Another New Record in Sales for Organic Food Industry

Insufferable inflation aside, a new industry survey from the Organic Trade Association (OTA) says consumers remained steadfast in seeking out products with the USDA Organic label. The organic industry continues to grow. Indeed. Organic food sales in 2023 hit $63.8 billion. And sales of organic non-food products reached $5.9 billion. Both tallies represent new high-water marks for organic sales.

Survey data indicate the increase in organic marketplace sales was influenced more by pricing than unit sales. But volume did more than hold its own. 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. This means the price gap between conventional and organic is closing. This should help fuel growth for organic products in 2024.

Produce held its spot as the largest organic category in 2023, continuing to be the primary entry point for consumers into the organic market. In 2023, the category grew by 2.6% to $20.5 billion. Organic produce now accounts for more than 15% of total U.S. fruit and vegetable sales.

Top sellers in the organic produce section were avocados, berries, apples, carrots, and packaged salads. Organic bananas also saw stronger growth in 2023 than non-organic bananas.

“It is encouraging to see that organic is growing at basically the same rate as the total market,” says Tom Chapman, Co-CEO of OTA. “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.”

The full report can be accessed through purchase at ota.com.