United States Organic Foods Market, By Region, Competition, Forecast & Opportunities, 2020-2030F

The United States Organic Foods Market was valued at USD 84.56 Billion in 2024, and is expected to reach USD 100.89 Billion by 2030, rising at a CAGR of 7.23%. The United States Organic Foods market is witnessing robust growth, owing to the increasing health consciousness and a growing awareness of the environmental impact of conventional farming practices.

Consumers are becoming more aware of the benefits of organic foods, including fewer chemicals, pesticides, and additives, leading to greater demand for cleaner, healthier options. Also, the rise in lifestyle-related health issues, such as obesity and allergies, has motivated consumers to prioritize organic, nutrient-dense food. The shift towards sustainable living, along with concerns about climate change and food traceability, also contributes to the demand for organic products. Also, rising disposable incomes, especially among millennials, and expanded availability of organic products in mainstream supermarkets and online platforms are fueling market growth.

Key Market Drivers

Growing Innovation by Key Players

Growing innovation by key players is a major driver in the United States organic foods market. As demand for organic products continues to rise, companies are focusing on developing new and innovative products to meet evolving consumer preferences. As a part of this, as of October 2022, Roquette, a global leader in plant-based products and a pioneer in plant proteins, launched two new organic pea ingredients: organic pea starch and organic pea protein. These ingredients are produced at its facilities in Portage la Prairie (MB, Canada), and they are supported by peas sourced from a Canadian organic pea producer network.

Roquette's new solutions enable its customers to select the food they wish to sell to consumers while maintaining quality, reliability, and full traceability back to the farm. Roquette collaborates with farmers to produce high-quality organic ingredients, delivering sustainable and reliable proteins and starches to clients via a one-of-a-kind supply chain. Organic food manufacturers are expanding their product portfolios to include a wider range of options, such as plant-based, gluten-free, and non-GMO organic foods, catering to a broader audience with specific dietary needs. Also, advancements in organic farming techniques, such as regenerative agriculture and vertical farming, are enabling companies to increase yields while maintaining sustainability.

Key players in the market are also adopting cutting-edge packaging solutions to reduce waste and enhance convenience, offering eco-friendly and recyclable packaging to align with sustainability trends. The use of technology, such as blockchain for traceability and data analytics for product development, is also playing a role in meeting consumer demands for transparency and quality assurance.

Also, many companies are investing in research and development to improve the taste, texture, and nutritional content of organic foods, making them more competitive with conventional products. This focus on innovation is not only expanding the variety of organic foods available but is also improving accessibility and affordability, further driving growth in the U.S. organic foods market.

Increased Disposable Income

Increased disposable income is a significant driver of the U.S. organic foods market. As a part of this, according to the United States Department of Agriculture, as of 2023, US consumers spent an average of 11.2 percent of their disposable personal income on food.As American consumers' purchasing power grows, they are increasingly able to afford premium products like organic foods, which often come with a higher price tag compared to conventional options. This trend is especially noticeable among higher-income households, where organic food purchases are viewed as a lifestyle choice rather than a necessity. Also, rising disposable incomes allow consumers to prioritize health, sustainability, and quality, making organic food choices more appealing.

The growing middle class, particularly millennials and Generation Z, is contributing to this trend, with many consumers willing to invest in organic products due to concerns over health, environmental impact, and the desire for transparency in food sourcing. As these demographics have more financial flexibility, they are more likely to incorporate organic foods into their daily diets, influencing the overall market demand.

Also, the expansion of organic product availability in both brick-and-mortar stores and online retail platforms has made these products more accessible to a wider audience. Retailers and manufacturers are responding to this demand by offering organic food options across various price points, further supporting the growth of the market. As disposable income continues to rise, the U.S. organic foods market is expected to see sustained growth in consumer spending on organic products.

Large Pool of People Suffering from Chronic Diseases

The large pool of people suffering from chronic diseases is a significant driver of the U.S. organic foods market. As a part of this, according to the National Institutes of Health, the number of individuals in the United States aged 50 and older will rise by 61.11%, from 137.25 million in 2020 to 221.13 million in 2050. The number of people aged 50 and older with at least one chronic condition is expected to rise by 99.5%, from 71.522 million in 2020 to 142.66 million in 2050.With rising rates of conditions such as obesity, diabetes, heart disease, and hypertension, many consumers are turning to organic foods as part of a broader shift toward healthier eating habits. Organic products, often perceived as being free from harmful pesticides, artificial additives, and preservatives, are viewed as a healthier alternative to conventional foods, which may contain chemicals that contribute to health issues.

