"Organic food makers must make alliances with ingredients firms and farmers to ensure they have a secure supply of organic ingredients in the face of increasing demand, advises Frost & Sullivan.
In a new report called Industry outlook: Road map of US organic foods market, Frost and Sullivan draws attention to a number of food categories where organic wares are proving popular. These include: dairy, confectionery, snacks, bakery, beverages, meat, baby foods and processed foods.
The consultancy said that demand for organic products is putting pressure on domestic supplies of ingredients that conform to organic standards - and that is causing manufacturers to seek organic fruits, vegetables, grain, seeds, beans and herbs from overseas.
"The constraints in the supply of organic ingredients are a matter of grave concern for the organic food manufacturers, as this can undermine the long-term stability and growth of this otherwise booming market."
Read the article