American consumers have not had their fill of organic products yet. In fact, sales of organic products in the United States jumped to $35.1 billion in 2013, up 11.5 percent from the previous year’s $31.5 billion and the fastest growth rate in five years. This is according to the latest survey on the organic industry from the Organic Trade Association.
Americans’ hunger for organic products is not expected to ease any time soon. The OTA survey projects that growth rates over the next two years will at least keep pace with the 2013 clip and even slightly exceed it.
“The U.S. organic market is experiencing strong expansion, with organic food and farming continuing to gain in popularity,” said Laura Batcha, Executive Director and CEO of OTA. “Consumers are making the correlation between what we eat and our health, and that knowledge is spurring heightened consumer interest in organic products.”
According to the survey, organic food sales in 2013, at $32.3 billion, accounted for roughly 92 percent of overall organic sales. Non-food organic products, including flowers, fiber, household products and pet food, are currently a very small part of the total organic market, but are making quick in-roads. Sales of non-food organic products – at almost $2.8 billion – have jumped nearly eight-fold since 2002 and have almost doubled in market share.
A niche industry in the huge food sector just a decade ago, consumer purchases of organic food first broke through the $30 billion mark in 2012 and now account for more than 4 percent of the $760 billion annual food sales in the United States. More telling, the growth rate of organic food sales, which has averaged almost 10 percent every year since 2010, has dwarfed the average annual growth of just over 3 percent in total food sales during that same period.
A product breakdown of the organic food sector shows that the fruit and vegetable category continues to lead the sector with $11.6 billion in sales, up 15 percent. With more than 10 percent of the fruits and vegetables sold in the United States now organic, the $1.5 billion in new sales of organic fruits and vegetable represented 46 percent of the organic sector’s $3.3 billion in new dollars.
The relatively small organic condiments category posted the strongest growth, at 17 percent, to reach sales of $830 million. Also showing double-digit growth were the organic snack food sector (up 15 percent to $1.7 billion), organic bread and grains (up 12 percent to $3.8 billion), organic meat, poultry and fish (up 11 percent to $675 million) and the rapidly expanding organic packaged and prepared food sector (up 10 percent to $4.8 billion).
Just two categories of the organic food sector showed single-digit growth rates. The $4.9 billion dairy sector grew by 8 percent, and sales of organic beverages slowed to a 5 percent growth rate to around $4 billion.