The organic food and beverage market is booming. Consumers increasingly prioritize health, sustainability, and ethical sourcing, driving a surge in demand for organic products. But navigating this dynamic market requires a clear understanding of organic certification standards, food labeling regulations, and the unique needs of organic consumers. This comprehensive guide, brought to you by our leading marketing agency, dives deep into the world of F&B marketing. We’ll explore market analysis, consumer trends, and effective strategies to help your organic food and beverage brand flourish.
Growing concerns over food safety and environmental sustainability have fueled the demand for Organic Foods. So what is Organic Food & Beverage (F&B) Marketing? The positioning of a food or beverage as a ‘minimal human interference’ food system/product, with appropriate certifications, can classify your product as ‘organic’, i.e. from plot to plate. However, the sea of green labels and marketing at a grocery store can be a bit overwhelming, given most things that exist in nature are..well..organic by nature.
But there’s more to it. Beyond being a marketing term, organic farming practices use natural fertilizers and no artificial pesticides & GMOs, reducing human interference and the risk of chemical contamination in food, as well as promoting environmental conservation. In parts of Asia & Australia, organic farming is a discipline, a school of thought, and even a college course at global agricultural institutes.
Market Dynamics Beyond the Organic Label
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The global Organic Foods Market is valued at USD 181.5 Billion in 2022 and is projected to reach a value of USD 446.2 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 11.9% between 2023 and 2030. With consumers becoming more conscious of their health and environmental concerns, the Organic Foods business has grown at an astonishing rate. The Organic Foods market in the US alone had sales of $56.4 billion in 2020, up 12.4% from the year before, according to figures from the Organic Trade Association. A number of important variables explain this rise.
The Organic Foods market is not limited to fruits and vegetables. It also includes other products like organic kombucha, meat, dairy, and grains. Organic livestock farming, for instance, prohibits using growth hormones or antibiotics in animal feed. This ensures that the meat and dairy products produced are free from harmful residues and hormones that could affect human health. Similarly, organic grain farming avoids synthetic fertilizers and chemical pesticides, creating a cleaner and more nutritious product.
In recent years, the Organic Foods market has experienced significant growth. Consumer demand for organic products has skyrocketed, leading to an increase in organic farmers and producers. This has also led to more availability and variety of organic products in grocery stores and farmer’s markets. Many consumers are willing to pay a premium for organic products as they value the health and environmental benefits that come along with them. However, there are also challenges facing the Organic Foods industry. One of the main challenges is the higher cost associated with organic farming. Organic farming practices require more labor and time, increasing production costs. This is often reflected in the price of organic products, which can be considerably higher than conventional counterparts. Additionally, organic farmers face challenges such as climate change, resourcing, and pricey natural pest control.
So, What’s Organic and What Isn’t?
The chatter online on substack, multiple subreddits, and other forums will say that the organic label could be a scam to consumers. This is where product education comes in to help consumers sort through the noise. For example, ‘Organic Seaweed’ vs ‘Seaweed’. There is no difference. Seaweed is grown without human interference in both cases. Some companies may overuse ‘organic’ to garner favor over other competitor products. Therefore, it is imperative for the industry to adopt accurate, ethical labeling standards and for the average consumer to be savvy with organic farming to keep mislabelled products from flying off shelves. Now with the age of social media, social savvy is developing a lot faster than companies (and the USDA) can catch up to. Therefore, it is imperative that your organic F&B company tells a cohesive, true-to-boot story about your products while providing accurate information about sourcing and certification.
Certification Standards; How to Certify Your Product as Organic
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The organic food and beverage market is experiencing unprecedented growth, however, there are certifications and incoming organic fraud prevention regulations to oversee the certification and the sales of products that claim to be organic. Companies should be up-to-date with their governing certification agency. All operators seeking initial organic certification must complete a similar six-step process regardless of which certification agency they partner with. This process ensures that organic operators remain in compliance with organic regulations and helps maintain the ethical integrity of the organic supply chain.
