Health halo, millennial interest drive growth for organic produce

The organic produce category continues to see growth thanks to a devoted group of core shoppers, high interest among younger generations, and the perception that organic is healthier than conventional.

Organic fresh produce sales totaled $7.4 billion in 2020, up 15.2% from 2019, according to the new Power of Produce report from FMI. Fifty-nine percent of shoppers have bought organic produce in the past three months, and about one-third of that group says they will purchase more in the next year.

In 2019, nearly half of current organic buyers said they planned to purchase more in the coming year. The significant decrease could be related to economic pressure due to the pandemic, according to the report. Fourteen percent of current organic buyers said they expect to purchase less this year.

Among younger shoppers, however, purchase intent is high, with 42% of Gen Z shoppers and 37% of millennials planning to purchase more organic produce going forward.

“Given this high level of engagement among younger shoppers, continued growth is very likely, despite the economic pressure,” according to the report.

Organic continues to be most popular on the coasts and in more densely populated areas, but growth is also happening in other areas.

“Urban shoppers and those living in the Northeast and West currently have an above-average engagement with organic produce, but IRI growth data shows the South is rapidly catching up,” according to the report. “Shopper education and availability will likely drive accelerated growth in these areas. Additionally, specialty channels, including organic stores, farmers markets and online channels are attractive to organic shoppers. Calling out availability, together with a seamless omnichannel experience, may keep these shoppers’ dollars in traditional channels.”

Core organic shoppers – those who choose organic for as many produce items as possible – are also likely to be younger, either millennial or Gen Z; to consume fresh produce daily; to make multiple trips per week and focus on healthful eating; and to have kids, particularly elementary school age and younger, according to the report.

Forty-three percent of millennials want to see more organic options in the produce department, compared to 37% of Gen X shoppers, 33% of Gen Z shoppers and 27% of boomers.

FMI’s report found that the reasons people offered for purchasing organic are similar to those given in previous years; 57% of those who buy believe it is healthier, and 49% describe organic as free from substances they want to avoid, such as pesticides.

“Having less of an impact on the environment was mentioned by 37% of respondents, up from 27%,” according to the report. “This represents the biggest change across all reasons for purchasing organic produce listed.”