United States Organic Food Market size was worth US$ 59.41 Billion in 2023. It is expected to grow at a CAGR of 10.35% from 2024 to 2032. The United States organic food market is estimated to reach US$ 144.15 Billion by 2032.
The method used to create some foods is referred to as "organic." Farmers and food producers that practice organic farming cultivate and produce food without the use of synthetic chemicals like artificial fertilizers and pesticides. They also avoid exposing food to radiation or using genetically modified (GM) ingredients. Manure and other natural fertilizers are often used in organic farming to enhance plant development. Antibiotics and hormones are not administered to animals bred organically. Meat, cereals, dairy products, fruits, and vegetables are the most often purchased organic foods.
In a PLoS One study, researchers examined age, gender, incomes, and education in 279 people who used organic products. The findings indicate that people who are 41 to 50 years old, as well as those with higher incomes and levels of education, are more likely to purchase organic goods. However, purchasing decisions for organic food are not significantly influenced by gender.
Over the past 20 years, organic food consumption has increased, according to the Organic Industry Survey. Actually, in 2020, American consumers spent $56 billion on organic fruit.
The U.S. economy's disposable income increased by 4.2% during the 12-month period ending in the final quarter of 2023, according to a report by the Bureau of Economic Analysis. From $57,386 at the end of 2022 to $61,084 at the end of 2023, per capita income increased during the course of the year.
In 2021 - 17,445 farms in the United States were managing 4.9 million certified organic acres, according to the USDA. In just two years, there was a 5% growth in the sale of organic crops, rising from $5.8 billion in 2019 to $6.1 billion in 2021.
Due to the large number of certified farms, there are more organic fruits, vegetables, meats, and other items available, which supports market expansion. In 2021- From a total of $2.5 billion in 2019, sales of items derived from cattle and poultry (such as milk and eggs) climbed by 16% to $2.9 billion. Furthermore, sales of cattle and poultry jumped by 29% to $2.2 billion in 2019 from $1.7 billion in total.
In October 2023 - With the introduction of its specialized branch, Dole Organics, and its new consumer brand, "DOLE® GO Organic!," the company hopes to take organics to the next level. Dole Organics is committed to revitalizing the organic fresh produce market through industry-wide cooperation, supply consolidation, maintaining product continuity and uniformity, and using best-in-class category management techniques in-store.
The market is also growing because there are so many organic alternatives available, which meet different customer needs. High-quality and innovative organic products attract new customers and support long-term organic food market growth.
In June 2023 - Regenerative Organic Certified Almond Milk Was Introduced by New Barn Organics.
The National Organic Program (NOP) certification process is made easier for producers and handlers by the Organic Certification Cost Share Program (OCCSP).
Deficiency bills guarantee financial stability for manufacturers who do not need loans, whereas marketing assistance loans support organic manufacturers in maintaining cash flow during market downturns.
Customers' confidence in the organic market is fostered by the USDA's certification procedures, which ensure the outstanding quality and integrity of organic products.
The primary extramural funding source for organic agriculture research, education, and extension in the United States at the moment is the National Institute of Food and Agriculture (NIFA) of the U.S. Department of Agriculture. Applications from organic farmers are accepted for many of NIFA's competitive programs. Two of the programs, nevertheless, are only applicable to organic farming. These are the Organic Transitions (ORG) program and the Organic Agriculture Research and Extension Initiative (OREI).
According to the USDA, conventional grocery retailers account for 55.6% of sales of organic food in 2021, surpassing natural food stores as the most popular outlet.
According to USDA NASS through CCOF, California produces forty percent of the organic commodities bought in the United States, together with 68% of the United States of America's organic vegetables.
The favorable weather of the country and various agricultural landscapes enable the manufacturing of diverse organic produce, including fruits, greens, nuts, and dairy products. A vital guide for natural farming practices and stringent organic certification requirements ensure quality and authenticity. The influential food tradition of California and fitness-conscious population also force non-stop innovation and growth in the organic food sector, making it a leading market nationwide.
In March 2024 - Alden's Organic recently launched a new line of frozen desserts made with organic Greek yogurt. The bars come in six different flavors. The company has stated that these bars have been certified by the USDA as organic and non-GMO. Each frozen treat contains up to 3 grams of protein, has a calorie range of 80 to 100 per serving, and includes live and active probiotic cultures.
In January 2024 - Danone decided to sell its premium organic dairy divisions, Horizon Organic and Wallaby, to investment business Platinum Equity in the United States.
In July 2022 - Danone launched a dairy and plant blend formula in response to the demand for baby vegetarian options.
In April 2022 - Nestle's baby food brand Gerber launched its first line of plant-based baby food, Plant-tastic. The collection includes organic plant-based toddler foods, such as pouches, snacks, and bowls, prepared with nutrient-dense beans, whole grains, and vegetables. The line features items like the Mediterranean Medley Harvest Bowl, Lil' Crunchies White Bean Hummus Toddler Snacks, and Banana Berry Veggie Smash Pouch.
In December 2021 - ChocXO partnered with Sprouts, a US-based supermarket chain, to increase its presence in the US market and enhance brand visibility and product accessibility.
2. Organic Meat, Poultry and Dairy
3. Organic Processed Food
4. Organic Bread and Bakery
5. Organic Beverages
6. Organic Cereal and Food Grains
7. Others
2. Specialty Stores
3. Convenient Stores
4. Online Retail Stores
5. Others
2. Texas
3. New York
4. Florida
5. Illinois
6. Pennsylvania
7. Ohio
8. Georgia
9. New Jersey
10. Washington
11. North Carolina
12. Massachusetts
13. Virginia
14. Michigan
15. Maryland
16. Colorado
17. Tennessee
18. Indiana
19. Arizona
20. Minnesota
21. Wisconsin
22. Missouri
23. Connecticut
24. South Carolina
25. Oregon
26. Louisiana
27. Alabama
28. Kentucky
29. Rest of United States
2. General Mills Inc.
3. Sprouts Farmers Market Inc.
4. The Hain Celestial Group Inc.
5. The Kroger Company
6. United Natural Foods Inc.
7. Dole Food Company Inc.
8. Newman's Own
The method used to create some foods is referred to as "organic." Farmers and food producers that practice organic farming cultivate and produce food without the use of synthetic chemicals like artificial fertilizers and pesticides. They also avoid exposing food to radiation or using genetically modified (GM) ingredients. Manure and other natural fertilizers are often used in organic farming to enhance plant development. Antibiotics and hormones are not administered to animals bred organically. Meat, cereals, dairy products, fruits, and vegetables are the most often purchased organic foods.
In a PLoS One study, researchers examined age, gender, incomes, and education in 279 people who used organic products. The findings indicate that people who are 41 to 50 years old, as well as those with higher incomes and levels of education, are more likely to purchase organic goods. However, purchasing decisions for organic food are not significantly influenced by gender.
Over the past 20 years, organic food consumption has increased, according to the Organic Industry Survey. Actually, in 2020, American consumers spent $56 billion on organic fruit.
United States Organic Food Market Trends
Rise in Certified Organic Farms
The United States organic food market is driven by growing disposable income and an increase in certified organic farms. Customers prioritize fitness and environmental concerns as their money rises. The demand for organic products is rising as a result. Concurrently, the growth in certified farms guarantees an additional supply of organic produce.The U.S. economy's disposable income increased by 4.2% during the 12-month period ending in the final quarter of 2023, according to a report by the Bureau of Economic Analysis. From $57,386 at the end of 2022 to $61,084 at the end of 2023, per capita income increased during the course of the year.
In 2021 - 17,445 farms in the United States were managing 4.9 million certified organic acres, according to the USDA. In just two years, there was a 5% growth in the sale of organic crops, rising from $5.8 billion in 2019 to $6.1 billion in 2021.
Due to the large number of certified farms, there are more organic fruits, vegetables, meats, and other items available, which supports market expansion. In 2021- From a total of $2.5 billion in 2019, sales of items derived from cattle and poultry (such as milk and eggs) climbed by 16% to $2.9 billion. Furthermore, sales of cattle and poultry jumped by 29% to $2.2 billion in 2019 from $1.7 billion in total.
