.jpg)
4 hours ago
1
Article content
Organic Trade Association reports sales of organic products at $71.6 billion with growth rate more than doubling overall marketplace
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
Article content
WASHINGTON, D.C., April 23, 2025 (GLOBE NEWSWIRE) — U.S. sales of certified organic products accelerated in 2024 with an annual growth rate of 5.2%, more than double that of the overall marketplace which grew at 2.5% in the same period. Dollar sales for organic also reached a new high of $71.6 billon in 2024, according to the 2025 Organic Market Report released today by the Organic Trade Association (OTA).
Article content
Article content
After two years of managing high inflationary pressure and significant supply chain recalibration coming out of COVID, the organic marketplace hit a new growth stride in 2024 with organic food sales totaling $65.4 billion and sales of organic non-food products totaling $6.2 billion.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
“When we look at the last two years, this is very good news that we are on the right trajectory with organic growing more than twice as fast as the total market,” says Tom Chapman, Co-CEO Organic Trade Association. “While we have significant opportunities to drive organic’s share of the total market, we are seeing increased consumer adoption of organic and a positive return to industry growth which are very good signs.”
Article content
A key trend influencing the growth of organic sales continues to be an increased desire for cleaner ingredients as consumers prioritize health and wellness for themselves and their families. This encompasses looking for “free from” foods and products, such as “free-from” chemicals, toxins and pesticides, hormones and antibiotics, dyes and unnecessary additives, as well as seeking out the USDA Organic seal.
Article content
Article content
In 2024, shoppers found that the gap between conventional and organic prices across categories including grocery and dairy had shrunk, making them more open to considering and purchasing organic. This includes an increase in organic purchases at mainstream grocery retailers where shoppers tend to be more price sensitive.
Article content
Top organic sellers by food category:
Article content
- At $21.5 billion, organic produce held its top spot as the standout category, continuing to be the primary entry point for consumers into the organic market. In 2024, the category accounted for 30.1% of total organic sales with a growth rate of 5.2% for the year. Berries remain the star of the organic produce category, with sales rising another 10.3% in 2024. Bananas also had a particularly strong year, with sales climbing 15.5%. New apple varieties, and tropical fruits, such as mangoes, kiwi, and pineapples, continued to gain momentum.
Not all produce categories performed as well, however. Organic packaged salad sales declined 4.5%, and lettuce and other greens also showed little momentum with a modest sales increase of only 0.8%.
- The second biggest-selling organic food category was the grocery category, posting sales of $15 billion in 2024, achieving 4% overall growth. Bakery and fresh breads, the largest category, grew by 2.8%, driven by interest in artisanal products like sourdough. Dry breakfast goods, the third-largest category, rose by 8.1% as consumers sought better-for-you options that align with family dietary goals. Baby food and formula is the second-largest organic grocery segment at $1.6 billion and experienced a 3.8% sales increase in 2024 but was limited by supply and capacity constraints.
Consumers continued to show interest in cooking restaurant-quality meals at home. This trend, coupled with the perception of food as medicine, has driven demand for high-quality organic grocery ingredients. Younger consumers, particularly Millennials and Gen Z, are also helping shape grocery sales trends by balancing health-conscious choices with quality and indulgence.
- As the third largest segment, beverages are often cited as the organic category with the most innovation, and 2024 was no exception. Sales in the organic beverage market grew 5.2% to $9.5 billion, with new formulations following consumer trends in wellness and rising interest in low-sugar formulations with functional and sustainable ingredients. With ingredients like ashwagandha and mushrooms, low-sugar drinks, kombuchas, sports drinks, non-alcoholic offerings, and protein-enriched smoothies all on the shelf, this category is expected to cross the $10 billion mark in 2025.
Beverage segments with the highest growth encompassed dairy alternatives (13.5%), tea (10.5%), and spirits, liquor & cocktails (10%). Although dairy alternatives recorded the highest growth rate (13.5%) across beverage categories, with just $850 million in sales remains far behind organic milk’s $3.9 billion watermark.
- In the fourth category, organic dairy and egg sales rose by an impressive 7.7% to $8.5 billion in 2024. Organic yogurt, the second largest category in this segment, grew 10.5% – the second highest growth rate in the category in more than 15 years – while organic egg sales rose 16.1%. This growth is in part due to the Avian Influenza that has hit egg producers across the country, causing all egg prices to surge while leaving bare grocery shelves.
The growth in organic dairy and eggs reflects a strong consumer desire for clean ingredients and nutrient-dense products. Organic dairy and eggs align with the health-conscious trend, providing high-quality, clean protein options that resonate with shoppers, even when priced at a premium.
English (US)