06.10.20
According to the Organic Trade Association, the organic food market will continue to see the impact of COVID-19, though it is projected that the market segment will continue a rise seen in 2019, where sales his $55.1 billion globally. OTA projects that shoppers will continue to hold organic products at a significant level of importance into the months ahead, which will likely continue requiring families to eat many more home-cooked meals than they did in a pre-COVID world.
“Never before has the food we provide our families been more important, and consumers have turned to the trusted organic label,” OTA wrote in their annual market report. “Many solid-growth organic categories have seen demand exploding. Organic produce sales for one,, after jumping by more than 50% in the early days of kitchen stocking, were up more than 20% in the spring of 2020. Other categories experiencing softer growth have been seeing big boosts in demand: the run on groceries meant organic milk was in high demand, for example, and sales of organic eggs skyrocketed. Packaged and frozen organic foods saw double-digit growth.”
In 2019, organic food and non-food sales grew to $55.1 billion, up 5% from 2018, while both foods and non-foods shattered benchmarks. Organic foods were up 4.6%, while non-food sales were up a strong 9.2%. This outpaced the general market growth rate, which grew 2% for total food sales, and 3% for total non-food sales.
In 2019, produce was still in the definitive top position out of all organic foods, according to OTA. Fruit and vegetable sales were up nearly 5%, hitting $18 billion, comprising nearly a third of all organic food sales. 15% of the fruits and vegetables market in the U.S. is now organic, OTA reports. Organic dairy saw relatively low growth compared to other organic products, OTA said, in part due to an oversupply of skim milk and undersupply of butterfat which hampered growth in 2017 and 2018, though the category still grew at almost 2%, dwarfing the 0.2% growth seen in conventional dairy. Organic meat, poultry, and fish remained the smallest organic food category in 2019, with $1.4 billion in sales, but the segment saw almost 10% growth, the highest rate of any organic food category. The organic protein of choice was poultry, making up half of the organic meat/seafood category. The growth of the organic meats category was also a driver in the growth of organic ketchup and organic versions of “ethnic” sauces and spices, OTA reports, at rates of 16% and 15% respectively.
Following this market report, OTA’s 2020 Organic Industry Survey had positive findings for the year ahead.
“Our 2020 survey looks at organic sales in 2019 before the coronavirus outbreak, and it shows that consumers were increasingly seeking out the organic label to feed their families the healthiest food possible,” Laura Batcha, executive director and CEO of OTA, said. “Our normal lives have been brought to a screeching halt by the coronavirus. The commitment to the organic label has always resided at the intersection of health and safety, and we expect that commitment to strengthen as we all get through these unsettled times.”
The survey, which was published Tuesday, relied on a partnership between OTA and Mercaris Data Service and Category Partners’ insights to compile the latest outlooks for the organic sector, through an online flash poll of 3,188 “likely organic shoppers” in late April and early May. The results of this market research were hashed out within an OTA-led webinar here.
Experts believe that there are a few scenarios that may play out for the organic market in a post-coronavirus world. While price sensitivity may slow down the sales of more expensive organic products, extra awareness on health may be a driver for the growth of clean-label, OTA reports.
Staples, such as dairy, eggs, breads, pastas, rice, grains, and baking supplies are expected to see growth if they are able to meet demand, as are organic dietary supplements and other products with immune health claims.
“Never before has the food we provide our families been more important, and consumers have turned to the trusted organic label,” OTA wrote in their annual market report. “Many solid-growth organic categories have seen demand exploding. Organic produce sales for one,, after jumping by more than 50% in the early days of kitchen stocking, were up more than 20% in the spring of 2020. Other categories experiencing softer growth have been seeing big boosts in demand: the run on groceries meant organic milk was in high demand, for example, and sales of organic eggs skyrocketed. Packaged and frozen organic foods saw double-digit growth.”
In 2019, organic food and non-food sales grew to $55.1 billion, up 5% from 2018, while both foods and non-foods shattered benchmarks. Organic foods were up 4.6%, while non-food sales were up a strong 9.2%. This outpaced the general market growth rate, which grew 2% for total food sales, and 3% for total non-food sales.
In 2019, produce was still in the definitive top position out of all organic foods, according to OTA. Fruit and vegetable sales were up nearly 5%, hitting $18 billion, comprising nearly a third of all organic food sales. 15% of the fruits and vegetables market in the U.S. is now organic, OTA reports. Organic dairy saw relatively low growth compared to other organic products, OTA said, in part due to an oversupply of skim milk and undersupply of butterfat which hampered growth in 2017 and 2018, though the category still grew at almost 2%, dwarfing the 0.2% growth seen in conventional dairy. Organic meat, poultry, and fish remained the smallest organic food category in 2019, with $1.4 billion in sales, but the segment saw almost 10% growth, the highest rate of any organic food category. The organic protein of choice was poultry, making up half of the organic meat/seafood category. The growth of the organic meats category was also a driver in the growth of organic ketchup and organic versions of “ethnic” sauces and spices, OTA reports, at rates of 16% and 15% respectively.
Following this market report, OTA’s 2020 Organic Industry Survey had positive findings for the year ahead.
“Our 2020 survey looks at organic sales in 2019 before the coronavirus outbreak, and it shows that consumers were increasingly seeking out the organic label to feed their families the healthiest food possible,” Laura Batcha, executive director and CEO of OTA, said. “Our normal lives have been brought to a screeching halt by the coronavirus. The commitment to the organic label has always resided at the intersection of health and safety, and we expect that commitment to strengthen as we all get through these unsettled times.”
The survey, which was published Tuesday, relied on a partnership between OTA and Mercaris Data Service and Category Partners’ insights to compile the latest outlooks for the organic sector, through an online flash poll of 3,188 “likely organic shoppers” in late April and early May. The results of this market research were hashed out within an OTA-led webinar here.
Experts believe that there are a few scenarios that may play out for the organic market in a post-coronavirus world. While price sensitivity may slow down the sales of more expensive organic products, extra awareness on health may be a driver for the growth of clean-label, OTA reports.
Staples, such as dairy, eggs, breads, pastas, rice, grains, and baking supplies are expected to see growth if they are able to meet demand, as are organic dietary supplements and other products with immune health claims.