OTA - Data and Insights

OTA holds in-depth webinar on progress of historic new SOE rule

icardozo — Wed, 10 Jul 2024 17:24:53 +0000

July 10, 2024

The Strengthening Organic Enforcement (SOE) rule, first published in January 2023 and implemented on March 19, 2024, is the single largest update to USDA organic regulations since the creation of the National Organic Program (NOP) and has been a sea change for the organic sector. To keep its members informed on this critical rule, the Organic Trade Association recently held a webinar, NOP Enforcement in the SOE Era: The Power of Data, in which Dr. Jenny Tucker, Deputy Administrator for USDA’s National Organic Program, provided an in-depth overview of how implementation of SOE is progressing.

SOE closes gaps in the current organic regulations and builds consistent certification practices to detect and prevent fraud, improve the transparency and traceability of organic products across the supply chain, and protect organic integrity to support continued growth of the organic market. An SOE summary as well as a wealth of member-exclusive SOE resources are available on OTA’s SOE page.

During the OTA webinar, Dr. Tucker shared key insights into the data now available as a benefit of the SOE requirement that all organic imports be accompanied by electronic NOP import certificates. The data provided by these certificates is already pulling back the curtain on the crops, products, and volumes entering the U.S., highlighting their sources to allow for the transparency and traceability promised by SOE, and pointing to areas along the supply chain where new business types and structures demonstrate the need for an evolving and adaptable certification approach.

Key Update: Effective September 19 it will not be possible to generate NOP import certificates without a USDA certified importer listed in the USDA Organic Integrity Database and customs brokers will not be able to process older paper-based import certificates from outside the Organic Integrity Database.

Viewing of the entire webinar is available for free to OTA members. Individuals or businesses joining OTA can gain access to this and future exclusive regulatory guidance and content. Apply to join OTA today.

Highlights of the data shared by Dr. Tucker, which align with the four primary goals of the SOE rule:

1. Increase the number of certified entities to preexisting gaps in certification. Except for a narrow set of exemptions, SOE requires certification of all entities in the organic supply chain.

1,421 U.S. handling operations have been certified between January 1 and June 15 of this year, a 3x increase from 2023 during this period.
2,709 new handling operations have been certified worldwide since January 1, 2024, many of which are likely exporters that were previously exempt from certification.

2. Require the use of electronic import certificates.

Effective September 19 it will not be possible to generate NOP import certificates without a USDA certified importer listed in the USDA Organic Integrity Database. While most organic imports have been accompanied by import certificates since implementation earlier this year, some imports have been allowed entry in the absence of an import certificate while importers complete the certification process.
49, 712 import certificates have been issued since March 19, giving NOP an unprecedented view of what is entering the United States.
63 percent of import certificates have been issued by USDA accredited certifiers, with the balance issued by EU, Canada, and Japan which shows the value of international equivalency arrangements in upholding organic integrity.
NOP has sent 837 warning letters to uncertified importers since March 19, informing them they are required to be certified. Many are in the process of certification; however, a second round of warning letters are being sent to those still not started on certification.

3. Strengthen recordkeeping and supply chain traceability.

With the requirement for import certificates, NOP can now track import levels of various commodities, take action where it sees violations, and “watch to see where the data tells us to go,” said Tucker.
NOP is hearing from certifiers who, due to the traceability requirements in the rule, are already taking action against operations not able to demonstrate traceability.
NOP is working with trade partners around the globe to conduct yield studies to establish what productive capacity is for a crop in a given region or growing system. This will help identify imports that exceed these reasonable expectations of yields.

4. Strengthen oversight of accredited certifiers.

NOP is seeing the need for evolving certification models, particularly for high-volume, high-throughput operations such as retail distribution systems. “We need to have organic integrity at the speed of business,” stressed Tucker. NOP is collaborating with certifiers who are exploring new ways of meeting client needs while also maintaining organic integrity.
NOP and certifiers are defining, identifying, and implementing risk-based certification approaches. However, in some instances, certifiers are requesting measures be implemented on some small operations that are not reasonable for their level of risk in the supply chain. NOP is working with the community to calibrate implementation and is emphasizing sound and sensible approaches.
OTA has heard from members about reduced service levels and increased turnaround times for new certifications and certificate additions. The trade association will continue conversations with NOP and certifiers to meet the dual goals of robust oversight and timely responsiveness to business needs, as it is imperative that the certification system achieves both outcomes.

How to file a complaint

Concerned about the status or veracity of an organic product in the supply chain? NOP Compliance Officer Tobiah Passett presented an overview of how to file a complaint with the NOP and what happens once the complaint is filed.

Submitting detailed information on the “who, what, where, and how” is key to giving NOP the ability to effectively follow up on the complaint and convert the complaint to an investigation. To know the results of the complaint, complainants must be sure to submit their name and contact details to enable NOP to contact them when the complaint and any investigation is closed.

For more information on the webinar, and for on-demand viewing of it, go here.

By Scott Rice, Senior Director of Regulatory Affairs

From TikTok to Market: How social media trends are driving health and sustainability trends and powering organic

nseifu — Thu, 27 Jun 2024 17:44:48 +0000

June 27, 2024

Social media has consistently promoted organic products, connecting consumers with the benefits of organic living. The impact of social media on all our daily lives is deep, and deepest with younger consumers. These younger consumers are today’s most important organic buyers, and their likes and dislikes are increasingly shaped by social media.

New findings by the Organic Trade Association highlight the pivotal role that younger generations – especially the young adults in the up-and-coming Gen Z group – are having in transforming consumer trends. Their preferences are influencing the market, particularly in organic purchases, and those preferences are frequently sparked by trends that start on social media platforms.

