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Organic Foods on the Rise

An organic food business can be your ticket to au natural business success.
November 17, 2006

America has a growing appetite for all things healthy. From zero trans-fat snacks to fortified foods with added health benefits, if it's good for the consumer, it's most likely good for business. Even candy is being loaded with omega-3 fatty acids, healthy extracts and vitamin C. But the real buzzword is organic. According to the Organic Trade Association, based in Greenfield, Massachusetts, organic food sales in the U.S. totaled nearly $14 billion in 2005, with double-digit growth expected from 2007 to 2010. According to the association's press secretary, Barbara Haumann, consumers--especially the Generation Y crowd--are happy to do away with added hormones, antibiotics and genetic modifications.

Not sure there's room for more competitors on the organic playing field? Have no fear. Opportunities abound, especially in niche areas like alcohol (according to the Organic Trade Association, organic beers grew from $9 mil-lion in 2003 to $19 million in 2005), candy, condiments and sauces, not to mention food for kids, babies and pets.

Gigi Lee Chang, 39, received a warm welcome when she officially launched her line of organic, frozen baby food products nationwide in major retailers like Wild Oats and Whole Foods Market as well as smaller natural and organic grocery stores this past August. Based in New York City, Plum Organics is the first to launch organic, frozen baby food on a national level, and Chang (above) expects 2007 sales to hit $1 million. Not bad for a company in its infancy.

Getting Started
Thinking of launching your own organic foods business? Follow these tips: