Organic Food in the USA, Near a Milestone: 5 Percent of the Total Food Market

Sales of organic food and non-food products in the United States broke through another record in 2014, totaling USD 39.1 billion, up 11.3 per cent from the previous year, according to the latest survey on the organic industry from the Organic Trade Association (OTA).

Despite the industry struggling with tight supplies of organic ingredients, organic food sales in 2014, at USD 35.9 billion, posted an 11 per cent rise, while organic non-food sales, at USD 3.2 billion, jumped almost 14 per cent for the biggest annual increase in six years.

The majority of American households in all regions of the country now make organic a part of their supermarket and retail purchases – from 68 to almost 80 per cent of households in southern states, to nearly 90 per cent on the West Coast and in New England, according to new market research released at OTA’s Annual Policy Conference.

“On the heels of organic sales now nearing a milestone 5 per cent share of the total food market, organic stakeholders have gathered in Washington to educate lawmakers and policymakers. Our latest industry data show robust demand and great opportunity for the organic sector,” said Laura Batcha, CEO and Executive Director of OTA. “OTA’s consumer survey has already found that organic doesn’t have any demographic boundaries; this additional new data prove it doesn’t have regional or partisan boundaries.”

Over 200 companies responded to OTA’s Organic Industry Survey, conducted this year from February 10 through April 3. The full survey will be available in mid-May through OTA.

Also released at the conference were the results of data collected from over 100,000 households across the country through IRI Shopper Network of bar code items purchased at supermarkets and other retail outlets. Compiled by SPINS, a market research firm for the organic and natural industry, the findings show booming growth trends for organic, and an increasing penetration by organic into conventional channels.

The U.S. organic sector has expanded significantly since OTA first began tracking the industry’s performance in 1997. In 1997, organic food sales totaled around USD 3.4 billion, and accounted for under 1 per cent of total food sales. In 2014, organic food claimed almost 5 per cent of the total food sales in the U.S., and has consistently far outshone the 3 per cent growth pace for the total food industry.

Organic fruits and vegetables continued to be the biggest-selling organic category in 2014 with USD 13 billion in sales, up 12 per cent from the previous year, and making up more than 36 per cent of all organic food sales. Of all the produce now sold in the United States, 12 per cent of it is organic, a market share that has more than doubled in the past ten years when organic produce sales accounted for only 5 per cent of the fruit and vegetable market.

The organic dairy sector posted an almost 11 per cent jump in sales in 2014 to USD 5.46 billion, the biggest per centage increase for that category in six years.

Sales of organic non-food products – accounting for 8 per cent of the total organic market – posted the biggest per centage gain in six years.