The Covid-19 pandemic has led to mounting demand for organic and sustainable foods. Never before has sustainable food been more important, with consumers all over the world turning to the trusted Organic label. Online retailers are registering record sales growth, with some companies limiting the number of its online grocery customers because of the unprecedented demand.
What is driving interest in organic?
Globally there is a growing awareness regarding the health benefits of a natural, balanced diet which is increasing the demand for organically grown and sustainable foods. Organic food get a sales surge whenever there is a food or health scare, as consumers turn to healthier and safer organic range rather than conventional foods. A recent poll found that over 90 percent of respondents said that in their current food shopping, organic was more important than ever. It took over 15 years for global organic product sales to reach USD 50 billion in 2008. Ten years (2018) later, they surpassed the USD 100 billion mark. With COVID-19 changing the way we shop and eat, the next leap to USD 150 billion could be only a few short years away.
Demand surge leads to supply issues
In particular, COVID-19 has placed global supply networks for organic products under extreme pressure. Supply issues are becoming evident, with logistics restrictions and borders shutting down overnight. Staffing and production problems have also been brought on by the pandemic. In the US alone, ocean shipping was down by 25% and railroad volumes down by 20%. Many air freight planes were grounded worldwide.
TradeLink Stands In
Covid-19 has added complexity and cost to every phase of the supply chain, presenting businesses with some of the most challenging conditions in which to survive and thrive. Through our extensive knowledge of every aspect of food supply chains around the world – sourcing & logistics, transport & technologies, financing & distribution, our global team are using the current crisis to take steps to understand these vulnerabilities, taking a fresh look at our supply networks, uncovering and addressing any hidden risks.
The future of online retailing holds many growth opportunities for the organic market giving smaller producers an entrance and depth to their market place which previously could only be reached with difficulty and high resources. Opportunities abound for both producers and retailers alike.
Our fully integrated farm to store procurement channel provides transparency & traceability, predictable, transparent & ethical food supply, whilst accomplishing a positive impact for our farming communities, our planet & stakeholders.
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