Organic produce sales and volume edge up again in Q3, says report
For the second quarter in a row, organic fresh produce grew slightly in year-over-year sales and volume in the third quarter of 2023, according to an Organic Produce Performance Report published by the Organic Produce Network and Category Partners.
Overall, organic fresh produce dollar sales and volume increased by 2% and 1.9%, respectively, for the third quarter of 2023 compared with the same period last year, with sales for the quarter topping $2.44 billion and volume movement at 733 million pounds. Conventional produce dollar sales and volume showed similar year-over-year gains, with sales up 2.4% and a volume increase of 1.8%, according to a news release.
"The growth in organic produce volume slightly outpacing conventional produce reflects the continued consumer interest in healthier and sustainable food choices, reaffirming the vitality of the organic industry in today's market," Tom Barnes, CEO of Category Partners, said in the release. "It's also heartening to see organics making a comeback after grappling with inflationary pressures in recent years."
In a period of continued inflationary pressure, price increases in each segment were considerably less compared with the past two years. Conventional produce average price per pound grew by 0.6% compared with the third quarter of 2022, while organic pricing per pound rose by a mere 0.1%. Overall, the average price per pound for the total produce department increased by only 1 cent compared to the same period last year, according to the release.
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In the third quarter of this year, 15 of the top 20 organic fresh produce categories posted increases in dollar sales compared with the same period last year. The organic berry category led overall dollar sales with $461 million for the quarter, representing a year-over-year increase of 6.9%, according to the release.
Organic broccoli saw the largest sales jump, up 14% from the same period last year. The second-largest dollar category — packaged salads — experienced a decline of 5.4% in sales in the third quarter of this year compared with the same period in 2022, with total sales of $362 million.
The report outlined volume gains for the quarter were seen in 12 of the top 20 categories, including double-digit growth for broccoli and watermelon. Organic celery posted the largest decline in volume, followed by peaches and packaged salads. Bananas continued to remain the largest volume category.
Geographically, every region saw year-over-year increases in dollar sales, with the South showing the largest gain at 4%. The West was the only region to see a decrease in volume and an increase in price per pound, said the release.
The Q3 2023 Organic Produce Performance Report covers total food sales in the U.S., including all outlets for 13 weeks of 2023 compared to the same period last year. The full report is available on the Organic Produce Network website.
