Press Release

United States Organic Food Market to Grow at a CAGR of 13.83% in the Forecast Period

Growing health-conscious consumers and increasing willingness to spend on premium products are driving the United States organic food market.

According to TechSci Research report, United States Organic Food Market By Product Type (Organic Fruits & Vegetables, Organic Meat, Poultry & Dairy, Organic Processed Food, Organic Beverages, Organic Bread & Bakery, Others (Spices, Pulses, Cereals & Food Grains etc.)), By Distribution Channel (Hypermarket/Supermarket , Specialty Stores, Grocery Stores, E-Commerce, Others (Independent Stores, Direct Selling)), By Region, By Top 10 States, Competition Forecast & Opportunities, 2026”, the United States organic food market stood at USD59.28 billion in 2020 and is projected to cross over USD125.65 billion by 2026F with the CAGR of 13.83% by 2026F.

Growth in the market can be attributed to increasing health, fitness, and well-being concerns among people, a growing number of chemical poisoning cases, rising awareness regarding the harmful effects of pesticide residues in food and its impact on health. The market growth can also be attributed to the government initiatives through various subsidies, and an increasing number of organic stores.

Furthermore, customers prefer organically produced food due to their rising concerns for health, the environment, and animals' welfare, and they are ready to pay a higher price for it. The belief that organic products are healthier pushes customers to buy more organic products, especially among younger consumers who desire better food options and are concerned about pesticides, hormones, GMOs, and antibiotics, as well as avoid highly processed food and artificial additives.

Organic consumers lead a very active lifestyle. They're part of a group of consumers who are both active and influential. Young consumers are most likely to buy organic products. In addition to it, millennials also are looking for healthier food. Their desire to change their eating habits, which motivates them to opt for organic food. People are being encouraged to adopt a certain lifestyle through rising media coverage of food trends and healthy eating, including bloggers on social media platforms such as Instagram.

Browse 19 market data Figures spread through 70 pages and an in-depth TOC on "United States Organic Food Market"

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The United States organic food market consists of the following segments, by product type, by distribution channel, by region, by top 10 states, and by company. In terms of product type, the United States organic food market is divided into organic fruits & vegetables, organic meat, poultry & dairy, organic processed food, organic beverages, organic bread & bakery, and others.

Among them, organic fruits & vegetables segment dominates the organic food market owing to increasing health concerns among people. Organic beverages are also growing owing to the rise in consumption of Non-GMO (Genetically Modified Organism) drinks and the shift of consumers' preference from caffeinated to organic drinks. The organic beverage includes the following health benefits like the low chance of diabetes, longer life expectancy, and reduced health-related diseases.

The rising trend of having healthy drinks along with healthy supplementary diets has further fueled the market growth. Furthermore, rising interest of consumers towards the consumption of clean labeled products and awareness towards the benefits of consuming organic beverages is driving the organic beverage market. In addition to it, due to increasing awareness related to various side effects of consuming alcoholic drinks people nowadays have started sifting towards organic alcoholic drinks.

In terms of distribution channel, the United States organic food market is divided into hypermarket/supermarket, specialty stores, grocery stores, e-commerce, and others. Among them, e-commerce channel is the second fastest growing in the United States organic food market due to increasing online delivery facility by organic certified companies in United States.

In terms of region, the United States organic food market is divided into South, West, Northeast, and Midwest. Among these, the Midwest region of the United States is the fastest-growing due to the increasing presence of organic certified stores in the various countries of the Midwest region. Some of the major players operating in the United States organic food market are Sprouts Farmers Market, Inc., General Mills, Inc., Danone North America Public Benefit Corporation (Danone North America), The Hain Celestial Group, Inc., Organic Valley, and others.

To remain competitive in the market companies are continuously involved in new product development and launches, mergers & acquisitions, involving new strategic alliances. For example, to expand its business, organic food company named Danone has acquired WhiteWave Foods Co. which specializes in organic, plant-based food and beverages brands, such as Silk almond milk and Earthbound Farm organic salad. After acquisitions Danone’s offerings increased in the natural and organic food category.

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“United States organic food market is anticipated to register healthy growth during forecast period. Unlike conventional food, organic food products are produced without using any kind of pesticides or fertilizers, which results in high cost of these products. Although high prices of organic food products are a barrier for consumers, the United States organic food manufacturers are working towards reducing the existing price difference between organic and inorganic food. Moreover, as demand for organic food products increases, product innovations and economies of scale would result in reduced cost of production, further driving the consumption of organic food market over the next five years.”, said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.

“United States Organic Food Market By Product Type (Organic Fruits & Vegetables, Organic Meat, Poultry & Dairy, Organic Processed Food, Organic Beverages, Organic Bread & Bakery, Others (Spices, Pulses, Cereals & Food Grains etc.)), By Distribution Channel (Hypermarket/Supermarket , Specialty Stores, Grocery Stores, E-Commerce, Others (Independent Stores, Direct Selling)), By Region, By Top 10 States, Competition Forecast & Opportunities, 2026” has evaluated the future growth potential of organic food market in the United States and provides statistics and information on market structure, size, share and future growth. The report is intended to provide cutting-edge market intelligence and help decision makers take sound investment decision. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges and opportunities present in the United States organic food market.

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