U.S. Organic Product Sales Near $70B; All-Organic Trade Show Set for 2025
By Steven Hoffman
Is it true that the growth rate in sales of certified organic bananas is now outpacing that of conventional bananas? According to the Organic Trade Association (OTA), the answer is yes.
In fact, among an ever-expanding sea of certification seals in the retail sector, and despite inflation, the “Certified Organic” label continues to stand out for consumers who prioritize health, sustainability and clean-label products. So much so that U.S. sales of certified organic products grew 3.4% in 2023 to $69.7 billion, marking a new record for sales in the organic products industry.
According to the OTA, which conducted the 2024 Organic Industry Survey in collaboration with Nutrition Business Journal, organic food sales in 2023 totaled $63.8 billion, and sales of organic non-food products reached $5.9 billion, with organic personal care products reporting the strongest increase in that category, with growth of 7% in 2023.
On the food side, fresh organic produce continues to dominate as the primary entry point for consumers, who are increasingly knowledgeable about the “Dirty Dozen” — those fruits and vegetables the Environmental Working Group has determined to contain the most synthetic pesticide residues. In 2023, sales of organic produce grew 2.6% to $20.5 billion. Top sellers included avocados, berries, apples, carrots and packaged salads. OTA also noted that, indeed, in 2023, organic bananas recorded greater sales growth than non-organic bananas.
Organic Baby Food Drives Growth in Grocery
The second biggest selling category in the organic sector in 2023 was grocery, comprising breads and grains, condiments, and packaged and prepared foods. Among a diverse group of sub-categories in grocery, three stood out as top performers: in-store bakery and fresh breads, with sales of $3.1 billion and growth of 3%; dry breakfast products, which were up 8% to $1.8 billion in sales; and organic baby food and formula, up an impressive 11% to record $1.5 billion in sales in 2023.
According to the OTA survey, 2023 also saw a surge in functional and non-alcoholic beverages, which helped drive beverages as the third largest category in organics, posting growth of 3.9% and sales of $9.4 billion. In addition to the emergence of organic “mocktails,” organic wine sales were up 2.5% to $377 million, and organic liquor and cocktails showed strength as an emerging category with growth of 13% and sales of $59 million in 2023.
Organic dairy and eggs, the fourth-largest category in the organic food market, based on OTA’s survey, is another entry point for consumers who want clean, ethical sources of protein with lower environmental impacts. In 2023, organic dairy and egg sales were up 5.5%, totaling $8.2 billion. According to OTA, organic dairy and eggs now account for more than 8% of all dairy and egg sales. Milk and cream sales were up nearly 5% to $4.2 billion. Also, the organic dairy alternative category grew almost 14% in 2023 to approximately $700 million.
Leading among organic non-food items were organic supplements, tracking 4% growth and sales of $2.1 billion in 2023. Organic fiber remains the largest segment of U.S. organic non-food product sales, representing 40%, or $2.4 billion, of non-food category sales. According to OTA, growth in organic fiber sales was essentially flat year over year, due to restricted supply chain issues more than lack of buyer interest.
Price Gap Is Narrowing Between Conventional and Organic
According to OTA Co-CEOs Matthew Dillon and Tom Chapman, the increase in overall dollar sales in the organic market in 2023 was driven more by price increases than unit sales as the organic industry recalibrated its supply chain and dealt with retail price increases as necessary. However, they pointed out, consumers increased their purchases of many organic products, and unit sales were up for nearly 40% of the products tracked in this year’s survey.
In addition, the survey indicated that prices for many non-organic products climbed at a faster rate than organic products, meaning that the price gap is narrowing between conventional and organic, which, says OTA, should fuel growth for organic products in the coming year.
“It is encouraging to see that organic is growing at basically the same rate as the total market. In the face of inflation and considering organic is already seen as a premium category, the current growth shows that consumers continue to choose organic amidst economic challenges and price increases. Although organic is now a maturing sector in the marketplace, we still have plenty of room to grow,” said Tom Chapman.
Matthew Dillon added that to achieve this growth, “It is essential to educate consumers that choosing organic is a straightforward way to tackle some of the greatest challenges we face. Whether it's accessing healthy foods, improving transparency in supply chains, mitigating climate change, supporting rural economic resilience, protecting natural resources, or realizing the multitude of other benefits, effectively communicating and delivering on these promises is the key to expanding organic’s share of our dinner plate.”
