All Organic Grocery Store Near Me – Organic food sales rose 12.8 percent to $56.5 billion in 2020, significantly higher than last year’s 4.6 percent growth.
According to the Organic Trade Association (OTA), U.S. organic sales grew 12.4% in 2020, surpassing $60 billion for the first time, more than double last year’s growth.
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Organic food and non-food sales totaled $61.9 billion last year and grew 5% to $55.1 billion in 2019, OTA said Tuesday in its 2021 Organic Industry Survey. Food grew 12.8% to $56.5 billion in 2020, up from a significantly higher 4.6% increase to $50.1 billion last year.
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Meanwhile, non-organic sales, which made up 8.8% of organic sales, were $5.4 billion in 2020, up 8.5% from $5 billion in 2019. While the segment grew 9.2%.
According to OTA data, the last time the US organics market saw double-digit sales growth was in 2015, when sales rose 11.3% year-over-year, making it the fourth consecutive year of double-digit growth.
“Organic purchases have increased as consumers choose high-quality organic products to add to their families,” said Laura Batcha, executive director and executive director of the Washington, D.C.-based Organic Trade Association.
“The pandemic has caused sudden changes in our whole lives. We used to eat at home with our families and often cook three meals a day,” he explained. “Good, healthy food has never been more important, and consumers are looking for the [USDA] Organic label more and more.”
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About 6% of food sold in the U.S. last year was certified organic, OTA said. Sales of organic fruits and vegetables will grow 11% to $18.2 million in 2020, according to research conducted for OTA by the Journal of Fresh Foods.
Sales of frozen and canned fruits and vegetables increased by more than 28 percent. Total sales of organic fruits and vegetables, including frozen, canned and dried products, exceeded $20.4 billion in 2020. OTA said that more than 15 percent of all fruits and vegetables sold in the United States today are organic.
As with other segments of the grocery trade, growth in organic food sales following the outbreak of COVID-19 in early 2020 was fueled by consumer demand. This boosted bakeries across the country, increasing sales of organic flour and bakery products by 30%.
Similarly, sales of meal support products have increased as more consumers return to cooking at home. Higher sales of organic sauces and condiments helped boost the $2.4 billion condiments category by 31 percent. Sales of organic fragrances grew 51%, more than triple the 15% growth rate in 2019.
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Growth was also strong in organic meat, poultry and seafood, the smallest of the organic categories, with sales up nearly 25% to $1.7 billion.
Angela Jagiello, OTA’s Director of Education and Insights, said the organic arena is not immune to supply shortages caused by the pandemic, which has affected food and other industries.
“The only thing limiting the growth of the organic food industry is supply,” Jagiello said. This includes not only products and their ingredients, but also packaging, as bottle caps, bags, corrugated cardboard, nutritional supplement bottles and other materials are in short supply, making it difficult for manufacturers to meet consumer demand. Growth in all organic categories has been limited by supply, with manufacturers, distributors, retailers and brands wondering where the numbers will rise as supply can be met. “
Looking ahead, OTA said the organic food market is unlikely to sustain last year’s strong growth, but sales will be high in 2021 due to continued home cooking following the pandemic.
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“We’ve seen a lot of changes during the pandemic, and some of them are here to stay,” Batcha said. “What has come out of COVID is a renewed understanding of the importance of protecting our health and the importance of nutritious food. For more consumers, that means organic. We will still eat out, but many of us will eat and cook more at home. We are everywhere, in stores and on plates. We’ll see it more organically,” he said. The U.S. organic market topped $50 billion for the first time in 2018, according to the Organic Trade Association.
Organic sales, including food and non-food products, rose 6.3% last year to $52.5 billion, the association reported in its 2019 Organic Industry Survey. Record levels were reached for both divisions: sales rose 5.9% to $47.9 billion for organic food and 10.6. % to $4.6 billion for non-food.
Organic sales growth outpaced overall market sales growth, with food sales up 2.3% and non-food sales up 3.7%, the report said.
According to the Organic Trade Association, this product segment is no longer a good market, with only 5.7% of food sold in the US now being organic. The group said organic food and non-food products can all be found in supermarkets, mass retailers, warehouse clubs, convenience stores and online retailers.
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“Organic is now considered mainstream,” said Laura Batcha, executive director and CEO of the Organic Trade Association.
Produce remains the largest organic category. In 2018, fruits and vegetables accounted for 36.3% of total organic food sales. Organic fruits and vegetables accounted for 14.6% of produce sold in the U.S. last year, and the segment has doubled its market share over the past 10 years, the Organic Trade Association said.
Sales of organic fruits and vegetables totaled $17.4 billion in 2018, up 5.6% from last year, according to the study. However, it outpaced growth in the fruit and vegetable market, including conventional and organic produce, with sales up 1.7% last year.
Popular organic fresh produce in 2018 included carrots, collard greens, apples and bananas, while organic fruits, avocados, Brussels sprouts, cabbage and tropical fruits such as mango and papaya also increased production growth. Organic frozen, canned and dried fruit and vegetable products also made gains, according to the study.
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According to the Organic Trade Association, the second largest organic category, milk and eggs, saw slow growth in 2018, reflecting the general trend of the U.S. dairy industry. Sales of organic dairy products and eggs rose 0.8% last year to $6.5 billion. Organic egg sales were $858 million, up 9.3% from last year, but less than the double-digit growth seen in the first part of the decade.
Consumers are turning to organic dairy for products free of antibiotics, synthetic hormones and chemicals, according to research. But in the dairy segment, consumers who once preferred low- and low-fat milk are embracing products high in healthy fats and proteins, and many millennials are switching from dairy products to plant-based foods and beverages, according to the Organic Trade Association. He said he responded with new flavors and herbal products.
“Attitudes toward organic are the status quo. 2018 is a critical shift in the mindset of those working in the organic industry, and activism to move the needle on the role organic products play in sustainability and addressing environmental initiatives,” said Batcha. “Activism is a natural reaction of an industry that is so close to the consumer. When we’re in an environment where government is not doing enough, the industry wants to be proactive and meet the consumer.”
This trend is particularly evident in the non-organic food market. The 10.6% growth in non-organic food was higher than the 7.4% achieved by the segment in 2017 and the 3.6% growth rate recorded by the non-food sector (including conventional and organic products) in 2018. .
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The biggest growth came from fiber, with sales up 12.5% to $1.8 billion in 2018, according to the report. The non-food organic category accounts for 40% of the fiber market segment.
What’s driving the growth of non-organic organic products, “whether it’s in napkins, pet food, skin lotions or oral supplements,” is the same factor driving consumers to eat organic food. he said. These include clean labels, reduced chemicals, and greater transparency and sustainability in the supply chain, the latter of which is supported by millennials. The association added that the USDA Organic seal has new appeal as consumers see the certification as non-GMO and free of toxic pesticides or chemicals, colors and preservatives.
“Organic is in a different and challenging environment. The government is slowing progress on organic standards, but the positive news is that the industry is finding ways to innovate and get closer to the consumer without giving up on the organic agenda. The industry is innovative, but federally mandated organic production,” he said. “So whether it’s grass-fed, regenerative or certified under the Global Organic Textile Standard, everything has to be organic. The industry is committed to
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