Availability of new Organic Food Products
The range of organic food products available is driving the growth of the US organic food industry. Producers and merchants are increasing the variety of organic products they provide in response to consumer demand for healthier and ecologically friendly options.In October 2023 - With the introduction of its specialized branch, Dole Organics, and its new consumer brand, "DOLE® GO Organic!," the company hopes to take organics to the next level. Dole Organics is committed to revitalizing the organic fresh produce market through industry-wide cooperation, supply consolidation, maintaining product continuity and uniformity, and using best-in-class category management techniques in-store.
The market is also growing because there are so many organic alternatives available, which meet different customer needs. High-quality and innovative organic products attract new customers and support long-term organic food market growth.
In June 2023 - Regenerative Organic Certified Almond Milk Was Introduced by New Barn Organics.
Growing concern about Environmental Sustainability
The growing awareness of ethical farming methods and environmental sustainability is driving the growth of the United States organic food market. Customers choose sustainable techniques like crop rotation and natural pest management over ethical factors like animal welfare and support for locally owned, sustainable farming when selecting organic alternatives.The National Organic Program (NOP) certification process is made easier for producers and handlers by the Organic Certification Cost Share Program (OCCSP).
Deficiency bills guarantee financial stability for manufacturers who do not need loans, whereas marketing assistance loans support organic manufacturers in maintaining cash flow during market downturns.
Customers' confidence in the organic market is fostered by the USDA's certification procedures, which ensure the outstanding quality and integrity of organic products.
The primary extramural funding source for organic agriculture research, education, and extension in the United States at the moment is the National Institute of Food and Agriculture (NIFA) of the U.S. Department of Agriculture. Applications from organic farmers are accepted for many of NIFA's competitive programs. Two of the programs, nevertheless, are only applicable to organic farming. These are the Organic Transitions (ORG) program and the Organic Agriculture Research and Extension Initiative (OREI).
Advancements in distribution and Retail Channels
The US organic food market is expanding thanks in large part to the development of retail channels such as specialty shops, supermarkets, and internet platforms. Through enhanced accessibility and awareness, these channels serve a wider range of customers. Additionally, they offer comfort and variety, which encourages more customers to learn about and buy organic products. This more comprehensive attainment and comfort factor increases revenue, attracts customers, and builds brand recognition, all of which support the market's growth.According to the USDA, conventional grocery retailers account for 55.6% of sales of organic food in 2021, surpassing natural food stores as the most popular outlet.
California Organic Food Market
The organic food market in California is prospering as a pioneer in sustainable agriculture. This is driven by consumer demand for organic merchandise.According to USDA NASS through CCOF, California produces forty percent of the organic commodities bought in the United States, together with 68% of the United States of America's organic vegetables.
The favorable weather of the country and various agricultural landscapes enable the manufacturing of diverse organic produce, including fruits, greens, nuts, and dairy products. A vital guide for natural farming practices and stringent organic certification requirements ensure quality and authenticity. The influential food tradition of California and fitness-conscious population also force non-stop innovation and growth in the organic food sector, making it a leading market nationwide.
United States Organic Food Market Industry Analysis
Danone S.A., General Mills Inc., Sprouts Farmers Market Inc., The Hain Celestial Group Inc., The Kroger Company, United Natural Foods Inc., Dole Food Company Inc., and Newman's Own are the critical players in the United States organic food market.In March 2024 - Alden's Organic recently launched a new line of frozen desserts made with organic Greek yogurt. The bars come in six different flavors. The company has stated that these bars have been certified by the USDA as organic and non-GMO. Each frozen treat contains up to 3 grams of protein, has a calorie range of 80 to 100 per serving, and includes live and active probiotic cultures.
In January 2024 - Danone decided to sell its premium organic dairy divisions, Horizon Organic and Wallaby, to investment business Platinum Equity in the United States.
In July 2022 - Danone launched a dairy and plant blend formula in response to the demand for baby vegetarian options.
In April 2022 - Nestle's baby food brand Gerber launched its first line of plant-based baby food, Plant-tastic. The collection includes organic plant-based toddler foods, such as pouches, snacks, and bowls, prepared with nutrient-dense beans, whole grains, and vegetables. The line features items like the Mediterranean Medley Harvest Bowl, Lil' Crunchies White Bean Hummus Toddler Snacks, and Banana Berry Veggie Smash Pouch.
