Organic Food Sales Surpass $60 Billion in 2022

organic sales chart

Organic Trade Association survey shows growth pace doubled from the previous year.

Washington, D.C. (May 10, 2023)Organic food sales in the United States in 2022 broke through $60 billion for the first time, hitting another high-level mark for the resilient organic sector. Total organic sales—including organic non-food products—were a record $67.6 billion*, according to the 2023 Organic Industry Survey released Wednesday by the Organic Trade Association.

The organic market grew despite challenging headwinds: inflation pressures tightening consumer wallets, supply chain disruptions caused by the pandemic and global political events, a proliferation of competing food labels in the grocery aisles, and a labor shortage felt acutely by organic producers. Inflation heated up costs across the organic supply chain—indeed, the entire food supply chain—and boosted prices in the grocery aisles. As a result, the organic sector reflected the overall food sector, with the value of organic sales rising even as the growth in the volume of sales for some categories slipped.

The sector’s four-percent growth in sales value was nearly twice the pace of growth in 2021. Organic food sales totaled $61.7 billion, while the value of organic non-food sales hit nearly $6 billion. Certified Organic now accounts for 6 percent of total food sales in the United States.

“Organic has proven it can withstand short-term economic storms. Despite the fluctuation of any given moment, Americans are still investing in their personal health, and, with increasing interest, in the environment; organic is the answer,” said Organic Trade Association CEO Tom Chapman. “Organic’s fundamental values remain strong, and consumers have demonstrated they will come back time and again because the organic system is verified, and better for people, the planet, and the economy.”

Produce Still Leads Organic

Organic produce, often the entry point for new organic buyers, easily held its position as the top seller of all organic categories. Sales of organic produce totaled $22 billion, accounting for 15 percent of all fruit and vegetable sales in this country.

Organic beverages were the second best-selling organic category, reporting $9 billion in sales in 2022, up 4 percent. Organic coffee maintained its position as the biggest-selling organic beverage, up almost 7 percent from the year before, with close to $2.3 billion in sales. Organic soft drinks and enhanced drinks broke through $500 million in sales at $503 million and saw robust growth of almost 14 percent.

“Organic beverages continue to climb. They’re an area where shoppers are willing to experiment and are less price sensitive,” noted Angela Jagiello, Director of Education and Insights for OTA and coordinator of the annual survey. “Soft and enhanced drinks had a great year, with the non-alcoholic trend being a big contributing factor. Many younger shoppers are reducing or eliminating alcohol, and these organic beverages are a celebratory and sophisticated alternative.”

The third highest-selling organic category was dairy and eggs at $7.9 billion, up over 7 percent from the previous year. Organic dairy and eggs now constitute close to 8 percent of the total dairy and egg market. Continued demand and inflationary price increases helped boost the dollar sales in that category; yogurt and eggs both saw double-digit growth, with organic yogurt sales jumping by over 12 percent to $1.5 billion, and organic egg sales by 11 percent to around $1.2 billion.

While the growth pace of organic sales has predictably slowed from the barnburner rates during the pandemic, a wide and diverse smattering of organic products showed outstanding growth as consumers bring organic more fully into their lives. To name a few: organic baby food and formula sales up almost 13 percent to $1.4 billion, sales of organic rice, grains, and potato products up over 10 percent to $387 million, organic dip sales up a big 18 percent to $194 million, and sales of organic pork up more than 10 percent to $63 million.

In the organic non-food category, sales of organic linens and clothing accounted for some 40 percent of sales, recording $2.4 billion in sales for a gain of 2.5 percent. Organic supplement sales held steady with sales of around $2 billion, while organic personal care products rose over 5 percent to $1.2 billion.

Organic Future Is Bright 

The success of organic is not a new story. In the last ten years, organic sales have more than doubled as Americans are eating and using more organic products than ever before.  Total organic sales broke through the $50 billion mark for the first time in 2018, and organic food sales hit $50 billion for the first time just a few years ago in 2019.

“Organic is at that right intersection of environmental and personal health,” said OTA’s Chapman. “Organic brings together the interest in human health and a healthy environment, and that offers organic a positive pathway forward and will help organic businesses withstand challenges in the future.”