Younger consumers are driving a host of emerging trends in which organic plays a significant role -- the rise of whole food snacks linked to the term ‘Girl dinner’ and ‘household ingredients’, the popularity of cherry juice mocktails for better sleep, and the growing demand for sustainable personal care products. A major catalyst for these trends is the social media platform TikTok. Even though TikTok was launched only in 2016, it’s been lightning-quick at attracting users and currently features among the most popular social media platforms in the world.

Viral marketing and trend creation

TikTok's unique algorithm and user engagement features have made it fertile ground for viral marketing. The platform’s ability to catapult obscure products and ideas into the spotlight almost overnight is unparalleled. Many of the health and wellness trends favored by young consumers have gained traction through viral TikTok videos. Users frequently share tips and hacks that align with their values, such as whole food snacks and cherry juice for better sleep, often leading to sudden spikes in demand.

Whole food snacks and the "Girl dinner" phenomenon

Snacks represent almost 7 percent of all organic product sales, with a penetration rate of nearly 5 percent into the overall snack and candy market, according to OTA’s 2024 Organic Industry Survey.

The rise of whole food snacks is linked to popular social media trends such as "Girl dinner" and the concept of "ingredient households." These trends reflect a movement towards simplicity and health consciousness in eating habits. "Girl dinner" -- creating meals from an array of whole food snacks like fruits, nuts, cheese, crackers, and vegetables -- is a trend that has gained significant traction on platforms like TikTok. This trend is often portrayed as an informal, easy-to-prepare meal option that focuses on balance, nutrition, and convenience. Learn more about the ‘Girl dinner’ trend and explanation.

"Girl dinner" resonates with many because it breaks away from traditional meal structures and embraces the idea of snacking as a legitimate meal format. It emphasizes the joy of eating what one enjoys without the constraints of formal meal planning, highlighting a preference for nutritious and easily accessible food options. This approach aligns with the broader trend of "ingredient households," where consumers stock up on basic, versatile ingredients rather than pre-packaged foods, allowing for more control over their diets and a focus on quality ingredients.

Organic fresh fruits and veggies are a big part of the “Girl dinner,” and in 2023, organic produce sales grew by 2.6 percent to $20.5 billion. Organic produce now accounts for over 15 percent of total U.S. fruit and vegetable sales. The concept of "girl dinner" has further popularized the consumption of healthy snack options like organic nuts, seeds and trail mixes, as it encourages people to curate their plates with diverse and wholesome ingredients.

Cherry juice and the "sleepy time mocktail"

Another noteworthy trend is the increasing popularity of cherry juice, often marketed as a key ingredient in "sleepy time mocktails." These beverages are crafted to promote relaxation and better sleep, capitalizing on the natural sleep-enhancing properties of cherries, which are rich in melatonin. The growing awareness of the importance of sleep for overall health is driving this trend, with consumers seeking natural and enjoyable ways to improve their nighttime routines.

This shift reflects a broader consumer preference for health benefits along with convenience, as seen in the increasing sales of functional beverages. For instance, juice bases like cherry juice have gained popularity not only for their sleep-enhancing properties but also for their post-workout benefits. These trends underscore the broader movement towards beverages that offer specific health benefits, such as anti-inflammatory and adaptogenic effects from ingredients like turmeric and ashwagandha. Again, organic products reflect this shift, with organic beverage sales in 2023 up almost 4 percent to a new record of over $9 billion.

Consumers turned to the latter seeking healthier alternatives to conventional sugar- and artificial flavor-filled drinks. Last year also saw a surge in new organic non-alcoholic beverages and mocktails

Overall, the demand for functional and health-enhancing beverages is reshaping the organic beverages market, highlighting consumer interest in products that support their wellness goals in natural and convenient ways. This trend is exemplified by the viral success of TikTok influencer @Olivianoceda's Cherry and Thyme Ranch Water mocktail, which has garnered over 9.6 million views, 1.2 million likes, and 27.9k shares along with her Midnight Cherry Mix.

Sustainable personal care products

The demand for healthy and sustainable personal care products is also on the rise, reflecting a broader commitment to wellness extending beyond diet. Organic personal care experienced robust growth in 2023 with sales increasing almost 7 percent to $1.3 billion. Trends in this category are largely driven by social media and focus on clean, single or limited-ingredient products.

Consumers are increasingly seeking products that are not only good for their bodies but also environmentally friendly. For instance, the hashtag #cleanbeauty on Instagram or TikTok showcases celebrities like Ashley Tisdale swapping traditional makeup brands for clean and organic options like Ilia makeup.

This shift in consumer choices is driven by a heightened awareness -- largely driven by well-known celebrities on social media -- of the impact of personal care products on health and the environment. Brands are responding by developing products with natural, organic ingredients and sustainable packaging, appealing to consumers' growing preference for eco-conscious and health-conscious choices.

Conclusion

Gen Z's influence is reshaping the consumer landscape, driving trends towards healthier, simpler, and more sustainable choices such as organic, and social media plays a major part in communicating the ‘how to’ ‘why to’. Their preferences are setting new standards for the market. Research shows younger shoppers valuing sustainability and the environment over price, and actively seeking out the USDA Organic seal at the grocery store. These trends continue to gain traction, powered by influential platforms like TikTok. The organic sector is well-positioned and eager to meet the evolving needs of this conscientious generation.

By Naomi Seifu, Social Media and Communications Coordinator

Conscious Consumption: Younger Generations Fueling Growth in the Organic Industry

icardozo — Tue, 18 Jun 2024 16:58:16 +0000

June 18, 2024

In recent years, the beginnings of a seismic shift have been observed in consumer behavior, primarily driven by the younger generations. Millennials and Gen Z are not just interested in what they eat; they are deeply invested in the values that their food represents. This trend towards value-based eating has the potential to transform the food industry, with organic food at the forefront of this revolution.

