Sales of organic foods, touted for their health benefits, are growing rapidly. Yet at the same time fast food sales, portrayed as a key contributor to the obesity epidemic, are also on the rise. While the regular food sector is showing a 2 to 3% growth annually, organic food is jumping ahead with a 17 to 20% growth rate.
A recent study by The Hartman Group found that, “Compared to the general population, two ethnic and racial groups are somewhat more likely to purchase organics: African Americans and Hispanic Americans. Hispanic Americans and African Americans are much more likely than Caucasians to be Core organic consumers.” The difference in studies shows that organic food is also spreading to a wider consumer base.
In 2006, organic food sales totaled nearly $17 billion, up 22% from the last year. Price-wise, organic foods traditionally high price tag has been declining as the food becomes mainstream. As an investment, the organic share of the market was up to 3% to $17 billion compared to the 2.5% in the prior year.
Ironically, amid the fascination with health, fast food sales are also growing. While organic food is being marketed as a healthy alternative, Americans are still reaching for super-sized foods at a low price. There has been no major shift it fast food prices over the past few years.