Over half of all households in the US now purchase organic produce, as the sale of organic bananas alone – now a US$165 million market – soared by more than 30% last year, according to the Organic Trade Association (OTA).
Organic ‘value-added’ vegetables such as chopped kale, peeled carrots and ready-to-cook squash grew by 54% in 2015 to almost US$150 million.
“The organic produce market is growing and strong, and it is driving trends in produce innovation across the board,” said executive director and CEO said Laura Batcha at the inaugural Organic Produce Summit held in California, US from July 13-14.
The sold-out event attracted more than 500 attendees from the organic produce industry, and included a trade show with more than 70 exhibits from leading organic fresh fruit and vegetable producers.
The event showcased the booming US$13 billion organic fresh produce marketplace with a series of educational sessions hosted by OTA, and featured key industry speakers and networking opportunities.
Rising sales of fresh produce
Batcha showed findings of a report on the produce-buying habits of Americans compiled for the OTA by Nielsen, the global information and measurement company.
According to the OTA 2016 Organic Industry Survey released in May, fresh organic produce sales in the US reached US$13 billion in 2015.
Total sales of organic fruits and vegetables, including fresh, frozen and canned, amounted to US$14.4 billion.
The market includes US$5.7 billion worth of organic produce sold in the mass market (supermarkets, big-box stores and warehouse clubs), US$4.7 billion sold by specialty and natural retailers, and US$2.7 billion in direct sales (farmers’ markets and online).
Nielsen measures organic sales primarily from the mass market, and puts organic produce sales at US$5.5 billion.
The Nielsen figures do not include specialty and natural retailers, or direct sales.
Further, Nielsen’s data reflect grocery coding systems, which are based on retailer description and in which organic can be under-represented.
The Nielsen figures, however, delve down to the specific types of organic vegetable or organic fruit sold, providing detailed information on the buying habits of consumers in the major category of supermarkets and big-box stores.
Since 2011, the sales of produce in this country have increased over 25%.
Convenience, a greater awareness of the health benefits of produce, and an increased interest in local food sources largely are attributed to the increase.
And driven by the desire to improve upon already healthy food choices, organic fruit sales have soared 123% during that time, while organic vegetable sales have jumped by 92%.
The US organic industry saw its largest dollar gain ever in 2015, adding US$4.2 billion in sales.
Total organic food sales in the country were US$39.7 billion, up 11% from the previous year. Organic produce sales accounted for 36% of the organic market.
Almost 13% of all the produce sold in the US now is organic.
Eating healthy
The Nielsen findings showed that today’s organic produce shopper tends to be more child-focused than the average produce shopper.
The huge majority of these enthusiastic organic produce buyers – 77% – are going to their favorite grocery store or supermarket chain to buy their organic fruits and vegetables.
The findings bear important insights for retailers looking to draw more shoppers to the fresh produce section, as the booming demand for organic produce will spill over into purchases of conventional produce, said Batcha.
“Data show that the organic shopper is an extremely health-conscious consumer who is completely dedicated to eating fresh fruits and vegetables,” she said.
“Organic is a top choice because of the confidence in organic as the choice to avoid foods grown with toxic and persistent pesticides.”
“Because of this health-driven commitment retailers should not be afraid to differentiate organic produce on their store shelves,” she added.
“Shoppers recognize the USDA Organic seal and respond to positive messaging about what organic delivers, but at the end of the day they want to fill their carts with farm fresh foods – benefiting the entire produce section of the store.”
