Demand for Organic Food Growing

Demand for organic-food products is growing jobs here in Central Texas.

A Colorado grocery chain held a grand opening Tuesday. The owners have plans for more Austin stores, and that is causing a buzz in the natural food industry.

With the shelves full and aisles packed, the Natural Grocers store opened its doors Tuesday morning. Maria Marks was among those attracted to the grand opening shopping blitz at the corner of Guadalupe and 39th.

"For us its been a great opportunity to try out a new store in hopes of being able to meet all our needs, said Marks

Her children can not eat certain processed foods. Its why Marks is willing to pay more for the organic label. While green shoppers pack their bags at the new store, across town, the employees of Greenling were packing and delivering green containers filled with grocery orders. Mason Arnold started his organic grocery delivery business 4 years ago. He now has 15-hundred customers, mostly young professional couples who do not have time to go shopping for groceries.
His drivers, using a small fleet of vans, make 100 to 200 deliveries every day.

"Organic is becoming the norm, at least in this market, and I believe it should in every market, said Arnold.

His organic business model has grown enough to expand. Last year a route was added to San Antonio and there are plans to go to Houston and Dallas. What was once a fad industry, 20 to 30 years ago, is now becoming big business. According to the Organic Trade Association, sales of organic products grew 17% in 2008. The industry hit the $24-billion mark.

There are several green grocery stores in Austin. Whole Foods has it's corporate headquarters downtown. Central Market, which is owned by food chain giant HEB, has several stores in the Austin area. Natural Grocers co-president Kemper Isley is also planning to open 2 more stores in Austin.

Competition is great, our busiest store is right next to a Whole Foods in Boulder, and that's one of their busiest stores also, said Isley.

Sunflower Farmers Market has located in Austin with plans to expand. The Wheatville Co-Op also has a loyal following, like Judith Massengale, who believes more stores means more choice.

"Maybe the competition to keep the prices low, but I also think it is getting it more out there, said Massengale.

There are studies indicating the sales rate for organic products is outpacing sales for conventional food. But organic businesses still have a small share of the market place, and analysts believe prices must continue to drop in order to attract more customers to the stores.