Organics sales reach double-digit growth in 2008

May 05,2009
By: Jane Hoback

Nonfood items such as supplements, personal care products, linens and clothing propelled an increase in U.S. sales of organic products in 2008, according to a new survey by the Organic Trade Association.

Sales of organic products, both food and nonfood, totaled $24.6 billion in 2008, a 17.1 percent increase over 2007, according to OTA's 2009 Organic Industry Survey.

The survey, conducted by the Lieberman Research Group, showed that organic food sales grew 15.8 percent to $22.9 billion. Organic food now accounts for 3.5 percent of all food product sales in the U.S., the OTA said. Total U.S. food sales grew 4.9 percent in 2008.

Meanwhile, organic nonfood sales reached nearly $1.65 billion, a whopping 39.4 percent increase over 2007 sales.

"Organic products represent value to consumers, who have shown continued resilience in seeking out these products," said Christine Bushway, OTA's executive director.

In organic nonfood categories:

Supplements sales grew 38 percent to $566 million
Fiber, including linen and clothing, grew 65 percent to $472 million
Personal care products grew 19 percent to $443 million
Pet food grew 48 percent to $76 million
Household products grew 42 percent to $50 million
Flowers grew 54 percent to $42 million

"It is not surprising to see higher rates of growth in the organic nonfoods categories than the organic foods categories, as this sector is less mature than organic foods in general," the OTA said in its executive summary of the report.

Consultant Debbie Swoboda, of Stuart, Fla.-based Debbie Swoboda Marketing Solutions, isn't surprised at the results either. "People are becoming more aware," she said. "And in many cases, prices have come down."

Organic baby clothes, for example, are gaining in popularity, Swoboda said.

In the organic food categories, fruits and vegetables accounted for the lion's share of sales – 37 percent, followed by beverage and dairy, with 14 percent each.

Organic breads and grains and beverages showed the strongest growth. Breads and grains were up 35 percent over 2007. Beverages were up 40 percent.

Swoboda wondered what effects the lingering bad economy will have on organic sales in 2009. "People are concerned. But our industry is still up."

During hard times, dietary supplements pump $60B into national economy

May 28,2009
By: Angela Cortez

Despite the current recession, the dietary supplements industry is growing, creating jobs and pumping $60 billion into the national economy, according to a new study cited by the Natural Products Association.

"If you take a dollar and drop in the pool, you come up with almost three dollars," said the study's author Joan DaVanzo of the health care consulting firm Dobson DaVanzo.

For every dietary supplements dollar spent, the economic contribution is $2.71. The industry also accounts for more than 1 percent of total U.S. health expenditures during the last 10 years, according to the report: The Economic Contribution of the Dietary Supplements in the United States.

The industry contributes about $60 billion to the economy through direct and "ripple effects," DaVanzo said. Directly, it accounted for $22.5 billion in 2006, the latest year statistics were compiled in the study. But DaVanzo said newer statistics indicate continued growth, as dietary supplements sales climbed 5.9 percent to $23.7 billion in 2007.

Because dietary supplements are produced by a large number of manufactures and distributed through a variety of channels, the supply chain involves a number of industries, including retail, agriculture and transport, delivery and warehousing. Those industries stimulate other jobs.

"It starts with suppliers and goes to natural products stores and online venders, so you can see the chain," DaVanzo said. "The net is $22 billion, but once it ripples through where jobs are related … the (dietary supplements) industry touches so many different industries."

Dietary supplements also provide the direct employment of nearly 200,000 people. Under the ripple effect, those jobs expand to more than 400,000 within about 100 different industries.

The study is the first of its kind to measure the economic ripple of the dietary supplements industry, an industry in which 80 percent of Americans buy vitamins and other supplemental health aids. DaVanzo said the growth can be attributed to the fact that as the population ages, people are taking a greater role in seeking out ways to remain healthy.

The industry also pays more than $10 billion in local and federal taxes.

David Seckman, executive director and CEO of Natural Products Association, is using the report in his discussions with state legislators, as well as members of the U.S. Congress, to show that the industry is an economic driver that shouldn't be over-regulated.

"With the health care reform debate going on, this information is critical," he said.

The study was commissioned by the Natural Products Foundation, a nonprofit that supports dietary supplement industry research and education.

Baobab Soap Hits Marketplace

Tropical Wholesfoods has Launched a New Soap for Men.

A very pure, soft and emollient, non fragranced soap - containing the oil of the thousand year old African Baobab Tree. Baobab oil is known for it's anti-wrinkle and skin enhancing properties- it has been used for centuries by women including Cleopatra to keep their skin young and smooth looking. Aloe Vera gel adds to the skin healing and cell repairing and non skin drying actions - good for spots and acne. Excellent for everyone from babies to the elderly especially people with very sensitive skin.
Ingredients:
Coconut (Cocos Nucifera), Baobab Oil (cold pressed), Aloe Vera (inner leaf gel)
Not tested on animals and suitable for vegans.