The Organic Trade Association (OTA)’s 2024 Organic Industry Survey shows a consistent and growing interest in organic from Millennials and Gen Z. The latter generation grew up with organic and sustainability, and the health of people and planet, are all top-of-mind for these younger generations. Industry experts see this as an opportunity for increasing organic demand, with the industry well-positioned to meet the product attributes and values sought by consumers today and for future generations. OTA’s Consumer Perception of USDA Organic and Competing Label Claims Report reports that on average, organic, regenerative, vegan and allergen-free claims are 36% more important to Millennials and Gen Z than Gen X and Baby Boomer consumers.

Sustainability: A Core Concern

For younger consumers, sustainability is not a buzzword; it's an ethical choice inherent to how they see their ability to create change in the world. They are acutely aware of the environmental impact of their food choices and are actively seeking products that minimize harm to the planet. Organic farming practices, which typically avoid synthetic pesticides and fertilizers, are seen as a sustainable alternative. These practices promote soil health, reduce pollution, conserve water, and lower risk of pesticide exposure for the people who grow our food. By choosing organic, young consumers are casting their vote for a food system that prioritizes the long-term health of the planet and people.

Animal Welfare: An Ethical Imperative

Animal welfare is another crucial factor driving the demand for organic products. OTA’s Consumer Perception of USDA Organic and Competing Label Claims Report shows that 50% of consumers agree with organic marketing claims indicating that organic products protect animal health and welfare. The younger generations are increasingly concerned about the ethical treatment of animals. Organic livestock farming, governed by stringent regulations, ensures animals are raised in conditions allowing them to express natural behaviors, are fed organic feed, and are not subjected to unnecessary antibiotics or hormones. Updates to the organic standards that strengthen animal welfare requirements such as the Organic Livestock and Poultry Standards (OLPS) provide assurance to these consumers that their food choices align with their ethical values.

Transparency: A Demand for Honesty

Transparency in food production processes has become a significant concern for young consumers. They want to know where their food comes from, how it is produced, and what it contains. The conventional food industry’s opacity is losing ground to the organic sector’s commitment to transparency.

The U.S. Department of Agriculture (USDA)’s National Organic Program (NOP) has developed an Organic Consumer Outreach Toolkit to promote transparency through the Four Pillars of USDA Organic:

Protected by Law: The USDA organic label is the sole government-backed marketing claim for organic food sold in the United States. Only products that meet USDA organic standards can bear the organic seal.
Inspected by Experts: Trained organic inspectors conduct annual visits to each organic farm and business to ensure compliance with organic standards. Surprise inspections and testing are also conducted regularly.
Traced from Farm to Store: The Strengthening Organic Enforcement (SOE) rule enhances the USDA's ability to oversee and enforce organic standards, ensuring traceability of organic products from farm to store.
Shaped by Public Input: Stakeholders and the public have the opportunity to provide feedback through public comments on proposed regulations, influencing final policy decisions.

Organic certification requires rigorous adherence to standards that are clearly communicated to consumers. This openness builds trust and allows consumers to make informed choices about the food they consume.

Health Consciousness: A Key Driver

Health is an overarching concern tying s together the values of sustainability, animal welfare, and transparency. Young consumers are increasingly aware of the health implications of their dietary choices. Organic foods, which are free from synthetic additives, preservatives, and genetically modified organisms (GMOs), are perceived as healthier alternatives. This perception is backed by studies suggesting that organic produce may contain higher levels of certain nutrients and lower levels of pesticide residues.

“There is a growing awareness among consumers about the potential health benefits associated with organic foods. Consumers desire cleaner, more nutritious food options. Many consumers, especially Gen Z, are more conscious of the ethical implications of their food choices and are looking for products that align with their values, such as animal welfare, fair trade, and support for organic farmers,” says Paul Schiefer, president of Amy’s Kitchen.

The Market Response

The market is responding to this shift with a proliferation of organic products. Supermarkets are expanding their organic sections, farmers' markets are more popular than ever, and new brands are emerging to meet the demand. The organic food market, once a niche segment, has grown at unprecedented rates, reflecting the priorities of younger consumers.

OTA’s 2024 Organic Industry Survey states that in 2023, the overall organic marketplace hit record dollar sales of $69.7 billion on 3.4% growth. Key trends helping to elevate organic growth include a growing consumer focus on personal and family health, sustainability, and a desire for clean products—those free from antibiotics, hormones, preservatives, dyes, allergens, and other artificial ingredients. These are pinnacles of Millennial and Gen Z buying trends.

New research completed by the Organic Trade Association in partnership with Euromonitor International shows that Gen Z, the age group that was born between 1997–2012 (ages 12 to 27), is playing a major role in the current demographic shift that is ushering in new consumer wants and needs and helping to drive some of these trends. This generation grew up with organic and its halo of being healthier for people and planet. By 2030, the U.S. population will consist of a majority driven by Millennials, Gen Z, and younger generations.

Challenges and the Path Forward

However, the organic movement is not without its challenges. Higher costs of organic production often translate to higher prices, which can be a barrier for some consumers. Additionally, there is the challenge of ensuring the integrity of organic labels amidst rising demand. As the market grows, so does the need for stringent oversight and consumer education to maintain trust in organic certification. Still, OTA’s Organic Industry Survey illustrates that in 2023, the core organic consumers showed they valued organic and were willing to accept price increases and keep buying organic.

Trust in the USDA organic certification will continue to play a role in the marketplace’s growth. In 2023, the Strengthening Organic Enforcement (SOE) rule went into effect. This initiative is widely supported by the industry and will provide much-needed transparency across the USDA certified organic supply chain along with actionable ramifications to mitigate the potential for fraud in the organic marketplace. No other eco-certification is government regulated and so, no other certification has consequences, such as civil fines and jail time, when bad actors try to exploit the system.

