Organic produce continues to gain steady momentum, and that’s good news for suppliers and retailers alike.
Maggie McNeil, director of media relations for the Organic Trade Association, said the group’s 2017 Organic Industry Survey showed retail sales of organic fruits and vegetables in 2016 in the U.S. were $15.6 billion, up 8.4% from the previous year.
“That growth rate is almost triple the growth pace of total fruit and veggie sales,” she said. “Organic produce sales account for almost 40% of all organic food sales and remain the biggest organic food category.”
However, the survey numbers from the organic association differ widely from the United Fresh Produce Association’s FreshFacts on Retail report, which set organic produce sales at retail (not including processing or foodservice outlet sales) at $4.46 billion in 2016, up 13.2% from 2015. What’s more interesting, the United Fresh numbers — from Nielsen Fresh — said organic sales in 2016 accounted for 9% of all fresh produce sales.
The 9% organic market share number from FreshFacts is below the OTA’s 15% estimate for organic’s share of the produce market.
Regardless of which numbers are used, organic produce sales growth sees no end in sight.
“Berries own the lion’s share of organic sales, and the growth rate remains tremendous at 29%,” said Matt Lally, associate client director of fresh growth and strategy for Nielsen Fresh.
Bil Goldfield, communications manager, Dole Fresh Fruit/Dole Fresh Vegetables, Westlake Village, Calif., said according to the Organic Consumers Association, 63% of Americans buy organic foods and beverages, and 40% say that organic foods will play a larger role in their diet within the next year.
Organics Unlimited Inc., San Diego, offers certified organic cavendish bananas, coconuts and plantains, all grown sustainably in Mexico and Ecuador.
“A big trend that has been on the rise in the past couple of years is how consumers want to know where their food comes from, how it is sourced and grown and what its impact is on the environment,” said Mayra Velazquez de Leon, president and CEO of Organics Unlimited.
Michael Castagnetto, vice president of sourcing for Eden Prairie, Minn.-based Robinson Fresh, said Robinson Fresh specializes in organic apples, asparagus, dry vegetables, melons, onions, oranges, pears, potatoes, shallots, squash and sweet potatoes, among others.
“The biggest trend lately is that organic seems to be moving mainstream,” he said. “In the past, there was a certain stereotype associated with those who bought organic produce. However, we recently completed our own proprietary research and discovered that especially among younger generations or any age that has children under the age of 18, purchasing organic produce is becoming a regular occurrence.”
