Onwards And Upwards For The US Organic Food Market

Nevin Barich

LOS ANGELES , May 29, 2018 (Off The Menu) – Here’s the latest news on organic food in the U.S.: It’s still popular.

According to the Organic Trade Association’s (OTA) 2018 Organic Industry Survey, the organic food market hit $45.2 billion in sales last year, breaking through to a new record for an increase of 6.4% from 2016.

The growth rate was below the 9% pace in 2016 and was impacted by markedly slow growth in the big organic dairy and egg category. However, it was well above that of the overall food market, which rose 1.1%. Organic continued to increase its penetration into the total food market and now accounts for 5.5% of the food sold in retail channels in the U.S., the survey added.

“Organic has arrived. And everyone is paying attention,” said Laura Batcha, CEO and Executive Director of the OTA. “Our survey shows there are now certified organic products in the marketplace representing all stages of the life cycle of a product or a company—from industry veterans to start-ups that are pioneering leading edge innovation and benefits and getting shelf space for the first time. Consumers love organic, and now we’re able to choose organic in practically every aisle in the store.”

The organic food market will see a steadier pace of growth as it matures, but it will continue to surpass the growth rate of the broader food market, Batcha added.

“Demand for organic is flourishing as consumers seek out nutritious and clean food that is good for their health and for the environment,” Batcha said. “That demand is driving innovation, and there are now so many organic options that we can all eat organic for breakfast, lunch, dinner, snacks and everything in between.”

With the first survey conducted in 1997 only registering US$3.4 billion in organic food sales, the industry has grown nearly 15-fold and has more than doubled in the last decade alone.

Other results from the survey:

---Fruits and vegetables continued to be the largest organic food category, recording $16.5 billion in sales in 2017 on 5.3% growth.

---Fresh produce accounted for 90% of organic fruit and vegetable sales.

---Sales of organic dried beans, along with dried fruits and vegetables, were a stand-out subsector in the category, increasing by 9% and reflecting growing demand for legumes and plant-based products.

Nevin Barich is the Food and Beverage Analyst for Industry Intelligence, which can help YOU better address your own industry challenges. We invite you to come take a look at our service. Call us today at 310-553-0008 and we’ll schedule you for a 15-minute demo.

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