United States Organic Food Market By Size, Share and Forecast 2028

Summary

Report Description

The organic food market in the United States is experiencing high demand due to the increasing consumer awareness regarding the harmful impact of pesticides in food. Moreover, the growing consumer trend to shift towards a healthier lifestyle is further contributing to the market's growth.

United States Organic Food Market Scope

Organic food, whether fresh or processed, is the product of organic farming practices. It is cultivated without the use of synthetic chemicals, including human-engineered pesticides and fertilizers, and is free of genetically modified organisms.

The United States Department of Agriculture (USDA) states that there are several criteria that must be met for a product to be classified as organic. An animal-based food product can be considered organic if it has been raised without the use of antibiotics or growth hormones.

United States Organic Food Market Overview

The organic food market in the United States is expected to experience significant growth in the forecast years due to the rise in organic farming activities and various government initiatives to support organic farming in the country. According to data provided by the United States Department of Agriculture (USDA), the sales of organic fruits and vegetables accounted for 40.2% of the total organic sales in the country. Thus, with the increase in the consumption of various organic foods, it is expected to have a positive impact on the growth of the United States organic food market.

United States Organic Food Market Drivers

Organic farming aligns with the principles of sustainable agriculture, which aims to preserve the environment, maintain soil fertility, and protect natural resources for future generations. As sustainable agriculture gained traction, organic farming became an attractive option for environmentally conscious farmers. Organic farming practices focus on improving soil health and promoting biodiversity. By avoiding the use of synthetic chemicals, organic farms create healthier ecosystems that support beneficial insects, pollinators, and microbial life in the soil. According to data provided by the United States Department of Agriculture (USDA), the National Agriculture Statistics Service surveys revealed that the certified organic cropland acres increased by around 79% to reach 3.6 million acres, and certified farm operations increased by more than 90% to 17,445 farms in the country.

Organic farming reduces the environmental impact associated with conventional farming, such as chemical runoff and greenhouse gas emissions. This resonated with farmers who wanted to minimize their ecological footprint. Retailers and food manufacturers were expanding their organic offerings, creating new market opportunities for organic farmers. This expanded market access encouraged more farmers to adopt organic practices.

Moreover, consumers have become more aware of the after-effects of non-organic food production processes on the environment. The use of various synthetic substances and chemical fertilizers is severely harmful to human health and the environment. Therefore, consumers are shifting towards the usage of more environmentally sustainable and organic products.

Furthermore, various government initiatives to support organic farming are also assisting the growth of the United States organic food industry. For instance, in 2022, the United States Department of Agriculture (USDA), within the new Organic Transition Initiative, invested around USD 300 million, which will help build new and better markets and streams of income for farmers and producers.

United States Organic Food Market Trends

As more consumers seek healthier and more sustainable food options, the demand for organic products has increased significantly. Major retailers and grocery chains have recognized the potential of the organic food market and have committed to offering a wider selection of organic products. They have dedicated more shelf space and resources to accommodate organic offerings. Retailers have introduced their own private-label organic brands to provide more affordable organic options and compete with established organic brands. This move has increased the availability of organic products across different price points. Restaurants, cafes, and foodservice establishments have started incorporating organic ingredients into their menus to cater to health-conscious diners. This has extended the reach of organic offerings beyond retail stores. Many supermarkets and grocery stores have created dedicated sections or aisles for organic products. This makes it easier for consumers to identify and purchase organic items during their shopping trips.

The rise of e-commerce and online grocery delivery services has provided a platform for a broader range of organic products to reach consumers, including niche and specialty organic items. Retailers and food manufacturers have collaborated directly with organic farmers and suppliers to ensure a steady supply of organic produce and products, fostering relationships within the organic farming community. Beyond fruits and vegetables, the organic market has expanded to include a variety of food categories such as dairy products, meat, poultry, snacks, beverages, and pantry staples.

Challenges in the United States Organic Food Market

Organic farmers adhere to strict guidelines and avoid the use of synthetic chemicals, which can increase production costs. Organic farming methods might result in lower crop yields compared to conventional farming, reducing economies of scale and potentially raising prices. Obtaining and maintaining organic certification can be expensive for farmers and food producers, adding to the overall cost of organic products. The demand for organic products has increased over the years, but the supply may not always keep pace, leading to higher prices. Some organic brands position themselves as premium products, further justifying a higher price point.

