If you're looking for a hot market, look no further than
organic products-those grown and farmed in such a way as to ensure
sustainability (for example, without pesticides). According to the
Organic Trade Association (OTA), the organic market is growing 20
percent every year. "Up to 60 percent of the population [is]
willing to buy organic products," says Holly Givens,
communications director of the OTA.
But to get those products into the hands of consumers,
entrepreneurs must know their market well. The organic food and
beverage market is estimated to be about $6.9 billion and is
expected to grow between $12 billion and $13 billion by 2007,
according to the Natural Marketing Institute (NMI), an organic
market consulting firm in Harleysville, Pennsylvania. Joe Marra,
executive director of NMI, notes all areas are experiencing growth,
especially spices, yogurt, coffee and meats.
Jumping into the trend is Ian Diamond, founder of Organic
Connection Inc. in South Salem, New York. This entrepreneur,
who's been in the organic industry for 20 years, launched his
Web-based organic food delivery company in August 2002. Diamond,
44, owned an organic retail store in Melbourne, Australia, in 1985,
but a drought forced him out of business. He then moved to New York
in 1996.
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Diamond noticed that while organic food in Europe was high-end,
the offerings in the United States were "middle of the
road," he says. "You don't see a wide range of
organic foods, artisan foods or gourmet foods. In Europe, you see
every food [category] covered with organic offerings." Wanting
to replicate that variety here, Diamond set up his food delivery
service, which specializes in organic meats. He projects $300,000
in sales for 2003.
Within any hot market, it pays to find your niche. Rochelle A.
Lavens and Marleen Trader did just that with Heidi's Homemade
Inc. in Columbus, Ohio. Started in 1999, this business
specializes in organic pet food. The entrepreneurs have launched a
brick-and-mortar store, an online store and a wholesale
business.
"My dog, Heidi, got cancer," explains Lavens, who
expects six-figure sales for 2003. "I was devastated."
Lavens researched what went into pet foods and discovered some
ingredients included spoiled foods, waste products and even parts
of euthanized animals. "It was startling," she says.
"I felt like I contributed to her illness." Determined to
help her pet, Lavens, 43, began making organic snacks, part of the
organic diet she believes may have helped extend the dog's life
by two years.
Now, says Trader, 49, the main challenge is educating consumers
about how organic foods can benefit their pets. Lavens agrees:
"You have to do your research. Don't mislead people-know
your suppliers. Are they free range? Are they organic?"
Whatever avenue you choose, the future looks bright. "I see
organic products continuing to become more available in more places
and with increasing variety in the product choices," says
Givens. "There's still room for additional brands and
companies."
While success in the organic market is inspiring, it's
certainly not without its challenges. The federal government
released new regulations in October 2002 detailing the
specifications any product has to meet in order to be called
organic. For any organic start-up, says Givens, learning the new
regulations should be your first step. Check out www.ams.usda.gov/nop for more information.