Washington, D.C.— Total organic sales reached a record $67.6 billion, according to the 2023 Organic Industry Survey released by the Organic Trade Association (OTA). Organic food sales broke through $60 billion for the first time, hitting another mark for organic.
According to the report, the sector’s 4% growth in sales value was nearly twice the pace of growth in 2021. Organic food sales totaled $61.7 billion, while the value of organic non-food sales hit nearly $6 billion. Certified Organic now accounts for 6% of total food sales in the U.S.
“Organic has proven it can withstand short-term economic storms” said OTA CEO Tom Chapman. “Despite the fluctuation of any given moment, Americans are still investing in their personal health, and, with increasing interest, in the environment, and organic is the answer. Organic’s fundamental values remain strong, and consumers have demonstrated they will come back time and again because the organic system is verified, and better for people, the planet and the economy.”
Produce Leads Organic
Fast facts from the survey:
- Organic produce was the top seller of all organic categories. Sales totaled $22 billion and was 15% of all fruit and vegetable sales in the nation.
- Organic beverages were the second best-selling organic category, reporting $9 billion in sales in 2022, up 4%. Organic coffee was the biggest-selling organic beverage, up almost 7%, with close to $2.3 billion in sales. Organic soft drinks and enhanced drinks broke through $500 million in sales at $503 million and saw robust growth of almost 14%.
The third highest-selling category was dairy and eggs at $7.9 billion, up over 7%. Continued demand and inflationary price increases helped boost the dollar sales in that category; yogurt and eggs both saw double-digit growth, with organic yogurt sales jumping by over 12% to $1.5 billion, and organic egg sales by 11% to around $1.2 billion.
Organic baby food and formula sales were reported up almost 13% to $1.4 billion. Sales of organic rice, grains and potato products up over 10% to $387 million, dip sales up a big 18% to $194 million, and sales of organic pork rose more than 10% to $63 million.
In the organic non-food category, sales of organic linens and clothing accounted for around 40% of sales, recording $2.4 billion in sales for a gain of 2.5%. Organic supplement sales held steady with sales of around $2 billion, while organic personal care products rose over 5% to $1.2 billion.
Segment to Watch: Beverages, Sober Curious
“Organic beverages continue to climb," said Angela Jagiello, Director of Education and Insights for OTA and coordinator of the annual survey. "They’re an area where shoppers are willing to experiment and are less price sensitive. Soft and enhanced drinks had a great year, with the non-alcoholic trend being a big contributing factor. Many younger shoppers are reducing or eliminating alcohol, and these organic beverages are a celebratory and sophisticated alternative.”
Organic Future is Bright
Organic sales have more than doubled in the past decade as Americans are consuming more organic products than ever before. “Organic is at that right intersection of environmental and personal health,” said Chapman. “Organic brings together the interest in human health and a healthy environment, and that offers organic a positive pathway forward and will help organic businesses withstand challenges in the future.”
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