United States Organic Food Market Report by Product Type (Organic Fruits and Vegetables, Organic Meat, Poultry and Dairy, Organic Processed Food, Organic Bread and Bakery, Organic Beverages, Organic Cereal and Food Grains, and Others), Distribution Channel (Supermarkets/ Hypermarkets, Specialty Stores, Convenient Stores, Online Retail Stores, and Others), States and Company Analysis 2024-2032

United States Organic Food Market Analysis

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.

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 Vegetables
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 

Distribution Channel – Market breakup in 5 viewpoints:

1.    Supermarkets/ Hypermarkets
2.    Specialty Stores
3.    Convenient Stores
4.    Online Retail Stores
5.    Others

States – Market breakup of 29 States:

1.    California
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

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

Report Details: