Growing Commitment to Organic Cotton
From Farmers, Retailers and Consumers

By Brendan Condit and Sandra Marquardt


With the growth of the organic cotton market hitting double-digit, or even triple-digit growth year after year, it’s apparent that the word is out about the environmental and long-term health benefits. Today, all around the world, farmers, retailers and consumers are making commitments to support this movement from the ground up.

According to the Organic Cotton Farm and Fiber Report 2008, produced by Organic Exchange (OE), a nonprofit committed to expanding the use of organic fiber, the amount of organic cotton grown worldwide in 2007-2008 increased to 145,872 metric tons (MT) (668,581 bales)—representing a 152 percent increase from the 57,932 MT (265,517 bales) produced the year before. Today, organic cotton is grown on 161,000 hectares in 22 countries and represents 0.55 percent of world cotton production. This is an impressive amount when one considers the staggering size of the conventional cotton market and the relative infancy of the organic cotton movement.

The increase in production was driven in large by the heightened demand for organic cotton on the part of retailers. According to the Organic Exchange Organic Cotton Market Report 2007, the organic cotton market topped one billion U.S. dollars in 2006, with market growth anticipated to reach $3.5 billion in 2008. (Data from the 2007 market will be available in Spring, 2008. The current economic downturn will likely slow the rapid trajectory the organic fiber marketplace has achieved over the past several years. However, as with the larger sustainability sector, the market base has become an indelible part of the apparel and home textile landscape, incorporated into the business and product strategies of companies of all sizes, and thus will continue to grow as awareness increases.

Fiber Production Growth
According to OE’s recent fiber report, the top five organic cotton producing countries in the 2007-2008 crop year were, in order of scale, India (51 percent), Syria (19 percent), Turkey (17 percent), China (5 percent) and Tanzania (2 percent). Together, these five countries accounted for 94 percent of world production. Nicaragua and South Africa were new arrivals, with their first certified organic cotton production in that year.

In a major turnaround, India took over Turkey’s long-time standing as the number one producer of organic cotton in the world. Much of this production in India took place without contractual arrangements, but was driven instead by the assumption that demand will expand. Increased production in India is also due to a) members of the Indian supply chain initiating their own projects and b) brands or retailers making long-term commitments to farmers in India. The proximity of the active Indian textile industry consuming much of the fiber is a strong factor behind growth in the country as well.

Organic cotton production in India also has the strong backing of the country’s government, which has formed an Organic Cotton Advisory Board, of which OE-India is a member. In addition, a National Center for Organic Farming (NCOF) has been established under the Ministry of Agriculture in New Delhi. The NCOF works to improve farming practices and fund research through non-govermental organizations(NGOs), universities and research institutes.

Continued expansion will occur in the years to come, especially in areas where clear market signals and strategic partnerships are in place. OE estimates organic cotton fiber production for 2008/09 will be approximately 224,722 MT, a 54 percent increase from the 145,872MT produced in 2007/08. Certified organic cotton will be produced for the first time in Bangladesh, and Argentinean farmers may also certify their production.

In the event of higher than anticipated expansion or unusually strong harvests, organic cotton production in 2008/09 could reach between 250,000 MT (462,486 bales) and 280,000 MT (630,914 bales), representing a growth of 71 to 92 percent, respectively.

Organic Market Growth
Not only is organic cotton production increasing, but the incorporation of organic fiber into product lines has become the norm, rather than the exception.

Some of the world’s largest companies are now committed to organic cotton, including Wal-Mart, Nike, C&A and others. According to the Organic Exchange 2007 Market Report, the top five purchasers of organic cotton in 2006 were Wal-Mart (USA), Nike (USA), Coop Switzerland, Patagonia (USA) and Otto (Germany). Woolworth’s South Africa and C&A (Belgium) in 2007 introduced large programs and OE expects the companies to make the Top Five list in 2008, soon to be announced.

Demand particularly in the North American and European markets has driven this trend and continues to do so. Along with the production of organic cotton fiber, the market for finished goods has increased as well, from $240M in 2002 to nearly $2B in 2007, with growth anticipated to reach $3.5 billion by the end of 2008. Given that the quantity, variety and availability of organic textiles is constantly increasing, Organic Exchange expects the market to exceed $5 billion by the end of 2009.

The organic cotton market has experienced exponential growth for a number of reasons. The foremost reasons are innovative thinking on the part of brands and manufacturers about the social and environmental impact of their products and improved consumer awareness of sustainability issues.

Companies are making sustainability a core part of their business models. As Nike’s most recent mission statement notes, in reference to the environmental impacts of manufacturing, “To continue with business as usual, ignoring the impact, is not an option.”

In addition, an increased focus on sustainable products at international events such as MAGIC Marketplace and Premier Vision, two of the world’s largest fabric and apparel shows; extensive media coverage of organic fiber products in international consumer and trade publications; and the adoption of organic fiber by many large-scale brands, has brought a tremendous breadth of organic products to the marketplace.

Some examples of actions taken to incorporate organic cotton into major product lines include:

• Nike moved ever closer to its goal of including 5 percent organic cotton in all its cotton-containing apparel by 2010 and expanding its offering of 100 percent organic cotton products.

Company estimates show that more than nine percent of the cotton Nike used globally was organic in 2007, representing approximately 11 million pounds (22,917 bales). This is a significant increase from 1997, when the company purchased just 250,000 pounds (521 bales) of certified organic cotton for use in its fall 1998 apparel products.

• Nordstrom launched its use of organic cotton in 2007, quadrupling its use by the end of 2008. The company plans to increase its use of organic cotton fiber each year.

• Pottery Barn launched several lines of 100 percent organic cotton bedding. More than half of its bedding contained five percent organic cotton by 2008.

