growth in the sector is coming from
processed organic foods such as frozen ready meals or organic baby foods.
"This indicates that consumers are ready to incorporate organic foods as
replacements for more traditional food and beverage items," said Mr.
Gilmore.
The future of organic foods and beverages will be based heavily upon the
establishment of national standards set by the United States Department of
Agriculture (USDA) which will provide a definition of an organic product.
The current proposed standards have been so hotly contested by members of
the
industry that the USDA has revised many of their original positions, and
are
ready to offer a new set of regulations by the end of 1998. If adopted,
these standards will help bring a wide variety of currently-regional
organic items into the national eye.
Datamonitor is a leading strategic market analysis and consulting firm that
specializes in the consumer goods, financial services, healthcare,
technology, medical equipment, energy and automotive industries. For more
information please contact Tara Rummell at 212-686-7400, ext. 162 or visit
Datamonitor's Web Site at http://www.datamonitor.com.
11/03/98 09:31 EST http://www.prnewswire.com
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