United States Organic Food Market Size And Forecast Report 2024-2032

United States Organic Food Market, Size, Share,

United States Organic Food Market value is predicted to be about US$ 144.15 Billion by 2032. The CAGR for the market from 2024 to 2032 is 10.35%. Renub Research said that it amounted to US$ 59.41 Billion in 2023.

The method used to produce some foods is called "organic." Genetically modified organisms (GMOs), artificial chemicals, hormones, and antibiotics have not been used in the cultivation or farming of organic food. To be designated as organic, a food product must be free of synthetic food additives. These consist of monosodium glutamate (MSG), coloring, flavoring, artificial sweeteners, and preservatives.

According to the Nutrition Business Journal, fruits and vegetables comprised 40% of United States organic food sales in 2021. Dairy and eggs came in second with 13%. Drinks accounted for 11% of the total, followed by packaged/prepared foods (11%), bread/grains (9%), snack foods (6%), condiments (5%), and meat, fish, and poultry (4%).

United States Organic Food Industry Growth Opportunities

Increase in the number of organic farms

For more than ten years, organic farming has been one of the fastest-growing sectors of American agriculture. The goal of organic farming is to produce a sustainable balance of natural resources. Production carried out using organic techniques without the use of chemical fertilizers is equally significant. The expansion of certified organic farms is driving the United States organic food industry.

From 2011 to 2021, certified organic cropland acres increased by 79% to 3.6 million acres, while pastureland/rangeland decreased by 22% to 1.3 million acres. Additionally, certified operations increased by more than 90% to 17,445 farms, according to USDA National Agricultural Statistics Service surveys (2011 and 2021).

Government Initiatives and Funding Opportunities

Governments may be beneficial in creating stable local markets by implementing laws and initiatives that meet demand. The financing programs help the US organic food business grow even further.

Over the past 20 years, more authorized federal money has been available to USDA projects to assist organic research. The Organic Agriculture Research and Extension Initiative's mandatory spending authorization increased from $3 million in 2002 to $50 million in 2023.
The Organic Trade Association wants to see more American organic products represented internationally. With about 16 sponsored companies, plans are underway to sponsor the most significant organic contingent at Biofach. Activities funded by OTAs will take place everywhere once more, including in hitherto unexplored locations.
As part of its commitment to support producers pursuing organic certification and to expand the market for domestically cultivated organic commodities, the U.S. Department of Agriculture (USDA) is taking further action. The U.S. Department of Agriculture's (USDA) Organic Transition Initiative, introduced in the fall of 2022, includes several financing opportunities as part of a suite of services to assist current organic farmers and those switching to organic production and processing.

Environment Sustainability

Even though organic farming is significantly more expensive than non-organic farming, it has grown to be the most common alternative agricultural method in the United States and worldwide. The gradual transition to organic agriculture has primarily occurred due to increasing consumer concern about the potential health effects of unintentionally ingesting chemical fertilizers and pesticides. Organic agriculture is generally considered a more sustainable food production option. The market for organic foods in the US is growing due to these causes.

According to research firm Prodege, 78% of Americans will pay more for products that provide "environmental/sustainable/charitable benefits" in 2023. Customers specifically state that they are willing to pay extra for products that come from companies "committed to social and environmental change" (29%), are organic (35%), or are environmentally sustainable (41%).
The National Organic Program (NOP) is the government regulatory structure that oversees crops and livestock grown organically. The program is managed by the U.S. Department of Agriculture (USDA), which also upholds the NOP's rules and guidelines and controls how the word "organic" is used on food labels.

California Organic Food Industry.

California is one of the leading states in the US organic food market. This is due to the state's increased use of organic farming.

The mission of California Certified Organic Farmers (CCOF) is to convert thirty percent of the state's agricultural acreage to organic farming by 2030 and spread the advantages of organic agriculture throughout the state. Organic farming is a little under 10% of California's total cropland.

The increased demand for organic food drives additional growth in the California organic food industry.

According to the USDA NASS, 40% of the organic goods sold in the United States are produced in California, including 68% of the nation's organic veggies. For the past twenty years, California's organic vegetable-producing area has grown by an average of 13% every year.

Agriculture in California has a chance that it has only just started to take advantage of. The states must implement laws that use organic farming as a realistic, evidence-based strategy to address the intricate problems facing the California organic food industry.

The United States Department of Agriculture (USDA) has given funds from the National Farm Bill to the California Department of Food and Agriculture (CDFA), which will then distribute them to businesses that have obtained organic certification from a USDA-recognized certifier. This initiative aims to assist in defraying the cost of becoming certified organic.

United States Organic Food Market News.

The major companies in the United States organic food market are 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.

In March 2024- Alden's Organic introduced a new range of frozen desserts made with organic Greek yogurt. The bars come in six flavors. According to the business, these bars are USDA-certified organic and non-GMO. Each serving of frozen treats comprises between 80 and 100 calories, up to 3 grams of protein, and live, active probiotic cultures.
In January 2024- Danone decided to sell Wallaby and Horizon Organic, its premium organic dairy divisions, to American investment firm Platinum Equity.
In June 2023- The First Organic Regenerative Ice Cream in America Alec's Ice Cream is a national favorite that hits freezers.
In March 2023- At Natural Products EXPO West, Planet Based Foods released a new hemp-based, organic vegan ice cream, marking the company's entry into the non-dairy frozen dessert market.

Product Type– Market breakup in 7 viewpoints: