Natural and organic food sectors likely to grow.

Sustained growth and attractive investment opportunities has been forecast for the natural and organic foods industries in the latest Better Food & Nutrition Industry Report issued by the investment bank Adams, Harkness & Hill (AH&H). The firm believes that the mainstreaming of natural and organic foods, currently a $15 billion category, will drive double-digit annual growth over the next several years.

"Over the last decade, we've seen the beginnings of the industrialization and mainstreaming of natural and organic foods, but the category is still young and growing -- which implies further expansion ahead. And, it's worth noting that recent negative trends in the overall economy have had little effect on the growth of the natural and organic category," said Scott Van Winkle, analyst at Adams, Harkness & Hill.

AH&H estimates natural food segment growth at 8 to 10 percent for the next several years and organic food segment growth at a more robust 20 to 25 percent rate. Demographic drivers that will fuel that growth include the aging of baby boomers, the rise in self care, better understanding of the correlation between diet and health, favorable regulation and increased consumer understanding of the negative effects of pesticides, food additives and genetically engineered ingredients.