U.S. sales of certified organic products approached $70 billion in 2023, a new record for the sector, according to a new survey from the Organic Trade Association.
U.S. organic marketplace sales hit $69.7 billion in 2023, up 3.4% compared with 2022, according to the 2024 Organic Industry Survey from the OTA. Organic food sales in 2023 totaled $63.8 billion and sales of organic non-food products totaled $5.9 billion.
In 2023, the organic fresh fruit and vegetable category grew by 2.6% to $20.5 billion, the survey said. Organic produce, the biggest single component of organic food sales, now accounts for more than 15% U.S. fruit and vegetable sales, according to the OTA survey.
Top sellers in the organic produce section were avocados, berries, apples, carrots and packaged salads, and organic bananas saw stronger growth in 2023 than non-organic bananas, according to a news release.
“It is encouraging to see that organic is growing at basically the same rate as the total market,” OTA co-CEO Tom Chapman said in the release. “In the face of inflation and considering organic is already seen as a premium category, the current growth shows that consumers continue to choose organic amidst economic challenges and price increases. Although organic is now a maturing sector in the marketplace, we still have plenty of room to grow.”
OTA co-CEO Matthew Dillon said continued growth in organic sales in part hinges on consumer education.
“Whether it's accessing healthy foods, improving transparency in supply chains, mitigating climate change, supporting rural economic resilience, protecting natural resources, or realizing the multitude of other benefits, effectively communicating and delivering on these promises is the key to expanding organic’s share of our dinner plate,” Dillon said in the release.
In 2023, the increase in dollar sales in the organic market was driven more by pricing than unit sales, the release said. Increases in unit sales were reported for up to 40% of the products tracked in this year’s survey.
The survey also showed that prices for many non-organic products climbed at a faster rate than organic products, according to the release.
The narrowing gap between conventional and organic food is closing, which the OTA said should help fuel growth for organic products in 2024.
The number of claims and labels continued to expand in the retail aisles in 2023, but the organic seal stayed a standout with consumers, according to OTA.
A growing consumer focus on personal and family health, sustainability and a desire for clean products free from antibiotics, hormones, preservatives and dyes kept shoppers turning to organic.
More consumers are aware of the potential health benefits associated with organic foods, and many consumers, especially Generation Z, are increasingly conscious of the ethical implications of their food choices and are looking for products that align with their values, such as animal welfare, fair trade and support for organic farmers, the release said.
Research is showing a consistent and growing interest in organic from millennials and Gen Z, according to the OTA.
“These generations grew up with organic and sustainability, and the health of people and planet, are all top of mind for these consumers,” OTA said in the release.
Industry experts see this as an opportunity for organic, with the sector well positioned to meet the product attributes and values sought by consumers today and for future generations, the release said. By 2030, the U.S. population will consist of a majority driven by millennials, Gen Z and younger generations.
However, organic is facing challenges, the release said.
“The latest term adding confusion to the marketplace is “regenerative,” the OTA said. “While regenerative labels are not necessarily top of mind for consumers yet, the attributes they claim to represent include soil health, animal and human welfare, and biodiversity — attributes already embodied by the USDA Organic seal. As new certifications develop around regenerative agriculture, there is concern of consumer confusion, making it all the more important to elevate organic education.”