Organic farming relies more on manual labor for tasks such as weeding, pest control, and soil management since synthetic chemicals are not used. Farmers must comply with strict organic certification standards, which involve additional paperwork, inspections, and fees. Organic farming methods often result in lower yields compared to conventional farming due to the avoidance of synthetic fertilizers and pesticides. Organic farmers frequently practice crop rotation and cultivate diverse crops to maintain soil health, which can require more planning and management. Organic farmers use natural methods to control pests, which may be less efficient and require more frequent monitoring.

Recent Developments

In 2021, Organic Prairie launched organic ground beef in the US, which is pre-seasoned with all-organic spices.
In 2023, Remedy Drinks launched Berry Blast Energy and Tropical Twist Energy drinks, that are made with organic ingredients including raw green coffee bean extract and ginseng which delivers an organic, and all-natural energy drink option. Both energy beverages are 100% plant-powered ingredients to fuel feel-good energy.

Market Opportunities

Consumers are becoming more health-conscious and seeking food options perceived as healthier and more natural. Organic food is often seen as a healthier choice due to its lack of synthetic chemicals and pesticides. There is a growing awareness of the environmental impact of conventional agriculture, leading consumers to support organic farming practices that prioritize sustainability and conservation. Consumers are increasingly concerned about the origin and production methods of their food. Organic certification provides transparency and assurance of food safety. Younger generations, particularly Millennials and Gen Z, are more likely to prioritize organic and sustainable food choices, influencing overall market demand. Retailers and foodservice providers have responded to consumer demand by increasing their organic food offerings, making organic products more accessible to a broader audience. Social media and online platforms have played a role in educating consumers about the benefits of organic food, leading to increased interest and demand.
The companies in the United States organic market have an opportunity to expand their business by launching different organic beverages in the country. For instance, Organic fruit juices like orange juice, apple juice, and mixed fruit blends, Organic herbal teas, green teas, and black teas, Organic almond milk, soy milk, oat milk, and other plant-based milk alternatives, Organic coconut water, Organic energy drinks, etc. The organic beverages market continues to expand as consumers prioritize health, sustainability, and environmentally friendly choices in their beverage selections. Businesses that offer a diverse range of organic beverage options and focus on transparency and sustainability are likely to find success in this growing segment of the organic food market.

Market Segmentation

The United States Organic Food Market is segmented based on product type, distribution channel, region and competitive landscape. Based on product type the market is segmented into organic fruits & vegetables, organic meat, poultry & dairy, organic processed food, others including pulses, cereals, etc. Further, based on distribution channel the market is fragmented into supermarkets/hypermarkets, Specialty stores, grocery stores, e-commerce and others, including departmental stores, direct selling. Based on region the market is divided into South, West, Midwest, Northeast.

Company Profiles

Sprouts Farmers Inc., General Mills, Inc., The Hain Celestial Group, Inc., Amy’s Kitchen, Inc., Aurora Organic Dairy, Eden Foods, Inc., Clif Bar & Company, LLC, Harris Teeter, LLC, Danone North America Public Benefit Corporation, Organic Valley are some of the leading companies in the United States organic food market.

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Attribute	Details
Base Year	2022
Historic Data	2018 – 2021
Estimated Year	2023
Forecast Period	2024– 2028
Quantitative Units	Value in USD Million, CAGR for 2018-2022 and 2023-2028
Report Coverage	Revenue forecast, company share, competitive landscape, growth factors, and trends
Segments Covered	Product Type Distribution Channel Region
Regional scope	South, West, Midwest, Northeast
Key Companies Profiled	Sprouts Farmers Inc., General Mills, Inc., The Hain Celestial Group, Inc., Amy’s Kitchen, Inc., Aurora Organic Dairy, Eden Foods, Inc., Clif Bar & Company, LLC, Harris Teeter, LLC, Danone North America Public Benefit Corporation, Organic Valley
Customization scope	10% free report customization with purchase. Addition or alteration to country, regional & segment scope.
Pricing and purchase options	Avail customized purchase options to meet your exact research needs. Explore purchase options
Delivery Format	PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request)

Report Scope:

In this report, United States organic food market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

United States Organic Food Market, By Product Type:

Organic Fruits & Vegetables
Organic Meat
Poultry & Dairy
Organic Processed Food
Others (Pulses, Cereals, etc.)