Moving forward, the food industry must continue to innovate and adapt to meet the evolving values of younger consumers. This means not only expanding organic options but also making them accessible and affordable. It also involves fostering greater transparency and continuing to prioritize sustainability and animal welfare.

Continuing to meet the needs of these younger, up-and-coming generations will be critical to continuing to elevate organic in the marketplace, says Matthew Dillon, co-CEO at the Organic Trade Association. “We need to continue to delight and attract new customers. In order to do that, we have to realize the consumer is always evolving in their interests. Yesterday the focus was what was good for their kids, tomorrow it’s what’s good for the planet, and a week from now it will be what’s good for farmers. Interests and values are always evolving and in organic, we have to be able to capture these evolving interests.”

Conclusion

Younger generations are driving a transformation in the food industry, guided by a holistic set of values encompassing sustainability, animal welfare, transparency, and health. The rise of organic food is a testament to their influence. As they continue to advocate for a food system that aligns with their values, the industry must rise to the challenge, ensuring that the principles of value-based eating are upheld and advanced. This shift is not just a trend; it is the future of food.

References:

By Irene Cardozo, Brand Marketing Manager

Gen Z driving value-based purchasing and continuous improvement in organic

nseifu — Tue, 11 Jun 2024 18:06:51 +0000

June 11, 2024

USDA organic has an expanding fanbase in Gen Z. The Consumer Perception of USDA Organic Report released earlier this year from the Organic Trade Association, revealed that young people are driving the growth of organic as they prioritize value-based eating. 77% of Millennial and Gen Z survey respondents described organic claims as at least somewhat important to them, jumping from only 55% of Gen X and Baby Boomer consumers.

The Consumer Perception Report, available to purchase or free with OTA membership, contains over 40 pages of insight to help your company understand the organic consumer and market opportunity.

While USDA organic food sales have grown consistently since the seal was created in 2002, the organic non-food sector remains poised for growth but is hindered by regulatory uncertainty. Consumers are seeking sustainable purchasing options in several categories with underdeveloped organic regulations including personal care, supplements, pet food, and seafood. The 2024 Organic Industry Survey showed organic personal care and supplements sales have both roughly doubled in the last 9 years – demand is strong. However, lack of regulation around what it means to manufacture these products discourages companies from investing in organic product lines.

Meanwhile, in other categories, lack of regulation has stifled organic growth. Organic pet food sales shrunk by 7% in 2023, despite consumer interest in planet-friendly options. Without fully developed organic pet food standards, it is difficult for companies to distinguish themselves from their “natural” competitors. OTA recently submitted comments on the proposed organic pet food standards and applauds USDA for advancing rulemaking for the sector. Consumers are also concerned about seafood sustainability; prioritizing traceability and responsible harvesting in their purchasing. As the demand is pushing suppliers and food service operations to source sustainable seafood, USDA has been slow to advance rulemaking on establishing criteria for certifying seafood as organic in the U.S. The EU and South America have established organic standards for aquaculture operations, and those imported products are being sold as organic in the U.S.

The 2024 Organic Industry Survey, free with OTA membership and available to purchase, will empower your company to better navigate the organic marketplace.

USDA organic regulation is intended to evolve over time to incorporate new and emerging science, industry practices and consumer expectations. Unfortunately, the federal regulatory apparatus has slowed innovation and continuous improvement within the industry. One recent update to the organic rules was the Organic Livestock and Poultry Standards rule, which better aligned the standards with consumer expectations for animal welfare under the USDA organic label. It took over fifteen years of advocacy to get this rule complete, and in that time many organic producers underwent dual certifications to deliver on consumer expectation. Unfortunately, the OLPS process was not unique. In the last 20 years, the National Organic Standards Board (NOSB) has advanced 19 consensus recommendations for additional organic standards, but the National Organic Program at USDA has only completed rulemaking on 5 of them.

USDA organic regulations must keep pace with consumer expectations for the organic seal to maintain integrity and relevance and maximize on the value-based purchasing driven by younger generations. The Continuous Improvement and Accountability in Organic Standards (CIAO) Act (H.R.5973) is the solution to clear the regulatory backlog. CIAO is a bipartisan bill that adds transparency and accountability to the federal regulatory process for organic. CIAO creates a regulatory process for the National Organic Program to make revisions across 5-year cycles based on public input, tangible evidence and science, and recommendations from the National Organic Standards Board. The legislation has garnered a diverse coalition of supporters across the entire organic industry. OTA is advocating for the inclusion of CIAO in the Farm Bill so that timely and transparent organic rulemaking can finally open the door for organic innovation and ensure that all generations have confidence in the USDA Organic seal in their search for transparent and sustainable products.

By Laura Holm, Legislative and Farm Policy Associate

Specialty crop grants awarded to 18 projects featuring organic

vbatcha — Tue, 12 Sep 2023 23:12:09 +0000

September 12, 2023

The Specialty Crop Block Grant Program (SCBGP) was first incorporated in the Farm Bill in 2008 to support specialty crop producers and consumers. Since then, SCBGP has been an important program for organic specialty crop producers, who have faced increasing market demand for decades. The 2018 Farm Bill reauthorized SCBGP at historic levels, with a mandatory $85 million available per year.

Last month, the U.S. Department of Agriculture’s (USDA) Agricultural Marketing Service (AMS) announced $72.9 million awarded to 55 states and territories through SCBGP. 18 of the awards that went to 15 state departments of agriculture include organic practices in their projects. The projects represent nearly $2 million in funding for specialty crop marketing, education, and research benefiting organic.

Arizona, Florida and Hawaii will all study organic-friendly methods for pest management in lettuce, celery and parsley, and brassica crops respectively. Angelic Organics Learning Center will increase access to specialty crops among underserved communities in Illinois. The Maine Organic Farmers and Gardeners Association will continue to host educational opportunities for specialty crop farmers. You can find the project titles for each program featuring organic below, and click here and search “organic” to browse the description of each award.

