Healthy eating continues to gain momentum, and the Fresh Trends 2022 Study shows people equate organic produce with healthy — even more so than produce in general.
“People are willing to spend more for food that they know is going to positively impact their health versus something that may create additional health complications in the long term,” said Scott Mabs, CEO of Homegrown Organic Farms, Porterville, Calif. “The outlook for organic fresh produce is very encouraging.”
Many consumers already believe that organic produce is healthier than conventionally grown produce. The USDA seems to imply the same in its first fresh produce sales report of the year.
The first week of 2022 was marked by vibrant sales for healthy eating, according to the USDA's National Retail Report for specialty crops for the week ending Jan. 7.
“Organic produce comprised a notable 19% of ads this week as retailers strove to meet the demands of shoppers ready to make good on their New Year's promises of healthier eating,” the report said.
If price wasn't an issue, 52% of shoppers would buy organic, and 57% would buy locally grown produce, according to our Fresh Trends 2022 study.
About 20% of the fresh produce sold at Brooklyn Fare's three stores in New York City is organic, Regional Manager Brandon Issa said.
“I think the pandemic has made people more aware of the quality they're buying, and prices are getting more reasonable. It used to be like a Mercedes-Benz or Rolls-Royce. Not everybody can do that,” Issa said.
Organics, floral and tropical are the fastest growing divisions of his company, said J.M. Procacci, CEO of Philadelphia-based Procacci Holdings.
“Organic demand never changed much, except when retail cut back on the number of (stock-keeping units),” said Rick Feighery, vice president of sales at Procacci Brothers Sales Corp., Philadelphia. “We're still seeing growth, year over year. With scale, growers are becoming more efficient, and we're seeing streamlining of pricing.”
Still, organics battle the same high cost of packaging and transportation as conventional produce does.
“Everyone says they want loose produce, but what's sold in organics is what's in packaging, and in packaging, the lead times are a year out because of supply issues. It's crazy,” Feighery said.
The COVID-19 pandemic and major supply chain interruptions have caused packaging to become one of the most difficult changes over the past couple of years, Mabs said.
“Honestly, I'm not sure where it is heading, but I know that it will continue to change going forward,” he said.
Organic's higher-than-conventional price in many categories is a gap that's slowly closing as shippers streamline production costs and increase acreage to meet demand, said Armand Lobato, who has 40-plus years of senior management retail and foodservice experience. He's now foodservice promotions director at the Idaho Potato Commission and a regular contributor of columns to The Packer.
At Morton Williams Supermarkets in New York City, there's a large organic apple section. (Photo by Amy Sowder)
Organic produce sales continue to climb, especially as more and more younger shoppers are viewing organic as a normal, positive and healthful option.
“Organic produce has earned its presence in both conventional and organic-centric markets, long shedding its early reputation of being only applicable to specialty or niche marketing,” Lobato said.
Produce merchandisers, managers and directors sell organic produce in different ways for food safety reasons — usually for sales reasons but also for logistical ones.
Marc Goldman, director of produce and floral at Morton Williams Supermarkets, Bronx, N.Y., prefers to segregate organics from conventional to avoid any potential cross-contamination. The retailer has 14 stores in Manhattan, the original store in the Bronx and one store in New Jersey.
“With the pandemic, organics got more popular, and it's always growing. The biggest issue we have is space,” Goldman said.
Check out our top organic stories of 2021.
At Longo's, a retailer with 36 locations in the Greater Toronto Area of Ontario, all the apples are treated with a special organic coating that preserves shelf life, said Mimmo Franzone, senior director of produce, floral and merchandising.
The apples are wearing Apeel Sciences' protective formulation listed by the Organic Materials Review Institute for the growers and distributors of USDA-certified organic produce. The Goleta, Calif.-based company's treatment helps reduce postharvest food waste, overpackaging and costly controlled-atmosphere storage.
Longo's leadership cares about carrying organic products and also promoting ethical growing, he said.
“Consumers are asking, ‘Are they using recycled water, sustainable farming practices?'” Franzone said. “Everyone needs to do their part along the entire supply chain.”