United States Organic Food Market, By Distribution Channel:

Supermarkets/Hypermarkets
Specialty Stores
Grocery Stores
E-commerce
Others (Departmental Stores, Direct Selling

United States Organic Food Market, By Region:

South
West
Midwest
Northeast

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the United States organic food market.

Available Customizations:

With the given market data, TechSci Research offers customizations according to a company’s specific needs. The following customization options are available for the report:

Company Information

Detailed analysis and profiling of additional market players (up to five).

United States Organic Food Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1. Introduction

1.1. Product Overview

1.2. Key Highlights of the Report

1.3. Market Coverage

1.4. Market Segments Covered

1.5. Research Tenure Considered

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Assumptions and Limitations

3. Executive Summary

3.1. Market Overview

3.2. Market Forecast

3.3. Key Regions

3.4. Key Segments

4. Voice of Customer Analysis (B2C Market)

4.1. Sample Size Determination

4.2. Respondent Demographics

4.2.1. By Gender

4.2.2. By Age

4.2.3. By Occupation

4.3. Brand Awareness

4.4. Factors Influencing Purchase Decision

4.5. Customer Satisfaction

5. United States Organic Food Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Product Type Market Share Analysis (Organic Fruits & Vegetables, Organic Meat, Poultry & Dairy, Organic Processed Food, Others (Pulses, Cereals, etc.))

5.2.2. By Distribution Channel Market Share Analysis (Supermarkets/Hypermarkets, Specialty Stores, Grocery Stores, E-commerce, Others (Departmental Stores, Direct Selling))

5.2.3. By Region Market Share Analysis

5.2.4. By Company Market Share Analysis

5.3. United States Organic Food Market Mapping & Opportunity Assessment

5.3.1. By Product Type Market Mapping & Opportunity Assessment

5.3.2. By Distribution Channel Market Mapping & Opportunity Assessment

5.3.3. By Regional Market Mapping & Opportunity Assessment

6. United States Organic Fruits & Vegetables Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Type Market Share Analysis (Skim Milk, Whole Milk, Flavored Milk)

6.2.2. By Distribution Channel Market Share Analysis (Departmental Stores, Convenience Stores, Supermarkets/Hypermarkets, Online, Others (Direct Sales, Institutional Sales, etc.))

7. United States Organic Meat, Poultry & Dairy Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Type Market Share Analysis (Mozzarella, Cheddar, Others)

7.2.2. By Distribution Channel Market Share Analysis (Departmental Stores, Convenience Stores, Supermarkets/Hypermarkets, Online, Others (Direct Sales, Institutional Sales, etc.))

8. United States Organic Processed Food Market Outlook

8.1. Market Size & Forecast

8.1.1. By Value

8.2. Market Share & Forecast

8.2.1. By Type Market Share Analysis (Flavored and Non-Flavored)

8.2.2. By Distribution Channel Market Share Analysis (Departmental Stores, Convenience Stores, Supermarkets/Hypermarkets, Online, Others (Direct Sales, Institutional Sales, etc.))

