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Since the implementation of the National Organic Standards in 2002, the USDA organic logo has provided an easy way for consumers to recognize organic products and to feel confident that they are buying a product that was raised, manufactured, and distributed according to the consistent, uniform standard set forth by the National Organic Program (USDA, Agricultural Marketing Service, 2000).The following organic labels are permissible:

100 percent organic: Product contains 100 percent organically produced ingredients, excluding added water and salt. The label is allowed to include the USDA organic seal and/or certifier’s seal(s).

Organic: Product contains at least 95 percent organic ingredients, not counting added water or salt; does not
contain added sulfites; and may contain up to 5 percent of nonorganic ingredients. The label may state “Organic”, “X percent organic” or “X percent organic ingredients,” and display the USDA organic seal and/or certifying agent seal(s).

Made with organic ingredients: Product includes at least 70 percent organic ingredients, not counting added water and salt; does not contain sulfites (except for wine which may contain added sulfur dioxide); and may contain up to 30 percent of nonorganic ingredients, including yeast. The label may state “Made with organic ____ (specified ingredients or food groups),” “X percent organic” or “X percent organic ingredients” and display the certifying agent seal(s), but cannot show the USDA organic seal.

Claim that product has some organic ingredients: The product contains less than 70 percent organic ingredients, not counting added water and salt. The label may list which ingredients are organic in the ingredient statement and display “X percent organic ingredients” when organically produced ingredients are identified in the ingredient statement. The label cannot display either the USDA organic seal or the certifying agent seal.

Source: USDA, Agricultural Marketing Service, National Organic Program.

• When asked whether they display the USDA Organic seal on ‘any’ of their products,
61% of survey respondents answered in the affirmative.
• Of the 39% of survey respondents that do not currently display the USDA Organic seal,
53% reported that they intend to display the USDA Organic seal on their products in
the future.
• 17% of survey respondents reported that USDA labeling requirements and certification
programs had “dramatically increased their ability to generate sales of organic
products.” Thirty-eight percent reported that labeling increased organic sales somewhat,
43% reported that labeling and certification had not affected sales, and 1% reported that
it had decreased sales.
• 52% of survey respondents reported that a lack of dependable supply of organic raw
materials has restricted their company from generating more sales of organic products.
• Nearly half (49%) of survey respondents’ organic sales were classified as 95+%
organic, while 32% of sales were reported as 100% organic and 19% as 70+% organic.

Other organic products, or non-foods, had consumer sales of $744 million in 2005 and
growth of 32.5%. Roughly 38% of organic non-food sales, or $282 million, were
personal care products. Compared to organic foods, which had a penetration rate of 2.5%
in 2005, organic non-foods are still emerging as a category and accounted for only 0.22% of total sales in their sectors in 2005.

Fruit and vegetables accounts for by far the largest portion of sales at 39% of the $13.8
billion total. Understandably the more established categories like beverages (includes
soymilk) and fruit & vegetables grew less quickly in 2005 than less established
categories. Smaller, less established categories like condiments and meat & poultry grew
at noticeably higher rates in 2005 than more established categories. Data was collected
and analyzed in 71 individual food sub-categories that comprise the eight major food
categories.

As organic foods become part of the American mainstream, they are increasingly found in more
mainstream retail establishments. Although the independent natural grocery or health foods store
laid the tracks for the organic foods manufacturer and supplier, sales have since penetrated many
other channels to the point that independent natural food stores represented less than 25% organic
food sales for the first time in 2005. The largest natural food chains (led by Whole Foods Market
and Wild Oats grocery retailers) represent an estimated $3.2 billion of total organic food dollar
sales, so together the natural channel represented 47% of U.S. organic food sales in 2005.
Roughly 46% of total organic food dollar volume was sold through the mass-market
channel, which includes supermarkets/grocery stores, mass merchandisers, and club
stores. The remaining 7% was made up of farmer’s markets, food service and other non-
retail-store sales.

The $13.8 billion in consumer sales of organic foods in 2005 represented 2.5% of total
U.S. food sales, a ‘penetration rate’ that has grown from 0.8% in 1997. Organic foods
have shown fairly consistent annual growth rates of 15% to 21% since 1997, when fairly
comprehensive data was first available. Anecdotal data based on historical surveys and
interviews with long-time participants in the organic foods business place growth estimates in a similar range of nearly 20% annually since 1990.

The U.S. organic industry grew 17% overall to reach $14.6 billion in consumer sales in
2005. Organic foods, still by far the largest and most clearly defined part of the organic
industry, grew 16.2% in 2005 and accounted for $13.8 billion in consumer sales. Other
organic products or ‘non-foods’—including personal care products, nutritional
supplements, fiber, household cleaners, flowers, and pet food—grew 32.5% from a much
smaller base of sales and totaled $744 million in U.S. consumer sales in 2005.

New Hope Natural Media
(A Division of Penton Media, Inc.)
1401 Pearl Street
Boulder, CO 80302
Tel: 303-939-8440
Fax: 303-939-9886

http://www.newhope.com

(Publications: Natural Foods
Merchandiser,
Functional Foods & Nutraceuticals,
Nutrition Business Journal, Delicious
Living, Nutrition Science News)

The Food Institute
28-12 Broadway
Fair Lawn, NJ 07410
Tel: 201-791-5570
Fax: 201-791-5222

http://www.foodinstitute.com

(Food Institute Report)

Natural Business Online
P.O. Box 7370
Boulder, CO 80306-7370
Tel: 303-442-8983
Fax: 303-440-7741

http://www.naturalbusiness.com

(Natural Business)

Organic & Natural News
3300 N. Central Avenue, Suite 2500
Phoenix, AZ 85012
Tel: 480-990-1101
Fax: 480-990-0819

http://www.organicandnaturalnews.com

(Organic & Natural News)

Source : International Trade Centre

OTA
(Organic Trade Association)
60 Wells Street
P.O. Box 547
Greenfield, MA 01302
Tel: 413-774-7511
Fax: 413-774-6432
info@ota.com

http://www.ota.com

ORCA
(The Organic Coffee Association)
830 Everett Avenue
Oakland, CA 94602

http://www.orcacoffee.org

OCA
(The Organic Consumers Association)
6101 Cliff Estate Rd
Little Marais, MN 55614
Tel:  (218) 226-4164
Fax: (218) 226-4157

http://OrganicConsumers.org/

Organic Alliance
400 Selby Avenue, Suite T
St. Paul, MN 55102

http://www.organic.org

Independent Organic Inspectors
Association
PO Box 6
Broadus, MT 59317
Tel: 406-436-2031

http://www.ioia.net

TransFair USA
1611 Telegraph Ave. Suite 900
Oakland, CA 94612
Tel: 510-663-5260
Fax (510) 663 5264

http://www.transfairusa.com

Source : International Trade Centre

Whole Foods Market, Inc.
601 N. Lamar Suite 300
Austin, TX 78703
Tel: 512-477-4455

http://www.wholefoodsmarket.com

Wild Oats Markets, Inc.
3375 Mitchell Lane
Boulder, CO 80301
Tel: 303-440-5220
Fax: 303-928-0022

http://www.wildoats.com

The Kroger Co.
Cincinnati, OH

http://www.kroger.com

Albertson’s
Boise, ID

http://www.albertsons.com

Safeway Inc.
Pleasanton, CA

http://www.safeway.com

Ahold
Chantilly, Virginia

http://www.ahold.com/operatingcompanies

/unitedstates

Source : International Trade Centre