• Timberland shifted more than five percent of its overall cotton purchases and 100 percent of its promotional t-shirts to organic cotton and has committed to increase its organic consumption to a minimum of 10 percent by 2010, the equivalent of more than one million pounds of organic cotton. The company’s ultimate goal is to convert all of the cotton it uses to organic.

• Under the Canopy has expanded sales to multiple major stores in the United States, including Fortunoff, Macy’s, and Bed, Bath and Beyond.

Companies are changing the way they run parts of their businesses in order to make organic work for them. Many of the above brands, having started by using organic cotton as a slice of their corporate social responsibility (CSR) strategy, have realized that there are actually greater opportunities in organic. Outdoor clothing company Patagonia has made organic cotton an integral part of its brand by switching to 100 percent organic cotton for all its cotton use.

The popularity of organic cotton among companies and consumers alike has caused companies to examine how else they can further “green” their product lines. This has spawned an increased interest in other organic fibers such as wool and linen as well as organic leather, hemp and bamboo, which became certified and available in 2007 and 2008.

Mixing and Matching: Farmers Working with Retailers
Several forward-thinking brands have gone beyond the integration of organic fiber into their products. “Farmers and retailers are starting to work hand in hand to drive the conversion to and expansion of the organic cotton market,” notes LaRhea Pepper, OE executive director.

Seeing a way to build mutually beneficial partnerships, contribute to very specific and positive social, economic, and environmental change, sustainably increase the production of organic cotton fiber, and lock down appropriate fiber in the right region at the right price, these brands have partnered directly with farmers and farming projects. For example:

• In 2007 OE, C&A Europe and the Shell Foundation entered into an ambitious multi-year partnership to support organic farming and community development and to build capacity for sustainable manufacturing based in India.

Over the next five years, this partnership will improve the lives and livelihoods of more than 50,000 farmers by improving soil and farming conditions, generating economic opportunity and investing in rural farming communities. This partnership will also create sustainable value-chain business models, tools and information which support replication and scale up approaches for other farmers, manufacturers and brands.

• OE, Woolworth’s South Africa (WWSA), Cotton South Africa and the country’s Agricultural Research Council (ARC), with the financial support of ComMark Trust, are undertaking pilot projects with existing WWSA suppliers and small- to large-scale cotton farmers. This will lead to the country’s first commercial-scale organic cotton fiber production and vertical processing operations. 2007/2008 was the country’s first organic cotton crop, producing seven MT (32 bales) of organic cotton, which WWSA plans to use in its product line.

• Nordstrom is working with Organic Exchange to help 5,000 West Nile, Uganda organic cotton farmers improve their production and develop their management and organizational capacity.

Nordstrom will also help Organic Exchange work with the National Organic Agriculture Movement of Uganda to improve delivery of training and market access programs in the country.

• Greensource, a major supplier to Macy’s, Kohl’s, Sam’s Club and Wal-Mart, works closely with a farming cooperative of 380 
farmers in Pakistan’s Baluchistan province. 

Together with its partner, Kings Farming Group, Greensource in 2005-2007 built schools next to the fields (the nearest school was 60 miles away). Greensource/ Kings also supplies free trucking to transport bales and in 2008 established its own ginning facility.

Future Challenges
Despite the explosive growth of the organic cotton industry during the last decade, the industry faces challenges in the years to come. The most speculated challenge is the slowing global economy. To be certain, the rapid growth of the organic cotton industry will slow, but many companies believe that the organic cotton industry will nonetheless continue to get stronger.

Anthony Corsano, CEO of Anvil Knitwear, notes, “The current economic climate will have an impact on the rate of growth of our organic activewear line, but we still expect significant increases in sales as our organic and eco-friendly products continue to grow.” He continued, “The overall impact of providing organic and eco-friendly products has had a measurable positive effect on sales of all of our products. The demand for products made by companies guided by a higher social and environmental philosophy has never been stronger. More now than ever, customers (businesses and mass consumers alike) insist on doing business with suppliers who share their values.”

Indeed, it appears that with less to spend, consumers are choosing their purchases more carefully, rather than cutting back across the board. This view is shared by Nick Chiarelli, director of consumer trends at GfK Roper Consulting. A central element of Chiarelli’s presentation during the 2008 Organic Exchange Global Conference in October was consumer research which suggested that when faced with economic uncertainty, consumers were likely to reach for products that demonstrated greater value, even when more expensive.

Pressures for product integrity and uncertainty in the global marketplace will surely influence members of the organic cotton value chain, but as with most challenges, they also represent significant opportunities.

Building a turnkey approach to product integrity will be difficult, but the result will protect the future of the industry and position brands to compete for shifting consumer values.

Similarly, while market oscillations may dampen the swift growth of the industry, organic cotton is here to stay. Companies and consumers alike are recognizing and more clearly presenting the value of organic fibers, helping to create a strong base for the industry.

With global production increasing and renewed commitment to organic fiber use from companies representing all different sizes, focuses, and demographics, the organic cotton market will continue to grow.

Note: Much of the information in this report is from the upcoming Organic Exchange Organic Cotton Market Report, to be released in Spring, 2009.

Brendan Condit is communications manager for Organic Exchange (www.organicexchange.org), a nonprofit organization dedicated to the expansion of organic fiber agriculture worldwide. Since its founding in 2002, Organic Exchange has overseen and contributed to extraordinary growth in the organic fiber market. He can be reached at brendan@organicexchange.org.

Sandra Marquardt is president of On the Mark Public Relations (www.onthemarkpr.com) and lead author of the upcoming Organic Exchange Organic Cotton Market Report as well as a frequent contributor to Organic Processing Magazine. She can be reached at smarquardt@onthemarkpr.com.