Capitalizing the Organic Food Market

The potential for organic sales in almost every small business category is excellent in the current market.

The U.S. organic industry has grown healthy over the past few years. An industry survey indicates that organic products outpace those made with conventional methods. As a result of consumer choice, the organic food sector will exceed USD 57.5 billion in total value between 2020 and 2021. An Organic Trade Association (OTA) survey estimates that organic sales will exceed USD 63 billion between 2020 and 2021.

This growth was attributable mainly to organic food and beverages, which accounted for more than 90 percent of these sales. Organic food sales grew 2 percent (USD 1.4 billion).

Growth of organic food sales: By 2027, the organic food market is expected to grow at an annual rate of 8.7 percent, according to BlueWeave Consulting research. A 3.8 percent annual growth rate is projected for the overall food industry through 2027, while a 3.8 percent growth rate is predicted for the organic food sector. The organic food sector continues to grow rapidly, with sales outpacing conventional foods in some cases. A report from the Organic Produce Network indicates that organic produce sales increased by 5.5 percent in 2021 and that the number of sales in this category increased by more than 2 percent. However, the sales volume for conventional produce decreased by 2.1 percent during this period, while the sales value increased by only 1.9 percent. A 51 percent increase in organic flour sales from 2019 to 2020, compared to a 33 percent increase in overall flour sales, has exceeded conventional grain sales. It is becoming increasingly important for crop farmers to follow organic farming standards to tap into these increasing profits.

Sales trends among organic food categories: OTA reported that in 2021, organic fruit and vegetable sales would surpass USD 21 billion. The amount is 4.5 percent higher than that of 2020. Organic dairy and egg sales increased by nearly 11 percent. There were nearly USD 2 billion organic meat sales in 2021, led by poultry with more than USD 1 billion. Organic beverage sales increased by 8 percent in 2021. Increasing numbers of people are now working from home, which led to organic coffee sales reaching more than USD 2 billion in 2021. As stay-at-home restrictions were lifted, Americans became less reliant on baking for entertainment. Organic bread and grain sales reached USD 6 billion in 2021, as many customers began to consume more fresh foods instead of pantry items. As a result, preprepared and packaged organic food sales declined by about 5 percent.