Organization	Project Title
Arizona Department of Agriculture	Mobile Trap Crops for Organic Vegetable IPM
California Department of Food and Agriculture	Sharing Nutritional Benefits of California Prune and Plum Juices to Build Sales Among United States Families
Florida Department of Agriculture and Consumer Services	Management of a New Weevil Pest of Celery and Related Apiaceous Crops
Georgia Department of Agriculture	Chemical Constituents of Pine Bark for Nematode Control
Hawaii Department of Agriculture	Hawaii Integrated Pest Management Program for Diamondback Moth to Increase the Sustainability of Crucifer Crops
Illinois Department of Agriculture	Increasing Access to Specialty Crops Among Underserved Communities Through Culturally Appropriate Market and Educational Opportunities in Rockford
Louisiana Department of Agriculture and Forestry	Examine the Application of Organic Friendly Antimicrobial Agents Such as Propionic and Lactic Acid Against Microbial Risks on Specialty Crops
Maine Department of Agriculture, Conservation, and Forestry	MOFGA’s Maine Produce Safety Improvement and FSMA PSR Certification Project
Maine Department of Agriculture, Conservation, and Forestry	Meeting House Herb Farm Increasing Sustainability of Maine Farms with Herbs
Maryland Department of Agriculture	Educate Maryland Farmers How to Grow for Local Schools
Mississippi Department of Agriculture and Commerce	Evaluation of Sweet Potato Practices on Nutritional Quality During Long-Term Storage
Mississippi Department of Agriculture and Commerce	Containerized Organic Production of Turmeric in Mississippi
Montana Department of Agriculture	Control of Soilborne Disease Using Beneficial Bacteria for Organic Pea Growers
Montana Department of Agriculture	Exploring Intercropping and Essential Oils to Control Fusarium Root Rot of Pea
Pennsylvania Department of Agriculture	Weed Management Strategies for Organic High-Density Apple Orchards
Tennessee Department of Agriculture	Pick TN Conference Attendee Scholarships, AV Costs and Speakers
Texas Department of Agriculture	Boosting Organic Leafy Green Production Using Summer-Adapted Cover Crops in Texas
Vermont Agency of Agriculture	The Changing Landscape of Allium Pest Management on Vermont Diversified Vegetable Farms

By Laura Holm, Legislative and Farm Policy Associate

Consumer behaviors influencing organic consumption: insights into Gen Z

nseifu — Tue, 12 Sep 2023 20:00:50 +0000

September 12, 2023

A recent survey completed by Ketchum, a global communication consultancy group, has provided insight into the food and purchase behaviors of the newest generation of household purchasers, Generation Z. Gen Z, or individuals born between 1997 and 2012, are increasingly influencing the food market through independent purchases and by informing household food purchases. 68% of Gen Z report that they cook differently than their parents, with 53% trying new cuisines and 55% reporting they prepare a meal using only snacks. This generation has grown up in an “always on” culture with 24/7 access to the internet and social media via smartphones and other wearable technologies. This access has significantly impacted their means of interaction and, according to the survey, 70% of them cite social media influencers as the way they get information about food content.

Gen Z, like their Millennial predecessor generation, is acutely aware of financial pressures and the need to address global threats such as climate change, social equality, and geopolitical conflicts. These influences have molded them to be highly aware of societal issues and environmental concerns; the Ketchum report found that 76% of Gen Z say that sustainability is important for food purchases, 51% of them care about the environment and climate change issues, and 72% think the food system is broken. This acute awareness of global issues has had a profound impact on this group and 63% of them cite that they feel too much pressure to “change the world” with their behaviors.

What can the organic industry take away from this insight into Gen Z?

One of the most cited challenges reported by companies marketing to organic consumers is that it can be difficult to educate about what the USDA organic label means since it represents a comprehensive standard addressing a wide range of issues ranging from pesticide- and GMO-free, animal welfare standards, ingredient limitations in processed goods, and agricultural concepts addressing carbon sequestration, soil biodiversity and microbial activity, cover cropping, and more. In short, the USDA organic label isn’t always the simplest label to communicate to consumers. So, what does this mean in relation to Gen Z? As we learned from Ketchum’s survey, Gen Z is acutely aware of the challenges that society is facing today with climate change and environmental issues; so much so that they are reporting high levels of anxiety about their behaviors needing to change the world. As informed and environmentally conscious consumers, they likely already know the reasons why organic food is needed. What organic companies may want to spend their time reinforcing to Gen Z is how simply choosing organic can be an easy way to help change the world; thereby relieving them of some of the anxiety about the fate of the world resting solely on their generation. To put it simply, organic products offer an accessible contribution to efforts to save the world.

While Gen Z may be painfully aware of the challenges for society and the environment and their need to personally address these issues, the survey also found that their actual eating habits differ significantly from what they say versus what they purchase and consume. The survey showed that 76% of Gen Z used sustainability as an “important factor in making a food purchase,” however, only 16% said that they looked for sustainably sourced ingredients when they make food purchases. More drastically, with respect to animal welfare, 72% say they look at animal welfare when choosing foods, but only 5% reported that animal welfare informs their eating habits. What conclusions might we draw from these large discrepancies? A 2023 survey completed by Deloitte states that Gen Z, along with millennials, were greatly impacted by financial pressures stemming from the pandemic, encountering rapid inflation challenges, and significant increases to the overall cost of living. Additionally in relation to sustainability, Gen Z reported in the Deloitte survey that while they know the importance of sustainability and minimizing their impact on the environment, they “think it will become harder or impossible to pay more for sustainable products if their economic situation remains the same.”

