Produce leads record-breaking organic food sales, report says

In 2022, organic food sales in the U.S. topped $60 billion for the first time, hitting another high-level mark for the growing organic sector.

Total organic sales — including organic nonfood products — reached a record $67.6 billion, according to a recently released 2023 Organic Industry Survey by the Organic Trade Association. 

What’s more, organic produce maintains the top spot in sales, leading all organic categories, according to the survey. Often the entry point for new organic consumers, organic produce sales totaled $22 billion and accounted for 15% of all fruit and vegetable sales in the U.S., according to a news release.

The organic market has continued its steady growth despite recent food sector headwinds that include inflation, supply chain disruptions and a labor shortage. In 2022, inflation pressures caused spiking costs across the organic supply chain and boosted prices in the grocery aisles. As a result, the organic sector reflected the overall food sector, with the value of organic sales rising even as the growth in the volume of sales for some categories slipped, according to a news release.    

Despite challenges, the sector’s 4% growth in sales value was nearly twice the pace of growth in 2021. Organic food sales totaled $61.7 billion, and the value of organic nonfood sales hit nearly $6 billion, according to the Organic Industry Survey.

“Organic has proven it can withstand short-term economic storms. Despite the fluctuation of any given moment, Americans are still investing in their personal health, and, with increasing interest, in the environment, and organic is the answer,” Organic Trade Association CEO Tom Chapman said in the release. “Organic’s fundamental values remain strong, and consumers have demonstrated they will come back time and again because the organic system is verified, and better for people, the planet and the economy.” 

In total, organic food products now account for 6% of total food sales in the U.S., the Organic Industry Survey said. 

The latest milestones represent a steady pace of growth since the inception of certified-organic goods in the U.S. In the last 10 years, organic sales have more than doubled as Americans are eating and using more organic products than ever before. Total organic sales broke through the $50 billion mark for the first time in 2018, and organic food sales hit $50 billion for the first time in 2019.  

“Organic is at that right intersection of environmental and personal health,” OTA’s Chapman said in the release. “Organic brings together the interest in human health and a healthy environment, and that offers organic a positive pathway forward and will help organic businesses withstand challenges in the future.” 

Organic beverages, dairy and eggs trail produce in bestselling categories

After produce, organic beverages were the second-bestselling organic category, reporting $9 billion in sales in 2022, up 4%, according to the survey.

“Organic beverages continue to climb. They’re an area where shoppers are willing to experiment and are less price sensitive,” Angela Jagiello, director of education and insights for OTA and coordinator of the annual survey, said in the release. “Soft and enhanced drinks had a great year, with the non-alcoholic trend being a big contributing factor. Many younger shoppers are reducing or eliminating alcohol, and these organic beverages are a celebratory and sophisticated alternative.” 

The third-highest-selling organic category, according to the Organic Industry Survey, was dairy and eggs at $7.9 billion, up over 7% from the previous year, with both categories constituting close to 8% of the total dairy and egg market.

Pace of organic sector growth in 2022 was steady but slowing

While the growth pace of organic sales has predictably slowed from the barnburner rates during the pandemic, a wide and diverse smattering of organic products showed outstanding growth as consumers further bring organic into their lives, according to the survey. 

Organic product growth categories include:

• Organic baby food and formula sales — up almost 13% to $1.4 billion.

• Organic rice, grains and potato products — up over 10% to $387 million.

• Organic dip sales — up a big 18% to $194 million.

• Sales of organic pork — up more than 10% to $63 million.

In the organic nonfood category, sales of organic linens and clothing accounted for some 40% of sales, recording $2.4 billion in sales for a gain of 2.5%, according to the OTA’s Organic Industry Survey. Organic supplement sales held steady at around $2 billion, while organic personal care products rose over 5% to $1.2 billion. 

Producing the 2023 Organic Industry Study

This 2023 survey was conducted from Jan. 13 through April 4 and was produced on behalf of the OTA by Nutrition Business Journal. Numerous data sources were compiled to create as complete a picture as possible of the organic industry, which consists largely of private companies, according to the release. Inputs included information from POS data, expert interviews, annual report data and in-depth direct survey data.