More shoppers are making the switch to organic foods, according to a recent study, and industry experts and retailers expect demand for these products to continue to climb in Greater Des Moines.

The Food Marketing Institute and Prevention magazine reported last month that more than 60 percent of shoppers said their diets could be more healthful, and many are turning to organic foods for their perceived health benefits. Jim Raife, owner of New City Market, doubled the size of his store two years ago, allowing him to expand his selection of organic products.

“These last two years have been really good for us,” Raife said. “The sales growth in organic foods has been steady, with surges at times.”

Organic produce continues to account for much of the organic food sold at New City Market, but Raife says sales of cereals, snack foods and pastas are also strong. He attributes some of the growth in the organic food segment to aging Baby Boomers who want to take control of their health. But he is also seeing more young adults buy organic food. This second group tends to be split between people concerned about health and food safety and those who advocate the environmental benefits of organically grown food.

“The age of 30 is a general marker in a lot of people’s lives where they start to take stock of things and realize that their 20s are gone and they’re not going to live forever,” Raife said. “Once they start thinking about it, they decide they need to eat healthier. Or maybe they’ve just started a family, and they don’t want to raise their kids on junk food.”

According to the Organic Trade Association, a North American trade group that promotes organic food, U.S. organic food sales have grown by about 20 percent each year since 1997. The association estimates that by 2025, the average consumer will buy at least one organic product on a regular basis, increasing annual U.S. organic food sales to $50 billion, up from $13 billion in 2005.

For several years, local shoppers in search of a wide selection of organic products only had a couple of places to choose from: Raife’s store or the locally owned Campbell’s Nutrition stores. But lately, organic products are appearing in more mainstream retail establishments. Hy-Vee Inc. is devoting an increasing amount of shelf space to organic foods in its supermarkets, especially in its new stores and ones that have been remodeled. Some of its stores now have Health Marts, which are “stores within the store” that feature organic and natural foods.

“It’s a category that has grown by leaps and bounds for us,” said Chris Friesleben, a communications specialist for the West-Des Moines based supermarket chain. “Every time I’m in a store, it amazes me how many people are shopping in the Health Mart areas or the organic produce sections.”

Raife said he doesn’t think his business is being hurt by supermarkets’ move toward stocking more organic foods. “You never know how much business you’re losing,” he said. “All I know is that our sales are growing. I think the supermarkets are giving some credibility to the total organic philosophy, and once people get the bug for organic, they’re going to want to come to a market like ours with a storewide selection.”

In addition to supermarkets carrying more organic foods, healthy-foods retail chains such as Whole Foods Market Inc. and Wild Oats Markets Inc. are opening outlets all over the country. Both companies have stores in Omaha, but have not yet crossed into Iowa. According to Sonja Tuitele, a spokeswoman for Boulder, Colo.-based Wild Oats, markets such as Des Moines are becoming more attractive to her company now that some of the larger markets have become saturated with natural and organic food retailers.

“We’re looking for emerging markets that are underserved in this area,” Tuitele said. “We’ve identified about 450 sites in the United States where we don’t have a store and our largest competitor, Whole Foods, doesn’t have a store either. That’s a huge opportunity for growth.”

Tuitele said Wild Oats evaluates whether to enter a new market based on a variety of factors, including a population of at least 100,000, with a residential area that includes a high percentage of people with college degrees and household incomes of $75,000 or more within a 10-minute drive of the store. The company also looks at whether a new market makes sense from a cost standpoint.

“One of the things we look for in a new store is how we can leverage brand awareness and costs for distribution,” Tuitele said. “With Des Moines’ proximity to Omaha, it would be a natural extension for us to have a presence there. We just don’t have a store planned at this time.”

Maury Wills, administrator of the Iowa Department of Agriculture and Land Stewardship’s organic certification program, said the growing demand for organic foods is reflected in the number of farmers and processors seeking organic certification through his office.

“In 2000, when we started offering the organic certification, we certified 27 producers. This year we will certify over 200,” Wills said. “We started with just a few organic food and feed processors, and we expect that to grow to 50-60 this year.”

Wills said there are currently more than 450 certified organic producers in Iowa, and he wants to see that number increase significantly.

“The growth curve for organic farms has been very steady and slow, and we’re looking for more organic producers all the time,” he said. “Consumer demand for organic food is high and continues to grow, to the extent that some processors have had to import organic crops from outside the country. It’s a great opportunity for Iowa farmers.”

Wills said about 100,000 acres of Iowa farmland is currently certified organic.

“Ten years ago, farmers were hesitant to get into organic farming because they were concerned that prices for organic crops wouldn’t stay up,” Wills said. “But prices have stayed up, and I’ve talked with a lot of family farmers who said they would have lost the family farm if they hadn’t converted to organic methods.”

Kathy Eckhouse, who owns the La Quercia prosciutto plant in Norwalk with her husband, Herb, said her company has been affected by a limited supply of organic-certified hogs.

“The meat that we buy to make our Prosciutto Americano and Pancetta Americana has to go through a place that is qualified and accredited to do organic,” Eckhouse said. “There isn’t that much organic product available, but if there was more availability of the product, we could sell more.”

Eckhouse estimates that about half of the pancetta La Quercia produces is organic, while less than 15 percent of the prosciutto is. She says the higher prices the company has to charge for the organic meat has created some price resistance in the marketplace. The company sells its organic prosciutto for $21.95 per pound on its Web site, versus $16.95 per pound for the regular prosciutto.

“It costs a lot more for us to buy the organic hams, and we have to pass that cost through the system,” Eckhouse said. “I’m not sure how sales will grow for our products, but I personally think the organic segment is going to do very well, as people become more aware of what they’re eating.”