While these surveys provide us some mixed messages about how to appeal to Gen Z, the overall good news for the organic industry is that Gen Z is hyper-aware of the importance of choosing sustainable products and making a difference through their food and goods purchases. The more challenging takeaway from these surveys is addressing the chasm between expressed values (sustainability, social and animal welfare, climate change) and their actual purchasing and eating behaviors. A consistent finding in both surveys is how anxious and stressed Gen Z is on all topics ranging from finances, food, environment, and social media. Given this anxiety, one potential strategy for producers of organic products is to emphasize how the simple act of choosing organic is good for the planet, people, and economy. A simple message to minimize the foreboding feeling that it is their generation’s job to solve the world’s problems. Organic products, and the systems and companies that produce them, have the capacity to change the world. Gen Z, we got you. Go ahead and check this one off your to-do list!

By Joelle Mosso, Sr. Director of Regulatory and Technical Affairs

References:

https://www.prnewswire.com/news-releases/gen-zs-relationship-with-food-i...

https://www.pewresearch.org/short-reads/2019/01/17/where-millennials-end...

https://www2.deloitte.com/ua/en/pages/about-deloitte/press-releases/delo...

Study: U.S. Organic Has Work to do Abroad on Trust

stephanie@llmpubs.com — Fri, 09 Sep 2022 17:23:34 +0000

September 9, 2022

As part of Organic Trade Association’s partnership with Edelman to study organic trust among consumers in the United States, Edelman used its global reach to survey trust among consumers in five key export markets for U.S. organic producers: France, Germany, Japan, the United Arab Emirates, and the United Kingdom. The findings from this Organic Trust Barometer are critical in maximizing existing lucrative trade opportunities for U.S. brands, and will provide important background as we pursue updated equivalence arrangements with important trading partners. Particularly, these findings will inform the trade association’s ongoing consumer promotion efforts in these foreign markets, enabling our messaging to better resonate with consumers.

For U.S. exporters marketing products overseas, these findings provide equally valuable insights into consumer understanding of organic in these foreign markets, especially in comparison to their locally regulated organic products. It should not come as a surprise that consumers in all markets (with the exception of the U.A.E) have a higher degree of trust in their domestic organic seal; however, trust in the USDA seal was also fairly strong in these international markets.

Noticeably, trust in the USDA organic program was lower in France, Germany, and Japan throughout the survey responses. Certainly, there is cultural precedent for these results. While trust in local food systems tends to be higher than in imported products in many countries, the EU maintains a particularly strong preference for local production, now emphasized in the Farm to Fork Strategy and Organic Action Plan. Additionally, strong negative perceptions among EU consumers surrounding U.S. conventional agriculture and factory farming have spilled into perceptions of U.S. organic goods as well. Moving forward, U.S. organic products will do well to position themselves as the safest and most highly regulated food system in the United States.

For Japanese consumers, when asked about whether information on organic standards was accessible and easy to understand, the responses were surprisingly low relative to all other foreign countries surveyed. Organic Trade Association has sought to fill this gap through working with a Japanese PR agency over the last couple of years. In partnership with this firm, OTA has sponsored retail promotions of U.S. organic products in local retail outlets of various sizes, as well as ongoing social media promotions of U.S organic items. Visit OTA’s Japanese language Instagram page to check out the results: https://www.instagram.com/organictradejapan.

There is work to do for the USDA organic label to be consumers’ preference overseas, however there is an opportunity for industry to establish a go-to source for information. These strategic implications will inform the ongoing efforts of the trade association to promote USDA-certified organic products overseas, and continue to strengthen the image of USDA-certified organic products abroad.

Alexis Carey is OTA’s outgoing Associate Director of International Trade. Read more about her on page 28 of the digital magazine.

This article was originally published in the Fall 2022 Organic Report, you can view the full magazine here.

Organic Market Basket: A Closer Look at Pricing Pressures

stephanie@llmpubs.com — Fri, 09 Sep 2022 15:20:10 +0000

September 9, 2022

Pricing Pressures

Consumer prices are on the rise. According to the U.S. Bureau of Labor Statistics’ Consumer Price Index, food prices are up just over 10 percent from a year ago. Organic foods are no exception; only three out of 20 items in the Organic Market Basket did not see a price increase this period. Ongoing supply chain shortages (labor, ingredients, and transportation) have conspired to push prices higher. Organic prices, while slower to rise initially, are not exempt from these pressures. Here are a few observations by major category.

Produce

Organic produce managed to gain dollars, but unit volume was down overall, an unusual development in the category. In the case of bananas, increased prices are a good thing, as produce industry leaders have long held that organic banana prices were unsustainable—far below what growers need to sustain their businesses. Apple prices were also significantly higher, but this is largely a seasonal phenomenon, as domestic supplies dwindled leading into the summer months.

Refrigerated

While demand for dairy products revived during the pandemic, U.S. organic producers face unique difficulties, including high costs for feed and other inputs. Milk, butter, and eggs all lost dollars and volume, though organic yogurt continued to ascend. Organic orange juice is also a bright spot in the refrigerated case—as families return to a beloved staple of the breakfast table after years of sugar-shunning juices of all kinds.

Grocery

Center store is the section of most concern as we dip into an economic downturn. We know from years of studying the organic industry—both on the market side and through consumer research—that the further removed a product is from the field, the less likely shoppers are to prioritize purchasing organic. Most shoppers do not know that organic standards reach beyond the field and into the manufacturing facility, keeping artificial colors, flavors, and preservatives (as well as those from GMO ingredients) out of processed foods.

When we educate our shoppers about the full spectrum of organic benefits—not just the growing practices, but post-harvest, including processing requirements—we create a layer of economic insulation for organic processed foods, making them more resilient to price sensitivities.

