The Business Trends of Organic Food

Major food companies, such as Heinz, are getting on board the organic food movement. I have to admit that I don’t watch a lot of television so you could imagine my surprise when two days ago I was at a friend’s house and as I was watching television I saw a commercial for Heinz “organic” baby food. I’m as cynical as the next guy when it comes to what major food makers put in our food, whether it be adding genetically modified ingredients without telling consumers or revealing what pesticides were used. My point is when a major food company starts to produce and market organic foods on television times are changing. If there wasn’t a market for these types of products, and a significant one at that, there is no way any major company would advertise organic products on national television. With companies in all businesses squeezing margins to extract every cent, there must be considerable demand from consumers. Business is listening.

A major grocery chain who’s headquarters are based in Ontario, Canada, named Loblaws, who is a world leader in private label foods, have made significant investments in their private label organic food division. The line of products is known as PC Organics. Every time I walk down the aisles of one of their many stores I seem to notice more and more organic products on the shelves.

Some statistics that might surprise the average organic consumer and even the average business person is that there are over 30 million hectares of land that are certified to organic standards, and this number is only going to rise. The country with the largest surface area is Australia, Argentina, followed by China.

The trend towards producing certified organic products is only on the rise. As consumers continue to demand to eat food that has not been genetically modified and pesticide free the growth of products made by major food producers will continue to grow. This is good news for the bottom line, for everyone.