In December 2021 - ChocXO partnered with Sprouts, a US-based supermarket chain, to increase its presence in the US market and enhance brand visibility and product accessibility.
Product Type - Market breakup in 7 viewpoints:
1. Organic Fruits and Vegetables2. Organic Meat, Poultry and Dairy
3. Organic Processed Food
4. Organic Bread and Bakery
5. Organic Beverages
6. Organic Cereal and Food Grains
7. Others
Distribution Channel - Market breakup in 5 viewpoints:
1. Supermarkets/ Hypermarkets2. Specialty Stores
3. Convenient Stores
4. Online Retail Stores
5. Others
States - Market breakup of 29 States:
1. California2. Texas
3. New York
4. Florida
5. Illinois
6. Pennsylvania
7. Ohio
8. Georgia
9. New Jersey
10. Washington
11. North Carolina
12. Massachusetts
13. Virginia
14. Michigan
15. Maryland
16. Colorado
17. Tennessee
18. Indiana
19. Arizona
20. Minnesota
21. Wisconsin
22. Missouri
23. Connecticut
24. South Carolina
25. Oregon
26. Louisiana
27. Alabama
28. Kentucky
29. Rest of United States
All the Key players have been covered from 3 Viewpoints:
- Overview
- Recent Development
- Revenue Analysis
Company Analysis:
1. Danone S.A.2. General Mills Inc.
3. Sprouts Farmers Market Inc.
4. The Hain Celestial Group Inc.
5. The Kroger Company
6. United Natural Foods Inc.
7. Dole Food Company Inc.
8. Newman's Own
Table of Contents
1. Introduction2. Research Methodology3. Executive Summary5. United States Organic Food Market
4. Market Dynamics
6. Market Share
7. Product Type
8. Distribution Channel
9. States
10. Porter’s Five Analysis
11. SWOT Analysis
12. Key Players
List of Tables
List of Figures
Companies Mentioned
- Danone S.A.
- General Mills Inc.
- Sprouts Farmers Market Inc.
- The Hain Celestial Group Inc.
- The Kroger Company
- United Natural Foods Inc.
- Dole Food Company Inc.
- Newman's Own
Methodology
In this report, for analyzing the future trends for the studied market during the forecast period, the publisher has incorporated rigorous statistical and econometric methods, further scrutinized by secondary, primary sources and by in-house experts, supported through their extensive data intelligence repository. The market is studied holistically from both demand and supply-side perspectives. This is carried out to analyze both end-user and producer behavior patterns, in the review period, which affects price, demand and consumption trends. As the study demands to analyze the long-term nature of the market, the identification of factors influencing the market is based on the fundamentality of the study market.
Through secondary and primary researches, which largely include interviews with industry participants, reliable statistics, and regional intelligence, are identified and are transformed to quantitative data through data extraction, and further applied for inferential purposes. The publisher's in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. These analytical tools and models sanitize the data & statistics and enhance the accuracy of their recommendations and advice.
Primary Research
The primary purpose of this phase is to extract qualitative information regarding the market from the key industry leaders. The primary research efforts include reaching out to participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions. The publisher also established professional corporate relations with various companies that allow us greater flexibility for reaching out to industry participants and commentators for interviews and discussions, fulfilling the following functions:
- Validates and improves the data quality and strengthens research proceeds
- Further develop the analyst team’s market understanding and expertise
- Supplies authentic information about market size, share, growth, and forecast
The researcher's primary research interview and discussion panels are typically composed of the most experienced industry members. These participants include, however, are not limited to:
- Chief executives and VPs of leading corporations specific to the industry
- Product and sales managers or country heads; channel partners and top level distributors; banking, investment, and valuation experts
- Key opinion leaders (KOLs)
Secondary Research
The publisher refers to a broad array of industry sources for their secondary research, which typically includes, however, is not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Patent and regulatory databases for understanding of technical & legal developments
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic new articles, webcasts, and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecasts
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 220 |
| Published | May 2024 |
| Forecast Period | 2023 - 2032 |
| Estimated Market Value ( USD | $ 59.41 Billion |
| Forecasted Market Value ( USD | $ 144.15 Billion |
| Compound Annual Growth Rate | 10.3% |
| Regions Covered | United States |
| No. of Companies Mentioned | 8 |