This year’s survey was conducted early in 2023 from January 13 through April 4 and was produced on behalf of the Organic Trade Association by Nutrition Business Journal (NBJ). Numerous data sources were compiled to create as complete a picture as possible of the organic industry which consists largely of private companies. Inputs include but are not limited to point-of-sale data, expert interviews, annual report data, and in-depth direct survey data. About 100 companies completed a significant portion of the in-depth survey.

*Based on newly available data for the Convenience Store channel, OTA has updated its data model, and as a result, restated current and historical figures for several food categories.

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For more information about the Organic Trade Association, visit: https://www.ota.com.


Organic Survey Shows Steady Sales Growth, Stabilizing Purchasing Patterns

Market volatility and pantry loading subsiding, industry growth shifting back toward historic trends, according to Organic Trade Association.

Washington DC (June 2, 2022)—Following an unprecedented year marked by pantry loading and supply shortages, the Organic Trade Association’s (OTA) latest Organic Industry Survey shows consumers returned to more stable, buy-as-you-need shopping patterns in 2021. Between 2020 and 2021, organic sales surpassed $63 billion, with $1.4 billion (2 percent) total growth over the year. Food sales, which comprise over 90 percent of organic sales, rose to $57.5 billion (roughly 2 percent growth), and non-food sales reached $6 billion in sales (7 percent growth).

“Like every other industry, organic has been through many twists and turns over the last few years, but the industry’s resilience and creativity has kept us going strong,” says OTA CEO and Executive Director Tom Chapman, “In 2020, organic significantly increased its market foothold as Americans took a closer look at the products in their home and gravitated toward healthier choices. When pandemic purchasing habits and supply shortages began to ease in 2021, we saw the strongest performance from categories that were able to remain flexible, despite the shifting landscape. That ability to adapt and stay responsive to consumer and producer needs is a key part of organic’s continued growth and success.”

Fruits and Vegetables

Organic fruits and vegetables accounted for 15 percent of the total product market and brought in over $21 billion in revenue in 2021; an approximately 4.5 percent increase over 2020. Fresh produce and dried beans, fruits, and vegetables drove growth in the category, showing 6 and 6.5 percent growth over the year, respectively. Frozen and canned foods declined slightly as consumers reduced pantry loading.

Dairy, Eggs, and Meat

As any American will remember, staples like milk and eggs were among the first things to vanish off the shelves at the beginning of the pandemic. After hitting the highest growth rate in over a decade in 2020, the organic dairy and egg category unsurprisingly leveled off in 2021 as supply scares became less frequent. A tight market for organic feed and challenging international supply chains contributed to higher prices and lower total sales. Although organic dairy and eggs sales remained relatively flat through 2021, the category still outperformed 2019 sales by nearly 11 percent.

Despite unique supply chain constraints and the strict rules for raising organic poultry, livestock, and seafood, organic meat sales increased in 2021 by 2.5 percent, representing nearly $2 billion in annual sales. Organic poultry was the strongest performer in this category, with 4.7 percent growth and over $1 billion in sales.

Organic dairy, eggs, and meat are likely to be further bolstered by the recently finalized Origin of Livestock (OOL) rule and the pending Organic Livestock Poultry Standards (OLPS) proposed rule. The rule clarifies the standards for transitioning dairy livestock to organic milk production and aims to level the playing field for all organic dairy producers. Organic livestock and poultry producers are also eagerly awaiting the OLPS rule, which would update animal welfare regulations—particularly for organic egg laying chickens—to bring all organic production more in-line with consumer expectations and best practices.

Packaged and Prepared Foods, Snacks

Packaged and prepared organic foods experienced an overall decline of around 5 percent in 2021, representing a shift away from pantry loading and toward more measured purchasing patterns. The sub-categories that saw the most significant growth spikes in 2020—canned soups, nut butters, and pasta sauces—consequently saw the largest decreases in 2021. Organic baby food, which saw over 11 percent growth ($1.2 billion in sales) was the biggest bright spot in the packaged and prepared category in 2021. Baby food has traditionally been a strong point of entry for shoppers new to organic.

Snacks, the only organic category to contract in 2020, saw healthy growth of six percent ($3.3 billion in sales). With offices, gyms, schools, and many other destinations reopening, Americans were increasingly looking for healthy, organic foods on the go. Nutrition bars made the most headway in this category, with nearly 15 percent growth and over $1 billion in sales.