The growing awareness of the link between diet and chronic diseases has led consumers to seek out organic foods that are rich in nutrients, free from synthetic chemicals, and better for long-term health. For instance, organic fruits, vegetables, and whole grains are believed to provide higher nutritional value and fewer health risks compared to conventionally grown counterparts. In response, the organic food industry is expanding its offerings to cater to those with specific dietary restrictions or health concerns, such as gluten-free, non-GMO, and low-sodium organic products. As more people become proactive about managing their health through diet, the demand for organic foods is expected to continue growing. This shift is not only benefiting individual health but also driving the overall growth of the organic foods market in the U.S.

Key Market Challenges

Supply Chain Complexities

Supply chain complexities represent a significant challenge for the U.S. organic foods market. Organic food production and distribution involve strict regulations and certification processes, which can make sourcing and transporting organic products more complicated than conventional foods. The need for organic certification, which ensures that products meet specific standards, adds additional layers of complexity to the supply chain.

This can lead to delays, higher costs, and challenges in maintaining consistent product availability, especially as demand for organic foods continues to grow. Also, organic farming typically involves more labour-intensive and smaller-scale operations compared to conventional agriculture, which can limit production capacity and affect supply chain efficiency. Disruptions in the supply chain, such as weather conditions, transportation delays, or shortages of organic raw materials, can exacerbate these challenges, leading to product shortages or price increases.

Also, organic food suppliers often rely on specific, smaller-scale suppliers, making them more vulnerable to fluctuations in supply. The organic industry’s reliance on both domestic and international sources further complicates logistics, with global supply chain disruptions - such as shipping delays and trade barriers - having a direct impact on the availability of organic products in the U.S.As the demand for organic products grows, overcoming these supply chain challenges will be crucial for ensuring consistent product availability, competitive pricing, and the continued growth of the market.

Stringent Government Regulation

Stringent government regulations present a significant challenge for the U.S. organic foods market. As a part of this, as of January 2023, The US Department of Agriculture is working to increase transparency and standards for items that are now called organic. For the first time in over 30 years, the USDA is tightening regulations on organic products, including production, handling, and sales, and adding "layers of protection" around the agency's organic symbol. The rule standardizes training and operational requirements for organic enterprises and people, which will result in more on-site inspections. The rule also mandates certification for organic imports, and enterprises must give certification demonstrating that critical elements of their supply chain are organic.

The certification process can be time-consuming, costly, and complex, requiring regular inspections, documentation, and adherence to specific practices. For smaller-scale farmers or new entrants into the organic space, these requirements can be a financial and logistical burden, limiting their ability to compete. In addition, compliance with USDA standards for organic labeling and claims requires continuous monitoring of the production process, which can increase operational costs.

Also, the constant evolution of organic regulations - such as changes in allowable pesticide use or farming methods - adds uncertainty to long-term planning for producers. This regulatory complexity can lead to price fluctuations, reduced supply, and longer timeframes for bringing organic products to market, ultimately affecting both producers and consumers. Despite these challenges, compliance with stringent regulations remains essential for ensuring the integrity of the organic food market and maintaining consumer trust.

Key Market Trends

Escalating E-Commerce Sales

Escalating e-commerce sales are a key trend in the United States organic foods market, reshaping how consumers purchase organic products. With the rise of online shopping, consumers increasingly prefer the convenience, wide selection, and home delivery options offered by e-commerce platforms. This trend has been amplified by the COVID-19 pandemic, which accelerated the shift toward online grocery shopping. Consumers can now easily access a variety of organic foods, including fresh produce, packaged goods, and specialty items, through online retailers like Amazon, Thrive Market, and direct-to-consumer websites from organic brands.

E-commerce also provides an opportunity for organic food brands to reach a broader audience, including those in rural or underserved areas where organic products may be limited in physical stores. Online platforms offer detailed product information, customer reviews, and subscription models, allowing consumers to make informed decisions and even set up regular deliveries.

This accessibility is particularly appealing to younger, tech-savvy consumers who prioritize convenience and flexibility. Also, many e-commerce platforms are integrating AI and personalized shopping experiences, offering tailored recommendations based on dietary preferences, past purchases, and health goals. As e-commerce continues to grow, it is expected to play an increasingly important role in driving the sales and growth of the U.S. organic foods market.

