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.
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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
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“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.
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Research LLC
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