The future for organic is not without its challenges. However, Chapman and Dillon assert that more consumers are aware of the potential health benefits associated with organic foods. Many consumers, too, especially the Millennial and Gen Z generations, they point out, are increasingly conscious of the ethical implications of their food choices. They are looking for products that align with their values, such as animal welfare, fair trade, and support for organic farmers. That means seeking out products with the USDA certified organic seal on the label.
OTA Members can download the full report here. A summary is available here.
Dedicated All-Organic U.S. Trade Show Announced
Since 1991, people from all over the world have attended, BioFach, the world’s only dedicated, all-organic trade show, held each year in Nuremberg, Germany. Now, targeting the world’s largest market for organic products, the producer of BioFach has announced it will host its first standalone, all-organic trade show in the U.S.
Dubbed BioFach America, the event will take place on June 2-4, 2025, in Atlanta.
“With BioFach America, we will host a purely organic trade show in the US. The whole organic value chain will be covered: from organic farming to retail,” said NürnbergMesse, producer of the event. According to the producer, every product presented at BioFach America must be USDA certified organic or carry an organic certification from an IFOAM Organics International accredited organization. For cosmetics, certifications such as COSMOS or Ecocert, are accepted.
In an interview with Organic Insider, Bill Ingwersen, CEO of NürnbergMesse North America, said, “BioFach America always had a presence, or section, at Natural Products Expo East, and last year in Philadelphia, we brought in 47 companies from around the world. With that show being canceled, it forced us to really ask the question: are people getting what they need at other shows or is there a true need for an organic one? We concluded that there was, in fact, a real need for a dedicated, all-organic platform in the U.S.”
When asked why Atlanta was chosen as the location for the inaugural event, Ingwersen told Organic Insider, “Since this is a U.S. show and not a regional one, people will have to travel, regardless of which city we chose. After many conversations with industry executives, it became clear that we had to make it an affordable show for everyone, including farmers. Atlanta has the world’s largest airport, has an ample supply of low-cost hotel rooms and is a very energetic, accessible city that has great infrastructure. In addition, it can support our growth as we move forward. Also, being able to serve an organic lunch to our attendees was a real hot button topic. All the catering coming out of the Atlanta Convention Center will be organic for the show, and if a city could not guarantee this, that was an immediate disqualification.”
Learn more about BioFach America here.
Cracking Down on Fraud: USDA Organic Enforcement Rules Take Full Effect in March 2024
This article first appeared in Presence Marketing’s September 2023 newsletter.
By Steven Hoffman
Organic food is big business in the U.S. – sales of organic products topped $61 billion in 2022 – and the certified organic label fetches a premium price for producers. So much so that fraud from both domestic and imported sources had become a major concern among organic industry business owners, investors and advocates.
That’s why such leading organizations as the Organic Trade Association (OTA) and others applauded the U.S. Department of Agriculture (USDA) when, earlier this year, the agency announced the Strengthening Organic Enforcement (SOE) final rule, which is set to be fully implemented and enforced in March 2024.
Representing the biggest change to organic regulations since the passage of the Organic Food Production Act in 1990, the SOE Rule was created to crack down on organic fraud. The new rule provides “a significant increase in oversight and enforcement authority to reinforce the trust of consumers, farmers, and those transitioning to organic production. This success is another demonstration that USDA fully stands behind the organic brand,” Jenny Lester Moffitt, USDA Under Secretary for Marketing and Regulatory Programs, said in a statement.
“The rule closes gaps in current organic regulations and builds consistent certification practices to prevent fraud and improve the transparency and traceability of organic products. Fraud in the organic system – wherever it occurs – harms the entire organic sector and shakes the trust of consumers in organic. This regulation will have significant and far-reaching impacts on the organic sector and will do much to deter and detect organic fraud and protect organic integrity throughout the supply chain,” OTA said in support of the new rule.
Liz Figueredo, quality and regulatory director at organic certifier Quality Assurance International (QAI), based in San Diego, California, told Nutritional Outlook in July 2023 that the new SOE Rule closes supply chain loopholes that existed in previous regulations. The new rule requires organic certification for all parts of the supply chain, including handlers and suppliers who were previously exempt, she said.
