Organic Food Industry Reaches New Heights: $60 Billion in Sales
The demand for organic food is increasing steadily over the years. According to estimates, 82% of Americans purchase organic food, with conventional grocery shops accounting for the majority of sales. In 2021, organic food sales in the U.S. stood at an impressive 57.5 billion dollars. However, 2022 did even better, surpassing the $60 billion threshold for the first time. The total organic sales, including organic non-food products, topped a record $67.6 billion.
Organic food sales— $61.7 billion
Organic non-food sales— $6 billion
The value of the organic industry has increased by 4%, almost double the growth from the previous year. The percentage of food sales in the U.S. that are certified organic has risen to 6%. Organic has been resilient in the face of sudden financial crises, and it is the answer, according to Tom Chapman, CEO of the Organic Trade Association. "The fundamental values of organic remain strong, and consumers have shown they come back again and again because the organic system is controlled and better for people, the planet, and the economy," said Chapman.
Top 3 Selling Organic Food Items in 2022
Fruits and vegetables— accounted for around 22% ($15 billion) of the total sales of organic items.
Organic beverages— accounted for $9 billion out of the total sales (4% growth from the previous year). Organic coffee retained its position as the most popular organic beverage, closing sales of almost $2.3 billion and over a 7% increase from last year. Organic soft drinks and enhanced beverages also achieved a remarkable 14% (approx.) growth, reaching up to $503 million in sales.
Dairy and eggs — The market share for organic dairy products and eggs was close to 8%, and it accounted for $7.9 billion in sales (7% growth from the previous year). In this category, yogurt and eggs experienced double-digit growth. Sales of organic yogurt increased by over 11% to $1.5 billion and organic eggs by around 11% to about $1.2 billion.
Other items:
Rice, cereals, and potato products increased by over 10% to $387 million. Dips increased by a significant 18% to $194 million. Pork increased by more than 10% to $63 million.
Top Selling Organic Non-Food Items
Organic apparel and linens made up almost 40% of all sales in the organic non-food category, with $2.4 billion in sales and an increase of 2.5%. Organic supplements sustained their position at roughly $2 billion. Meanwhile, organic personal care items increased by more than 5% to $1.2 billion.
The demand for organic products has increased even amid difficult challenges like price hikes, pandemic-caused supply chain interruptions, international political events, etc. While the sales volumes for certain categories inevitably dropped owing to the aforementioned reasons, overall organic sales value has grown. As consumers incorporate organic more thoroughly into their lifestyles, the increase of various organic products in the market is rising exceptionally.
Why purchase Organic?
Organically grown items are healthier and free of pesticides, antibiotics, and other chemical residues. They are produced using environmentally friendly and nutritious methods, boasting superior dietary values as compared to chemically processed foods. Conventional farming practices like excessive use of pesticides and monocropping diminish soil fertility, increase water salinity, etc. Organic farmers, on the other hand, aim to minimize environmental harm through biofertilizers, manual weed management, crop rotation, etc. Organic farming also encourages a more compassionate treatment of animals, raising livestock hormone- and antibiotic-free.
Official report source: U.S. Organic Industry Survey 2023 (OTA)
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