The six steps are:
- Operator adopts organic practices
- Operator applies to certifying agency
- Certifying agency reviews the initial application
- Certifying agency contracts with an inspector to conduct on-site inspection
- Certifying agency reviews inspection report
- Certifying agency issues or denies organic certification
To ensure your products meet organic standards and can be labeled accordingly, consider the following certification bodies for the US & Canada:
United States Department of Agriculture (USDA) – National Organic Program (NOP)
The NOP is a federal regulatory program that develops and enforces consistent national standards for organically produced agricultural products sold in the United States. The NOP accredits third-party organizations to certify that farms and businesses meet the national organic standards. These certifiers and USDA work together to enforce the standards, ensuring a level playing field for producers and protecting consumer confidence in the integrity of the USDA Organic Seal.
To maintain organic certification, your certified organic farm or business will go through an annual review and inspection process. If your operation is not located in the U.S., see the USDA’s International Trade page to learn about your options for organic certification.
Canadian Food Inspection Agency (CFIA)
The Canadian Food Inspection Agency is a regulatory agency dedicated to safeguarding food, plants, and animals in Canada, thus enhancing the health and well-being of Canada’s people, environment, and economy. The agency is responsible to the Minister of Health [16].
Imported or interprovincially traded products making an organic claim must be certified under the Canada Organic Regime. This includes products that are labeled as “organic”, bear the Canada organic logo, or declare “contains x% organic ingredients” [17].
Permitted claims
- Only products with organic content that is greater than or equal to 95% may be labeled or advertised as “organic” or bear the organic logo.
- Multi-ingredient products containing between 95% to 100% organic content may use claims indicating “X% organic ingredients”.
- Multi-ingredient products containing between 70-<95% organic content may use the declaration “contains x% organic ingredients” on the label or in advertising, specifying the percentage of organic ingredients. These products may not use the organic logo or the claim “organic”.
Non-permitted claims
- The “100% organic (product name)” claim is not permitted in Canada. All products with an organic content of 95% or greater are considered organic and may be labeled with the word “organic”.
- The claims “made with organic ingredients” or “made with organic (naming the ingredient)” are not acceptable as it is not clear how much of the product is made with organic ingredients.
QAI (Quality Assurance International)
QAI provides independent, third-party organic certification to products at every stage from farm to fork, adhering to various organic standards, including:
- USDA National Organic Program (NOP)
- Mexico Organics Product Law Standard (LPO)
- Canadian Organic Regime (COR)
- Quebec Organic Reference Standards
- European Union Organic Regulation (EU No 1169/2011)
- NSF/ANSI 305 Organic Personal Care Products
QAI also helps companies that want to export organic products to Japan, Korea, Taiwan, and other international markets.
QAI can certify a wide range of operations, including:
- Crop and livestock producers
- Livestock, dairy, and poultry products
- Processors and manufacturers
- Distributors, traders, and packers
- Facilities, restaurants, and retailers
- Hemp crops and finished products containing hemp-derived CBD
Ecocert
Ecocert, like QAI is an internationally recognized brand known for its high standards and quality guarantees. They certify products according to private or organic standards that are best suited for your markets, whether local or import/export.
Ecocert is a one-stop shop for sustainable certifications, such as fair trade and corporate social responsibility. You can choose from over 30 certifications globally. They act as consultants who can help you get the labels you need.
You Have Your Certification, Now the F&B Marketing
Once your products are certified organic, it’s time to develop a strong marketing strategy based on your story, product, and values:
Focus On A Mission, Harness Storytelling: Authentic storytelling is the cornerstone of brand positioning. Companies like Guayaki and Sprague have successfully showcased their commitment to sustainable practices and social responsibility.
Consider a Spokesperson/Athlete to Represent Your Brand: Partnering with influencers or athletes who align with your brand values can help you reach a wider audience and build credibility.
Develop a Unified Marketing Strategy: Our blended marketing services can help you create a cohesive brand image across all channels, from social media to packaging design.
Design Unique Packaging: Your packaging should not only protect your product but also communicate its value to both the environment and the consumer. Our packaging design services can help you create eye-catching, informative packaging that sets your brand apart.
Building Trust with Transparency: Incorporate features on your website that allow customers to track the source of your products and provide regular updates on your mission and practices. Transparency is key to building long-lasting relationships with your target audience.
Want to Launch Your Own Organic Brand? Get in touch for a free consultation.