Frozen

All three items tracked in the Basket saw dollar and unit volume decreases. Two of three items took price. Those working in the cold chain have struggled to overcome myriad challenges, including capacity, transportation, and labor constraints. Overall, though, the freezer set has seen a resurgence over the past few years. Frozen organic foods are seen as innovative, convenient, and cost-efficient. The upshot is: despite losses for the period, these organic categories are still trending above their pre-pandemic levels.

Angela Jagiello is the Director of Education & Insights for Organic Trade Association.

This article was originally published in the Fall 2022 Organic Report, you can view the full magazine here.

Regulatory Round-up, April 2022

Anonymous — Tue, 05 Apr 2022 21:28:10 +0000

April 5, 2022

Over the last week, a flurry of regulatory activity has taken place across organic agriculture. In addition to the formal publication of the Origin of Livestock Final Rule in the federal register, which was previously announced during Organic Week by USDA Under Secretary of Agriculture for Marketing and Regulatory Programs Jenny Lester Moffitt, the Organic Trade Association (OTA) has submitted 63 pages of recommendations across four unique comment opportunities in the past week. These regulatory comments represent over a decade of work by OTA to safeguard organic and firmly entrench it as the gold standard for agricultural products. This work reflects OTA and the organic industry's commitment to continuous improvement, modernization, and climate-smart agriculture.

Prioritizing NOP Rulemaking on Organic Standards

The National Organic Program (NOP) recently opened a comment period to gather feedback on how to prioritize the backlog of National Organic Standards Board (NOSB) recommendations for organic practice standards (e.g., greenhouse/container production, mushroom production, strengthening organic seed usage). OTA’s comments urged NOP to prioritize capacity-building for ongoing development and implementation of standards, and to devote additional resources and staffing exclusively to standards writing and development. OTA also presented NOP with a multi-stage action plan (developed by OTA’s Continuous Improvement and Accountability in Organic Standards Task Force) to advance all outstanding recommendations over a reasonable timeframe. The Association's action plan streamlines the workload by grouping multiple NOSB recommendations together into a single action, which will help to ensure efficient and resourceful rulemaking.

Upcoming Issues for Spring 2022 NOSB Meeting

OTA has submitted comments on multiple topics to help inform the Spring 2022 NOSB Meeting. The Association's comments address a variety of issues, including: restricting the use of highly soluble nitrogen fertilizers in crop production, clarifying the use of cell and protoplast fusion in seeds used in organic agriculture, and strengthening NOP risk mitigation when accrediting certifiers. OTA will also provide oral comments next week. The public NOSB Meeting will take place on April 28-30 via online webinar.

Allowing Paper-based Planting Aids (Paper Pots and Tapes)

NOP recently proposed an amendment to their regulations that would formalize and clarify the allowance of paper-based crop planting aids (including paper pots, seed tape, and collars) under a new definition that sets minimum composition requirements for biobased and cellulose content. OTA’s comments supported the NOP proposal and NOSB and NOP conclusions that the use of these materials are consistent with organic farming principles and necessary for use on organic operations. Allowance of paper pots and tapes is critical to the success of organic operations at all scales due to the absence of natural alternative products and management practices that would achieve the equivalent level of efficiency, crop quality, and waste reduction.

Ensuring Food Safety, Requirements for Agricultural Water on Produce

In response to the Food and Drug Administration's (FDA) proposed amendment to the Produce Safety Rule under Food Safety Modernization Act concerning requirements for pre-harvest agricultural water for produce (other than sprouts), OTA submitted comments verifying that the amendment did not conflict or duplicate the requirements of USDA organic certification. The trade association raised concern in its comments, however, that the rule’s ambiguity may present challenges to producers. OTA called for FDA to dedicate resources, tools, and technical assistance to help organic operations understand and comply with this final rule.

Origin of Livestock Webinar Announced, April 20

On Wednesday, April 20, 2022, from 1:00pm-1:30pm Eastern, NOP will hold an informational webinar to provide an overview of the changes this rule makes to the USDA organic regulations and how they may impact organic farms and businesses. USDA has also released this helpful infographic to explain how the new rule works.

Webinar details:

Wednesday, April 20, 2022 1:00pm, Eastern Time
Click this Zoom link to join: https://www.zoomgov.com/s/1601769899
Join by phone: US: +1 669 254 5252 or +1 646 828 7666
Webinar ID: 160 176 9899
International numbers available: https://www.zoomgov.com/u/ac4jNxLv1K

Shoppers Value Organic Attributes, Lack Familiarity with the Label

admin — Mon, 28 Feb 2022 22:01:59 +0000

February 28, 2022

From supply chain failures during the global pandemic to the UN Food Systems Summit, food systems have been in the spotlight for the past two years. While this focus on food systems is welcome, current events also demonstrate how critical it is that institutions work together to ensure that our food systems are working for all people, for animals, and for the planet. Unfortunately, public confidence in these institutions is shaky and degrading.

This decline in institutional trust is clearly seen in the 2021 Edelman Trust Barometer that illustrates low levels of trust in all institutions. However, the current report highlights the emergence of business as not only the most trusted institution, but also the only institution that is seen as both competent and ethical. This represents both a real opportunity for business and brands to lead and connect with their consumers, and a huge responsibility for business to reflect consumers’ values and to be a source of credible, useful information.

Although consumers trust business more than other institutions, their expectations of business are also growing. Increasingly, consumers demand that businesses and brands reflect their values: 86% of those surveyed expected brands to take action on issues beyond their core business.

Consumers know that companies make hundreds of important decisions about how natural resources are used, how people and animals are treated, and much waste is generated before a product reaches the consumer. They want to know that brands have carefully considered each of those decisions and made choices that reflect their values. For a process-based standard like organic certification, this consumer desire for businesses to integrate purpose and societal impact into their processes and culture is particularly interesting.