Increased Focus on Sustainability Packaging

An increased focus on sustainable packaging is a prominent trend in the United States organic foods market. As consumer awareness of environmental issues rises, there is growing demand for eco-friendly packaging solutions that align with the sustainability values of organic food brands. Traditional plastic packaging, which is non-biodegradable and contributes to pollution, is being replaced with alternatives like recyclable, compostable, and biodegradable materials. Many organic food companies are opting for packaging made from recycled content, plant-based plastics, or paper that is certified by sustainability standards such as FSC (Forest Stewardship Council).

This shift towards sustainable packaging not only meets consumer expectations but also helps brands differentiate themselves in a competitive market. Consumers are increasingly looking for products with minimal environmental impact, and sustainable packaging plays a key role in influencing purchasing decisions. Also, brands are becoming more transparent about their sourcing and manufacturing processes, providing consumers with information on how their packaging is environmentally friendly. Retailers are also embracing this trend by promoting products with eco-conscious packaging, often highlighting them as part of their sustainability efforts. As the organic foods market continues to grow, the adoption of sustainable packaging is expected to become even more widespread, helping to reduce waste and promote a circular economy while appealing to eco-conscious consumers.

Rising Demand for Organic Plant-Based Food

Rising demand for organic plant-based food is a significant trend in the United States organic foods market. As more consumers shift towards plant-based diets due to health, ethical, and environmental concerns, the popularity of organic plant-based products has soared. These foods, including plant-based meat substitutes, dairy alternatives, and plant-based snacks, offer nutritional benefits without the use of animal products, appealing to vegans, vegetarians, and flexitarians. Organic plant-based foods are particularly attractive as they align with the growing desire for clean, minimally processed foods free from pesticides, additives, and GMOs.

Health-conscious consumers are increasingly drawn to plant-based options as part of a preventative approach to chronic diseases like heart disease, diabetes, and obesity. Also, the environmental impact of animal agriculture has raised awareness, with consumers opting for plant-based diets to reduce their carbon footprint and promote sustainability. This trend is not only driven by dietary preferences but also by the expansion of availability in supermarkets and restaurants, where organic plant-based foods are becoming more accessible. Major food companies are capitalizing on this demand by introducing new, innovative organic plant-based products that cater to evolving consumer tastes, leading to substantial growth in the market. As this trend continues, organic plant-based food options are expected to be a key driver in the U.S. organic foods market.

Segmental Insights

Sales Channel Insights

Supermarkets/Hypermarkets dominated the United States Organic Foods market, due to their wide reach, extensive product offerings, and convenience. These retail channels provide consumers with easy access to a broad range of organic products, from fresh produce to packaged goods, all in one location. Major supermarket chains, such as Whole Foods, Costco, and Walmart, have expanded their organic food sections in response to rising consumer demand for healthier, sustainable options. The increased availability and visibility of organic products in these stores make it easier for consumers to incorporate organic foods into their daily lives. Also, competitive pricing and promotions offered by supermarkets and hypermarkets attract a larger consumer base, driving market growth. As these retailers continue to enhance their organic food offerings, their dominance in the market is expected to persist.

Regional Insights

The West region dominated the United States Organic Foods market, driven by a high concentration of health-conscious consumers and a strong demand for sustainable, organic products. States like California, which is a leader in organic agriculture, contribute significantly to the market's growth. The West also has a well-established infrastructure for organic food production, distribution, and retail, with many organic brands headquartered in the region. Also, the region's environmentally aware population and many health-focused grocery stores, farmers' markets, and specialty retailers have fuelled the demand for organic foods. As awareness of health and sustainability continues to rise, the West region remains a key driver in the U.S. organic foods market.

Key Market Players

• General Mills Inc
• Danone North America Public Benefit Corporation
• The Hain Celestial Group, Inc.
• Amy's Kitchen, Inc.
• Aurora Organic Dairy
• Sun-Maid Growers of California.
• Mondelez International Inc.,
• Micro Dried Fruits & Vegetables
• SunOpta, Inc
• Organic Valley

Report Scope:

In this report, the United States Organic Foods Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

United States Organic Foods Market, By Product Type:

• Fruits & Vegetables
• Meat
• Poultry & Dairy
• Processed Food
• Beverages
• Bakery Products
• Others

United States Organic Foods Market, By End User:

• Residential
• Commercial

United States Organic Foods Market, By Sales Channel:

• Supermarkets/Hypermarkets
• Convenience Stores
• Specialty Stores
• Online
• Others

United States Organic Foods Market, By Region:

• South
• West
• Mid-West
• North-East

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the United States Organic Foods Market.

Available Customizations:

With the given market data, the publisher offers customizations according to a company's specific needs. The following customization options are available for the report.

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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