9. Market Dynamics

9.1. Drivers

9.1.1. Various Government Initiatives

9.1.2. Changing Consumer Preferences

9.1.3. Increased Organic Farming

9.2. Challenges

9.2.1. Low Awareness Among Consumers

9.2.2. High Product Cost

10. Impact of COVID-19 on United States Organic Food Market

10.1. Impact Assessment Model

10.1.1. Key Segments Impacted

10.1.2. Key Regions Impacted

10.1.3. Key Distribution Channel Impacted

11. Market Trends & Developments

11.1.1. Rising demand through online channels

11.1.2. Growing demand among millennials

11.1.3. Innovation in product offerings

11.1.4. Availability of variety of products

11.1.5. Focus on Health and Wellness

12. Porter’s Five Forces Model

12.1. Competitive Rivalry

12.2. Bargaining Power of Buyers

12.3. Bargaining Power of Suppliers

12.4. Threat of New Entrants

12.5. Threat of Substitutes

13. SWOT Analysis

13.1. Strengths

13.2. Weaknesses

13.3. Opportunities

13.4. Threats

14. Policy & Regulatory Landscape

15. United States Economic Profile

16. Competitive Landscape

16.1. Company Profiles

16.1.1. Sprouts Farmers Inc.

16.1.1.1. Company Details

16.1.1.2. Product & Services

16.1.1.3. Financials (As Per Availability)

16.1.1.4. Key market Focus & Geographical Presence

16.1.1.5. Recent Developments

16.1.2. General Mills, Inc.

16.1.2.1. Company Details

16.1.2.2. Product & Services

16.1.2.3. Financials (As Per Availability)

16.1.2.4. Key market Focus & Geographical Presence

16.1.2.5. Recent Developments

16.1.3. The Hain Celestial Group, Inc.

16.1.3.1. Company Details

16.1.3.2. Product & Services

16.1.3.3. Financials (As Per Availability)

16.1.3.4. Key market Focus & Geographical Presence

16.1.3.5. Recent Developments

16.1.4. Amy’s Kitchen, Inc.

16.1.4.1. Company Details

16.1.4.2. Product & Services

16.1.4.3. Financials (As Per Availability)

16.1.4.4. Key market Focus & Geographical Presence

16.1.4.5. Recent Developments

16.1.5. Aurora Organic Dairy

16.1.5.1. Company Details

16.1.5.2. Product & Services

16.1.5.3. Financials (As Per Availability)

16.1.5.4. Key market Focus & Geographical Presence

16.1.5.5. Recent Developments

16.1.6. Eden Foods, Inc.

16.1.6.1. Company Details

16.1.6.2. Product & Services

16.1.6.3. Financials (As Per Availability)

16.1.6.4. Key market Focus & Geographical Presence

16.1.6.5. Recent Developments

16.1.7. Clif Bar & Company, LLC

16.1.7.1. Company Details

16.1.7.2. Product & Services

16.1.7.3. Financials (As Per Availability)

16.1.7.4. Key market Focus & Geographical Presence

16.1.7.5. Recent Developments

16.1.8. Harris Teeter, LLC

16.1.8.1. Company Details

16.1.8.2. Product & Services

16.1.8.3. Financials (As Per Availability)

16.1.8.4. Key market Focus & Geographical Presence

16.1.8.5. Recent Developments

16.1.9. Danone North America Public Benefit Corporation

16.1.9.1. Company Details

16.1.9.2. Product & Services

16.1.9.3. Financials (As Per Availability)

16.1.9.4. Key market Focus & Geographical Presence

16.1.9.5. Recent Developments

16.1.10. Organic Valley

16.1.10.1. Company Details

16.1.10.2. Product & Services

16.1.10.3. Financials (As Per Availability)

16.1.10.4. Key market Focus & Geographical Presence

16.1.10.5. Recent Developments

17. Strategic Recommendations/Action Plan

17.1. Key Focus Areas

17.2. Target Regions

17.3. Target Product Type

`18. About Us & Disclaimer

Figures and Tables

Frequently asked questions

What are the drivers for the United States Organic Food Market?

The United States Organic Food Market is witnessing high demand owing to the various government initiatives to support organic farming in the country and consumers changing preference towards organic products.

What are the trends in the United States Organic Food Market?

The growing demand among millennials, growth through e-commerce and the rise in preference for various organic products are expected to cater to the market growth in the forecast years.

What are the challenges in United States Organic Food Market?

The high cost of the product due to the expensive organic manufacturing is expected to hinder the growth of the organic food market in the United States.

Which are the major companies operating in the United States Organic Food market?

Sprouts Farmers Inc., General Mills, Inc., The Hain Celestial Group, Inc., Amy’s Kitchen, Inc., Aurora Organic Dairy, Eden Foods, Inc., Clif Bar & Company, LLC, Harris Teeter, LLC, Danone North America Public Benefit Corporation, Organic Valley are some of the major companies operating in the United States organic food market.

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