Organic fresh produce sales grew by 3% in 2022, while volume declined by 3.7%, according to the 2022 Organic Produce Performance Report from Organic Produce Network and Category Partners.
Organic fresh produce sales topped $9.4 billion for the year, the report said.
The report said the organic fresh berry category, which includes strawberries, blueberries, raspberries and blackberries, was the top organic produce category, holding more than 16% of organic fresh produce dollars in 2022. Overall fresh berry sales topped $1.6 billion for the year, with organic packaged salads a close second at $1.55 billion, according to the report.
Total fresh produce sales gained 7.3% in dollars for the year but experienced a 1.3% decline in volume. Organic fresh produce made up 12% of all fresh produce sales and accounted for 7% of all fresh produce volume, the report said.
“In an inflationary time like this, we expect to see the growth of sales dollars and volume declines repeated for the majority of organic and conventional fresh produce items,” Tom Barnes, president of Category Partners, said in the release. “The average conventional price per pound grew by 9.2% compared to 2021 while organic produce price per pound rose by 7%. With rising prices, we may see more selective organic shopping from consumers as they substitute higher-priced organic items for conventional ones.”
(Graphic courtesy of Organic Produce Network and Category Partners)
Organic apples were the largest example of substitution as their price per pound increased by more than double the amount of conventional apples, resulting in a volume decline of 10.3%, the report said.
For 2022, 13 of the top 20 organic produce categories (by total sales) posted increases in dollars, with organic onions generating the largest increase (15.4%), followed by cucumbers, potatoes and avocados. Conversely, green beans posted the largest drop in dollars (5%), and lettuce and bell peppers also posted noticeable declines in dollars for the year.
Additionally, 14 of the top 20 organic produce sales categories posted declines in volume, with only 10 of those categories showing positive dollar growth. Organic bananas continued to be the biggest volume mover despite a 1.2% volume decline in 2022. Organic bananas showed a 3.9% increase in sales from the previous year, according to the report.
Of note, potatoes and cabbage, typically regarded as inflation busters, showed a 10% increase in dollar sales and a nominal 1% growth in volume. Organic grapes had a stellar year with a 6.9% increase in volume and an 8.3% increase in sales.
Organic performance in 2022 was consistent among all regions of the nation — dollars grew and volume declined, according to the report.
The Northeast saw the lowest dollar growth and highest volume decline, while the South continues to show the most year-over-year improvement.
Organic fresh produce prices in aggregate remained substantially higher than conventional, with 2022 showing the price gap between conventional and organics the largest it has been in the past four years at $1.55 per pound.
“In an inflationary time period, it is important for organic producers to understand how their pricing impacts behavior among various consumer segments and to reach those consumers with the health and value benefits associated with organics,” Barnes said in the release.
The fourth quarter of 2022 saw the 12th consecutive quarter of organic sales growth, with a modest 1.4% increase from the same period last year. Organic produce sales for the fourth quarter topped $2.1 billion, with the grape category leading the way in year-over-year dollar and volume growth, according to the report.
The 2022 Organic Produce Performance Report used Nielsen retail scan data covering total food sales and outlets in the U.S. from January through December 2022. A complete version of the report, including information on the top 20 organic fresh produce categories, will be made available on the Organic Produce Network website in mid-February, according to the release.