Consumers seek healthier, more natural food and drink options.Nature-loving hippies, open your arms wide.

Latest research from Mintel confirms that, in light of prominent health and food safety concerns, the organic movement has most definitely burst onto the mainstream.

Mintel reports that organic food sales have grown a whopping 132% since 2002, while organic beverage sales nearly doubled (97%) during the same period. Together, the organic food and beverage markets now make up a nearly $6 billion dollar a year industry.

"This isn't a niche market full of environmental health nuts and affluent yuppies anymore," says Marcia Mogelonsky, senior research analyst at Mintel. "Organic is now part of the picture for everyone from the Hispanic immigrant mother to the hip suburban teen next door. With health issues and food contamination cases in the news, many people have begun looking for safer, more natural food and drink."

Mintel's exclusive consumer research shows that over half (52%) of Americans purchased organic foods in the past year, while over a quarter (26%) went for organic beverages. This is a notable increase from the just 34% of consumers who bought either organic food or beverage products in 2002. What is more, nearly a third (32%) of adults now report purchasing organic products "as often as possible."

Manufacturers have caught on and Mintel Global New Products Database (GNPD) shows a steady increase in new organic product development. 2006 saw nearly 1600 new organic food and beverage products launched in the US, over twice the number released in 2002 (732). Even retail grocers have sunk their teeth into organics, currently featuring over 300 private label organic products and entire departments dedicated to organic foods.

So how long can this bubble inflate before it bursts? Mintel expects strong, consistent growth for the organic food and beverage market, but it predicts a decline in the rate of growth. Organic food sales are expected to rise 59% by 2012, while the organic beverage market is projected to grow by nearly two-thirds (65%) in that time.

"Organics will undoubtedly continue to thrive, but there are hints that the industry may face increasing challenges," comments Mogelonsky. "Private label brands offer cheaper prices than traditional brands, so while their rapid expansion into organics may encourage more people to buy more organic products, but it could actually hurt market growth."

Additionally, the prices for organic food and drink still turn off many consumers. Mintel's consumer survey revealed that two-thirds of Americans said they would buy more organics if the products cost less. This again suggests potential interest in less expensive private label brands, which seem poised to change the face of organic retail.