In the last ten years, demand for organic foods has doubled, and is expected to more than double again in the next few years, increasing from just under $11 billion in 2004 to more than $30 billion by 2007. While organics represent only about 2 per cent of sales in both retail and food service channels, this share is expected to increase. In food service, more than half of operators surveyed by Restaurants & Institutions (R &I) in early 2005 report more orders for organic menu items than two years ago. While food service currently represents only about 4 per cent of organic sales, use of organic products in U.S. food service is increasing by an estimated 20 per cent annually. In fine dining, almost two-third of respondents reported that they already menu organic, and in institutional food service, some college and university operators are trying to achieve as close to 100 per cent organic as supplies will permit. The challenges of supply are formidable, however. Prices fluctuate wildly from summer to winter, making seasonal menus essential. In fine dining, customers will pay extra for organic, and don’t mind, or even welcome, the frequent changes of menu. But for chains like Panera and O’Naturals, menu stability is important and organic supplies are a constant challenge. Organic on the Menu: Healthy Eating Trends in U.S. Restaurants examines the potentially lucrative - and risky - market for organic in foodservice. This Packaged Facts report discusses market trends and drivers to growth, profiles supplies, producers and a wide range of foodservice establishments engaged in organic dining (from white tablecloth restaurants to college foodservice operations), and discusses the consumers who are instrumental in bringing healthy eating to the eating out experience.
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