“This means that certifiers can no longer depend on documentation from uncertified handlers, which was often lacking, to verify the organic status of products. The rule also includes fraud-reduction techniques, such as requiring an Import Certificate for any organic ingredients or products imported into the U.S., which provides the total volume or weight of the imported products,” Figueredo said.
Who Is Affected by the New SOE Rule?
According to USDA, the SOE Rule may affect USDA-accredited certifying agencies; organic inspectors; certified organic operations; handlers of organic products; operations considering organic certification; businesses that import or trade organic products; retailers that sell organic products; and organic supply chain participants who are not currently certified organic.
Exemptions are limited to a few low-risk activities such as very small operations; certain retail establishments that do not process; storage and warehouse facilities that only handle products in sealed, tamper-proof containers or packages; distributors that only handle final retail-packaged products; and customs and logistics brokers that do not take ownership or physical possession of organic products.
However, exempt operations must still follow all other applicable portions of organic regulations, including co-mingling and contamination prevention, labeling requirements and record keeping. Transporters that only move organic products between certified operations, or transload between modes of transportation, do not need to be individually certified, but are the responsibility of the certified operation that loads or receives the product.
To see if your business is affected and for more information, visit the full text of USDA’s SOE Rule in the Federal Register. OTA, too, has a resource page with extensive information regarding preparing for full compliance with the SOE Rule, along with exclusive training materials for association members. OTA also offers a questionnaire for businesses that may not be sure if they need certification.
What Does the SOE Rule Do?
According to USDA, “SOE protects organic integrity and bolsters farmer and consumer confidence in the USDA organic seal by supporting strong organic control systems, improving farm to market traceability, increasing import oversight authority, and providing robust enforcement of the organic regulations.”
Key updates include:
Requiring certification of more of the businesses, like brokers and traders, at critical links in organic supply chains.
Requiring NOP Import Certificates for all organic imports.
Requiring organic identification on non-retail containers.
Increasing authority for more rigorous on-site inspections of certified operations.
Requiring uniform qualification and training standards for organic inspectors and certifying agent personnel.
Requires standardized certificates of organic operation.
Requires additional and more frequent reporting of data on certified operations.
Creates authority for more robust recordkeeping, traceability practices, and fraud prevention procedures.
Specify certification requirements for producer groups.
“SOE complements and supports the many actions that USDA takes to protect the organic label, including the registration of the USDA organic seal trademark with the USPTO. The registered trademark provides authority to deter uncertified entities from falsely using the seal, which together with this new rule provides additional layers of protection to the USDA organic seal,” USDA said.
For producers wanting to learn more about navigating and adhering to these new requirements, the Western Growers Association in partnership with the Organic Produce Network will host a session at its upcoming Organic Grower Summit, Nov. 29-30, 2023, in Monterey, California, entitled “The SOE Deadline Looms–Are You Ready?” The seminar is designed to help growers better understand the upcoming rule changes, which will affect producers, distributors, handlers and importers.
In addition, organic industry and policy veterans Gwendolyn Wyard and Kim Dietz recently founded Strengthening Organic Systems, an advisory firm focused on helping businesses with organic fraud prevention, supply chain investigations and compliance with USDA’s organic anti-fraud regulations.
Read More
How Will USDA’s Organic Regulation Changes Affect the Food and Nutraceutical Industries? – Nutritional Outlook
USDA Launches Organic Integrity Database Module – Organic Insider
Tighter Rules Now in Effect for USDA Organic Seal of Approval – Cosmetics and Toiletries News
Strengthening Organic Enforcement USDA Rule – California Certified Organic Farmers
USDA Bolsters Consumer Confidence in Certified Organic Products with New Enforcement Rule – New Hope Network
Steven Hoffman is Managing Director of Compass Natural, providing public relations, brand marketing, social media, and strategic business development services to natural, organic, sustainable and hemp/CBD products businesses. Compass Natural serves in PR and programming for NoCo Hemp Expo and Southern Hemp Expo, and Hoffman serves as Editor of the weekly Let’s Talk Hemp Newsletter, published by We are for Better Alternatives. Contact steve@compassnaturalmarketing.com.