It is in this context that the Organic Trade Association commissioned a study from Edelman Data and Intelligence (DxI) to understand how the broader Trust Barometer findings apply to Organic and specifically examine consumer trust and understanding of the National Organic Program (NOP). We surveyed 7,500 individuals from six markets (U.S., UAE, Japan, Germany, France and UK) to identify how individuals perceive and relate to organic, their expectations of the organic industry, and potential threats and opportunities to build consumer trust.

Findings show that while there is general alignment between consumers’ priorities and their impressions of organic products, many consumers are not familiar with the specific requirements behind the USDA Organic seal, and may not understand the certification and inspection process that underpins the organic label.

Organic Trust Barometer

The things people say they care about coincide with many of the elements of the organic standards.

When participants are asked about their key concerns in the food and beverage industry, many of their top concerns are aligned with the requirements of NOP. For example, more than 70% of respondents were at least somewhat concerned about the use of chemicals and GMOs in farming. They also expressed significant concerns about the treatment of agricultural labor and animal welfare.

More than 60% of those surveyed believe organic agriculture addresses many of these concerns, with majorities indicating that they believe organic products are healthier, have fewer pesticides and fewer GMOs than conventional products. They also believe organic products support small farms and are better for animal welfare.

There is widespread confusion about what it means to be organic.

However, people are not very familiar with organic agriculture or NOP. Only one in four Americans (25%) say they are very familiar with NOP, and most are not sure what is and is not part of the NOP standards. For example, 42% of Americans do not know NOP requires crops to be grown with organic seed (and 16% do not think it is part of the standard at all).

Consumers are using labels to make purchases—even when they are not verified in any way.

The lack of understanding of NOP is allowing opportunities for other labels to become prominent, even if those labels lack clear definitions or verification. When we asked consumers about labels that may compete with the USDA Organic seal, and how likely those labels were to influence purchasing decisions, labels like “all natural” were very influential, as were “raised without antibiotics,” “hormone-free,” and non-GMO.

Trust in Organic is being held back by a lack of familiarity.

These results suggest that while organic is generally seen as positive, that positive feeling is not backed by real familiarity of what organic stands for and why consumers should trust the organic label. When asked whether they trusted the organic seal, more than a quarter of U.S. respondents (28%) were neutral about the seal, and another 5% answered they did not know.

However, we did find a particular group of people who have a high degree of trust in organic. Roughly one in four individuals surveyed (28%) love food, share knowledge about food with others, and are more likely to take concrete actions when they learn information about a food or beverage brand. We call this group the “Food Forwards.” Food Forwards are important not only because they are interested in food themselves, but because they influence others. They report that family and friends seek their advice on food, they share food information on social media and other channels, and they are more likely to support or boycott companies—and encourage others to do the same—based on what they learn about specific brands.

Food Forwards were also twice as likely as the general population to be familiar with organic agriculture, and 79% of Food Forwards said they trusted organic, with 48% of them tending to buy organic products, significantly more than the general population.

The Food Forwards show us that those who know organic, like organic and trust organic. They also suggest that there is an opportunity to move those who are in the neutral or don’t know categories toward trust by demonstrating the value of the Organic seal.

The key question, of course, is how to best connect with and create trust among the neutral or uninformed. Our survey showed that only a quarter of Americans believe there is enough clear, accessible information about organic, and when asked about the best source of that information, respondents did not identify a dominant source that consumers rely on as authoritative about organic. In fact, 24% said their most prevalent source of information was friends or family, and only 11% said they relied on government sources for information on organic.

While this may make it harder to target communications, it also indicates that there are opportunities to explore new avenues for connecting with and educating consumers about organic, including engaging new voices—like the Food Forwards who are eager to share their knowledge—and using a variety of channels, from earned to social media, to spread the word about the value of the Organic seal. Members of the organic community throughout the value chain, from farmers to retailers, have opportunities to examine their relationships and engage more broadly with their stakeholders to deepen stakeholders’ understanding of the fundamentals of organic and build trust.

While expanded outreach on organic is important, it is also important not to lose sight of the content and the relevance of the message. As previously stated, consumer expectations continue to evolve and grow, particularly as they relate to industry’s impact on the environment, workers, and animal welfare. Our survey showed that consumers expect organic standards to evolve along with their expectations, and that the changes in those standards should reflect the latest science.

As consumers learn more about the plight of workers and animals in our supply chains, organic standards, and commitments to protect both workers and animals will need to evolve with the times. And no industry will be immune from measuring and reporting their impact on climate change. Many organic practices are already responsive to these issues, but there is an expectation that organic standards will evolve to include more specific metrics in these areas. An additional challenge for the industry will be communicating not only that individual operations are held accountable on climate, labor, and animal welfare, but how those individual commitments ladder up into larger, overall contributions of the organic industry.

The next 18–24 months could be particularly dynamic for food and agriculture. As we learn to manage COVID and develop our “new normal,” consumer purchasing patterns may shift yet again. Concurrently, the food and agriculture policy landscape is also changing rapidly. The Infrastructure and Build Back Better Bills could provide significant new resources for sustainable agricultural practices, and the next Farm Bill process has already begun. New financial regulations and reporting guidelines on ESG (Environment, Social and Governance) goals will require companies to demonstrate the value and effectiveness of the commitments they have made on environmental and labor. Each of these initiatives provide opportunities for the organic industry to demonstrate how organic can help achieve both personal and policy priorities. Based on the results of our survey, there are also significant opportunities to tell that story to new audiences, and in new ways.

Ambassador Darci Vetter is the former Chief Agricultural Negotiator at the U.S. Trade Representative (USTR) and Deputy Under Secretary at the U.S. Department of Agriculture (USDA). She is now Senior Advisor, Agriculture, Food and Trade at Edelman Global Advisory.

This article was originally published in the Spring 2022 Organic Report, you can view the full magazine here.