Falling Organic Produce Prices Helping Fuel New Sector Growth

The gap between organic and conventional produce prices is shrinking. How much? The Organic Produce Network says marketing research firm Circana reports the cost gap has shrunk from 71% in 2021 to 65% in 2022, 64% in 2023, and 61% in 2024.

A larger base of organic growers producing more selections is contributing to organic price declines. Certified organic cropland acres grew by 79% to 3.6 million acres from 2011 to 2021, per USDA data. Certified operations increased by more than 90% to 17,445 farms, while certified organic pastureland and rangeland fell 22% to 1.3 million acres.

Organic fruit and vegetable volume sales are up 6.3% for the 52 weeks ending January 26 versus the year-earlier period, compared to 3.2% for conventional produce, Circana data show. Conventional produce accounts for about 87% of total sector pound sales versus approximately 12% for organic.

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Strong employment, more consumers eating at home, and the “organic’s better for you” halo are propelling sales, says Chris DuBois, Circana Executive VP, Perimeter Practice Leader.

Falling organic prices are a significant sales driver. The average price of fresh organic produce declined 1.2% for the 52 weeks ending January 26 from the year earlier period to $2.83 a pound, Circana notes. The average price of conventional produce rose 0.4% to $1.76.

For more information, visit organicproducenetwork.com.