Beverages

Organic beverages experienced strong growth (8 percent, the highest of all major categories) over 2021 thanks to the category’s ability to remain nimble and adjust quickly to shifting consumer needs and habits. As Americans increasingly transitioned into hybrid and work-from-home models, at-home coffee sales received a significant boost. Organic coffee topped the beverage performance chart with more than 5 percent growth and over $2 billion in annual sales.

Breads and Grains

Organic bread and grains sales tapered off slightly in 2021 as the pandemic baking boom subsided, but sales were still strong at $6.2 billion overall. Frozen and fresh breads, the largest subcategory, saw a modest increase of 1.6 percent. Baking ingredients, pastas, rice, and other dry grains saw overall declines. This category may continue to struggle as the Russian invasion of Ukraine and other serious domestic and international issues constrain supply chains.

Non-Food Products

In this category, fiber, supplements, and personal care products have been the most dominant performers; each saw growth rates of between 5.5–8.5 percent in 2021. Textiles, the largest non-food sub-category, represented 40 percent of the category’s total sales and brought in $2.3 billion in annual sales. Overall, non-food products saw six percent growth in 2021 and represented nearly $6 billion in sales.

“Organic’s ability to retain the market footholds gained during 2020 and continue to grow despite unprecedented challenges and uncertainty is a testament to the strength of our industry and our products,” says Chapman. “To keep organic strong, the industry will need to continue developing innovative solutions to supply chain weaknesses and prioritizing efforts to engage and educate organic shoppers and businesses.”

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For more information about the Organic Trade Association, visit: https://www.ota.com.


U.S. Organic Sales Soar to New High

Driven by a swing to home cooking during the pandemic, U.S. organic sales soared to new highs in 2020, jumping by a record 12.4 percent to $61.9 billion. It marked the first time that total sales of organic food and non-food products have surpassed $60 billion. This growth rate is more than twice the 2019 pace of 5 percent, according to the 2021 Organic Industry Survey released Tuesday by the Organic Trade Association.

In almost every organic food category, demand jumped by near-record levels, propelling U.S. organic food sales in 2020 up a record 12.8 percent to a new high of $56.4 billion. In 2020, almost 6 percent of the food sold in the United States was certified organic.

The Covid-19 pandemic caused consumer dollars to shift almost overnight from restaurants and carry-out to groceries, with traditional staples and pantry and freezer items flying off the shelves.

Leading the way was fresh organic produce, with sales rising by nearly 11 percent in 2020. Frozen and canned fruits and vegetables also jumped with frozen sales alone rising by more than 28 percent. Including frozen, canned, and dried products, total sales of organic fruit and vegetables in 2020 were $20.4 billion. More than 15 percent of the fruits and vegetables sold in this country now are organic.

Pantry stocking was overwhelmingly the main growth driver in 2020. Sales of organic flours and baked goods grew by 30 percent.

Consumers also turned to “meal support” products to help them in the kitchen. Sales of sauces and spices pushed the $2.4 billion condiments category to a growth rate of 31 percent, and organic spice sales jumped by 51 percent, more than triple the growth rate of 15 percent in 2019.

Meat, poultry & fish, the smallest of the organic categories at $1.7 billion, had the second highest growth rate of nearly 25 percent.

While the growth in organic food sales is not expected to continue at 2020’s fast rate, organic food sales are expected to stay on a strong growth path in 2021. It is anticipated that the grocery industry at large will get a lasting lift from the pandemic as many consumers continue to cook more at home.

“We’ve seen a great many changes during the pandemic, and some of them are here to stay,” said Laura Batcha, CEO and Executive Director of the Organic Trade Association. “What’s come out of COVID is a renewed awareness of the importance of maintaining our health, and the important role of nutritious food. For more and more consumers, that means organic. We’ll be eating in restaurants again, but many of us will also be eating and cooking more at home. We’ll see more organic everywhere—in the stores and on our plates.”

This year’s 2021 Organic Industry Survey was conducted from January through March 2021. Nearly 200 companies participated. To purchase the full report, visit the Organic Trade Association website. OTA’s full press release on this topic can be found online here. For more information about organic certification, visit MCIA Organic Services.