Future Market Insights

Huge Demand for Organic Food Benefits Organic Lamb Market


Valley Cottage, NY -- (SBWIRE) -- 11/14/2017 -- The demand for organic food has grown by leaps and bounds in the last few years. This is largely due to consumer awareness of the numerous health benefits offered by organic food products such as organic lamb. The U.S. Department of Agriculture's National Agricultural Statistics Service 2014 Organic Survey states that around 14,000 organic farms sold food worth US$ 5.5 billion in 2014 – a rise of 74% since the year 2008. The IFOAM and FiBl Organic International 2017 report data shows that the global organic food market is valued at US$ 80 billion, pointing to huge scope for the organic lamb market.

Key stakeholders in the organic lamb market deliver their products to end-customers through a number of distribution channels. These players offer a wide variety of specialized lamb cuts including breast, dried lamb, leg cut, ground lamb, etc. diversifying their product portfolio and thereby catering to a much larger customer base.

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Processed Lamb More Popular than Raw Lamb in Organic Lamb Market

Processed lamb is anticipated to remain dominant over the course of the forecast period because of several advantages with reduced preparation time being one of them. The processed lamb segment had a revenue share of approx. 2/3rd in organic lamb market, is expected to gain 66 BPS, have a volume of more than 45,000 MT, and be worth almost US$ 160 million by end 2027.

High Rearing Cost Stifles Growth in Organic Lamb Market

Organic lamb needs to be reared under extremely strict guidelines that depend on the regulatory bodies of the country. The livestock diet needs to contain feedstuff that is 100% organic and there can be no antibiotics or growth promotants fed to them.

Along with this, extra care has to be taken of the livestock to adhere to these stringent guidelines and appropriate procedures have to be in place, making it an expensive and time-consuming process. This cost is naturally passed onto the final consumer, making the cost of organic lamb high and hampering the growth prospects of the organic lamb market.

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Rearing Uncertainty and Trust Deficit Challenge in Organic Lamb Market

The rearing of organic lamb depends entirely on the health and wellbeing of the livestock. The prohibition of some medicines such as antibiotics can make livestock highly vulnerable and any sick or injured sheep treated with such medication cannot be sold in the organic lamb market.

In addition to this, the high cost and low availability of organically certified feedstuff and forage is a constraint that needs to be overcome in the organic lamb market. Furthermore, the poor organic certification infrastructure in emerging economies has resulted in customers there being uncertain of the quality and authenticity of organic lamb. Nonetheless, the APEJ processed lamb market alone is on track to push past US$ 30 million by 2027.