Press Release

United States Organic Foods Market to Grow with a CAGR of 8.25% through 2028

United States organic foods market is driven by various factors such as health and wellness trends, environmental and sustainability concerns, and the expansion of retailers and supply chains.

 

According to TechSci Research report, “United States Organic Foods Market – By Region, Competition, Forecast and Opportunities, 2018-2028F”, the United States Organic Foods Market stood at USD 76.30 billion in 2022 and is anticipated to grow with a CAGR of 8.25% in the forecast period, 2024-2028. The United States Organic Foods market has experienced remarkable growth and transformation over the past few decades. As consumer preferences have shifted towards healthier, sustainable, and environmentally-friendly food choices, the organic food industry has emerged as a dynamic and influential segment of the broader food market.

The roots of the U.S. organic foods market can be traced back to the mid-20th century when a growing number of consumers and farmers began to express concerns about the environmental impact of conventional agriculture practices, including the use of synthetic pesticides and fertilizers. This led to the emergence of the organic farming movement, with the first organic certification program established in 1973 by the California Certified Organic Farmers (CCOF). Over time, the organic industry developed standardized organic farming practices, labeling requirements, and certification processes. The passage of the Organic Foods Production Act of 1990 further facilitated the growth of the organic sector, eventually leading to the establishment of the National Organic Program (NOP) in 2002, which sets federal standards for organic agriculture and labeling.

Additionally, the U.S. Organic Foods market is heavily influenced by carrier partnerships and The U.S. organic foods market has witnessed impressive growth in recent years, with consumers increasingly opting for organic products due to health and environmental concerns. According to the Organic Trade Association (OTA), in 2020, the organic food market reached a record-breaking $56.4 billion in sales, marking a significant milestone in the industry's expansion. This robust growth has been driven by a combination of factors, including greater awareness of the health benefits associated with organic foods, concerns about pesticide residues and genetically modified organisms (GMOs), and an overall shift toward healthier dietary choices.

Health and Wellness Trends: Consumers are increasingly prioritizing health and wellness, seeking out foods perceived as more nutritious and devoid of synthetic chemicals. Organic foods are often perceived as healthier alternatives, free from synthetic pesticides, hormones, and antibiotics.

Environmental Sustainability: Growing environmental awareness has led consumers to choose organic products, which are produced using sustainable farming practices that promote soil health, reduce water usage, and minimize harm to ecosystems.

Demand for Transparency: Consumers are demanding more transparency in food production and supply chains. Organic certification provides a level of transparency and traceability that appeals to conscientious shoppers.

Access and Availability: The proliferation of organic food options in mainstream grocery stores has made these products more accessible to a broader demographic. This increased availability has contributed to the market's growth.

 

Browse over XX market data Figures spread through 83 Pages and an in-depth TOC on "United States Organic Foods Market

 

Government Support: Government initiatives, such as the USDA's organic certification program and research funding for organic agriculture, have encouraged organic farming practices and bolstered consumer confidence in organic products.

Consumer Education: Information dissemination through various media channels and educational campaigns has played a pivotal role in informing consumers about the benefits of organic foods, driving demand.

Premium Pricing: Despite their higher price point compared to conventional foods, many consumers are willing to pay a premium for organic products due to perceived quality and health benefits.

The higher cost of organic products can be a deterrent for price-sensitive consumers, limiting the market's reach. Additionally, maintaining a consistent supply of organic ingredients can be challenging, especially for processed foods, leading to occasional shortages. Furthermore, organic certification can be expensive for farmers and producers, particularly for smaller operations, creating barriers to entry.

The complexity of global supply chains has led to concerns about fraud and mislabeling in the organic sector, undermining consumer trust. Additionally, as demand grows, larger food conglomerates have entered the organic market, raising questions about the maintenance of organic standards and the impact on smaller, independent producers.

The United States Organic Foods market is segmented into product type, sales channel, and region.

Based on product type, the market is segmented into organic fruits & vegetables, organic meat, organic poultry & dairy, organic processed food, organic beverages, organic bread & bakery, and others (spices, pulses, cereals & food grains, etc.). Among these, the organic fruits & vegetables have a significant share in the United States organic foods market. One of the primary drivers of the significant share of organic fruits and vegetables is the increasing consumer demand for healthier and more natural food choices. Consumers have become increasingly health-conscious, seeking products that are free from synthetic pesticides, herbicides, genetically modified organisms (GMOs), and artificial additives. Organic fruits and vegetables align perfectly with these preferences as they are grown without the use of synthetic chemicals and genetically modified seeds.

Based on sales channel, the market is segmented into supermarkets/hypermarkets, specialty stores, grocery stores, online, and others (direct sales, etc.). Among these, online has a significant share in the United States organic foods market. Online shopping offers unparalleled convenience for consumers looking to purchase organic foods. It eliminates the need for physical store visits, allowing customers to browse and buy organic products from the comfort of their homes or on-the-go through mobile devices. This accessibility has been a major driving force behind the online channel's market share growth.

 

Key market players in the United States Organic Foods market include:

  • Sprouts Farmers Market, Inc.
  • General Mills, Inc.
  • Danone North America Public Benefit Corporation (Danone North America)
  • The Hain Celestial Group, Inc
  • Organic Valley
  • Amy's Kitchen, Inc.
  • Aurora Organic Dairy
  • Sun-Maid Company (Plum Organics)
  • Eden Foods, Inc.
  • Clif Bar & Company

 

Download Free Sample Report

Customers can also request 10% free customization in this report.

 

“The United States organic foods market has experienced impressive growth and transformation over the past few decades. Organic foods, which are produced without synthetic pesticides, herbicides, genetically modified organisms (GMOs), or antibiotics, have become increasingly popular among American consumers. This shift in consumer preference is driven by various factors, including health consciousness, environmental awareness, and concerns about the quality and safety of conventional food products. One of the defining features of the U.S. organic foods market is its size and diversity. The market spans a wide range of products, including organic fruits and vegetables, dairy products, meat and poultry, packaged goods, and even organic versions of processed foods like snacks and beverages. This diversity caters to the evolving dietary preferences of consumers, including those following plant-based diets. Organic certification, regulated by the U.S. Department of Agriculture (USDA), is a cornerstone of the organic foods market. The USDA Organic seal signifies compliance with strict organic standards, ensuring transparency and consumer confidence. Consumers trust this label as an assurance of organic integrity.” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based Global management consulting firm.

“United States Organic Foods Market Segmented By Product Type (Organic Fruits & Vegetables, Organic Meat, Organic Poultry & Dairy, Organic Processed Food, Organic Beverages, Organic Bread & Bakery, Others (Spices, Pulses, Cereals & Food Grains, etc.)), By Sales Channel (Supermarkets/Hypermarkets, Specialty Stores, Grocery Stores, Online, and Others (Direct Sales, etc.)), By Region, Competition, Forecast and Opportunities, 2018-2028F”, has evaluated the future growth potential of organic foods and provides statistics and information on market structure, size, share, and future growth. the report intends to provide cutting-edge market intelligence and help decision-makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the United States organic foods market.

 

 

Contact

Mr. Ken Mathews

Techsci Research LLC

420 Lexington Avenue, Suite 300,

New York, United States- 10170

Tel: +13322586602

Email: [email protected]

Website: www.techsciresearch.com

Relevant News