Even with the conflicting evidence, an increasing number of consumers choose organic food, each for their own personal reasons. Flavor, freshness, less pesticide exposure, environmental protection, and the desire to support the small farmer and the farm worker are most often cited as reasons that consumers buy organically produced food. Restaurant & Institution's 1998 report, "A Year to Flavor," lists organic produce as one of the year's biggest trends, stating: "Organic foods will play a burgeoning role in food service." In Food & Wine magazine's 1997 Chef's Survey, administered by Louis Harris & Associates, 76 percent of those chefs surveyed responded "Yes" to the question, "Do you actively seek out organically grown ingredients?" According to the National Restaurant Association, organic items are now offered by about 57 percent of restaurants with per person dinner checks of $25 or more. Renowned chefs who advocate using organic ingredients include: Alice Waters, Nora Pouillon (1997 Chef of the Year), Rick Bayless, Jesse Cool, Stan Frankenthaler, Peter Hoffman, John Ash, and Charlie Trotter. (Restaurant information courtesy of the Organic Trade Association).
Organic products are expanding their retail market share in Michigan, as well as throughout North America, Asia, and Europe. In the US, total expenditures in the organic food sector alone tripled from 1992 through 1997. While still small, at 1 percent of US grocery store sales, the organic food market is growing at an annual rate of 25 percent (Natural Foods Merchandiser, 1998). No sign of a let up is on the horizon.
In Michigan, the largest natural foods retailer is Whole Foods Market, Inc. with 6 stores in southeast Michigan. Also the leading United States natural foods retailer, this company has grown from sales of $90 million in 1991 through 10 stores, to $1.4 billion in 1998 through 87 stores, a remarkable rate of 40 percent per year. Growth of the organic market is not limited to natural food stores. According to a 1995 Food Marketing Institute's "The Food Marketing Industry Speaks:" 42 percent of mainstream stores carry organic produce and 75 percent of senior management believe that organic and natural foods are an upcoming trend. The same study showed that 25 percent of all shoppers buy natural or organic food at least once a week from supermarkets. Michigan's mainstream retail chains such as Kroger, Meijers, and Felpausch now offer an increasing array of organic products including fruits, vegetables, milk, meat, eggs, and soy products.
The sale of organic products direct to the consumer at farm stands and farmers markets additionally represents a substantial segment of the market. Dr. Roberta Cook, an agricultural marketing economist at the University of California, Davis, in a 1994 study noted that 17 percent of all organic produce is sold directly to the consumer. The recent estimate from the Organic Trade Association puts the total organic market between $4 billion and $4.2 billion (Natural Foods Merchandiser, 1998).
Demographic and cultural trends strongly suggest that the desire for organic products, currently shared by approximately 46 percent of Americans, will continue to grow (Hartman and New Hope Research Report on the "Evolving Organic Marketplace 1997"). 80 percent of those polled listed healthfulness as a key criterion in making purchases and 67 percent listed environmental friendliness. Historically, actual demand has never matched the inherent desire for organic products because of limited availability, uninspiring quality, lack of public awareness, and high prices. These barriers have begun to collapse in the past 2-4 years, and as they do, the potential will open for a vast organic market several times larger than the current 1-1.5 percent share (Hartman and New Hope, 1997).
The prospect for rapid growth is strong within the organic industry, but this has created its number one challenge, credibility. As the numbers of products increases so has the consumer confusion surrounding the meaning of the word "organic". 85 percent of those polled nationwide favor labeling standards for organic food (Lake, Sosin, Snell, Perry & Associates, Inc., April 1998). Additionally, issues such as proliferating labeling claims, the refinement of certification standards, the entrance of mainstream producers and marketers, and changing food distribution systems will all challenge this industry and will require alternatives to the current food and fiber production system.