United States Organic Food Market will be US$ 144.15 Billion by 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 United States organic food market has seen remarkable growth over the past decade, reflecting increasing consumer awareness and demand for healthier and more sustainable food options. The market encompasses a broad range of products, including fresh produce, dairy, meat, packaged foods, and beverages. This sector is driven by several key factors, including health consciousness, environmental concerns, and food safety considerations.

Organic farming is a method used to produce food that emphasizes using natural processes and materials. Farmers and producers who adopt this method cultivate and grow food without synthetic chemicals such as artificial fertilizers and pesticides. They also avoid exposing food to radiation or using genetically modified (GM) ingredients. The use of manure and other natural fertilizers in organic farming not only enhances plant development but also promotes soil health. Animals bred organically are not administered antibiotics and hormones, ensuring the purity of the meat, cereals, dairy products, fruits, and vegetables most often purchased as organic foods.

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The organic food market in the United States is driven by increasing disposable income and a rise in certified organic farms. As people have more money to spend, they prioritize health and environmental concerns, leading to a growing demand for organic products. At the same time, the increase in certified farms means more organic produce is available, including fruits, vegetables, meats, and other items, which is helping the market expand. In 2021, sales of products derived from cattle and poultry, such as milk and eggs, increased by 16% to $2.9 billion from $2.5 billion in 2019. Additionally, sales of cattle and poultry increased by 29% to $2.2 billion in 2019 from $1.7 billion in total.

The range of available organic food products is driving the growth of the US organic food industry. Producers and merchants are increasing the variety of organic products they provide directly to the growing consumer demand for healthier and ecologically friendly options. This consumer-driven demand is a clear signal for producers to continue expanding their organic product offerings, thereby contributing to the overall growth of the organic food market. In October 2023, Dole introduced its specialized branch, Dole Organics, and its new consumer brand, "DOLE® GO Organic!," hoping 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 increasing awareness of ethical farming methods and environmental sustainability is driving the growth of the United States organic food market. When choosing organic products, consumers prioritize sustainable practices such as crop rotation and natural pest management over animal welfare and support for locally-owned, sustainable farming. The Organic Certification Cost Share Program (OCCSP) aims to make the National Organic Program (NOP) certification process more accessible for producers and handlers. Deficiency payments ensure financial stability for manufacturers who do not require loans, while marketing assistance loans support organic producers in maintaining cash flow during market downturns.

The US organic food market is growing due to the expansion of retail channels such as specialty shops, supermarkets, and internet platforms. These channels make organic products more accessible and increase awareness among a broader range of customers. They also provide convenience and variety, encouraging more customers to explore and purchase organic products. This wider reach and convenience factor increase revenue, customer attraction, and brand recognition, thus supporting market growth. According to the USDA, conventional grocery retailers accounted for 55.6% of organic food sales in 2021, surpassing natural food stores as the most popular outlet.

California Organic Food Market

The organic food market in California is thriving due to consumer demand for organic products. California produces 40% of the organic commodities in the United States and 68% of the country's organic vegetables. The state's favorable weather and diverse agricultural landscapes allow for producing various organic produce. Stringent organic certification requirements ensure quality and authenticity. California's food tradition and health-conscious population drive continuous innovation and growth in the organic food sector, making it a leading market nationwide.

United States Organic Food Market Industry Analysis

The leading players in the United States organic food market include 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 launched a new line of frozen desserts made with organic Greek yogurt. The bars come in six flavors and are certified organic and non-GMO by the USDA. Each 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.

Product Type – Market breakup in 7 viewpoints:

Organic Fruits and Vegetables
Organic Meat, Poultry and Dairy
Organic Processed Food
Organic Bread and Bakery
Organic Beverages
Organic Cereal and Food Grains
Others

Distribution Channel – Market breakup in 5 viewpoints:

Supermarkets/ Hypermarkets
Specialty Stores
Convenient Stores
Online Retail Stores
Others

States – Market breakup of 29 States:

California
Texas
New York
Florida
Illinois
Pennsylvania
Ohio
Georgia
New Jersey
Washington
North Carolina
Massachusetts
Virginia
Michigan
Maryland
Colorado
Tennessee
Indiana
Arizona
Minnesota
Wisconsin
Missouri
Connecticut
South Carolina
Oregon
Louisiana
Alabama
Kentucky
Rest of United States

All the Key players have been covered from 3 Viewpoints:

Overview
Recent Development
Revenue Analysis

Company 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.
Newman's Own

Related Reports:

Organic Food Market

Organic Baby Food Market

Europe Organic Food Market

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