USA: Organic fresh produce sales up 5,5% from 2020

Organic fresh produce grew sales by 5,5% in 2021, topping $9 billion for the first time and outperforming conventionally grown produce in year-over-year gains in both sales and volume, according to the Organic Produce Performance Report. 2021 published today by Organic Produce Network and Category Partners.

Despite the return of food service in 2021, sales and volume of organic produce at retail outlets still showed year-over-year growth in all four quarters last year. Total organic fresh produce sales for 2021 were $9.2 billion, an increase of $477 million compared to 2020.

The organic fresh berry category (which includes strawberries, blueberries, raspberries and blackberries) was the star when it came to year-over-year growth in 2021, with a 14% increase in sales and a 10% increase in volume.

Three categories (packaged salads, berries and apples) accounted for two-thirds of all organic fresh dollar growth in 2021 compared to 2020. Despite the large year-over-year dollar increase for organic berries, packaged salads were again the No. one product category by total sales, exceeding $1.5 billion.

In 2021, packaged salads continued to command one of the highest organic price premiums: $3,11/lb. about the conventional. Organic berries also exhibited significant price premiums over conventional berries: blackberries ($3.01/lb.), blueberries ($2.18/lb.), and raspberries ($2.52/lb.). Organic bananas, on the other hand, continued to have one of the smallest price premiums at $0.15/lb.

“While there remains a gap in average retail price per pound between organic and conventional, price increases in both categories last year were remarkably similar,” said Steve Lutz, senior vice president of Insights and Innovation at Category Partners. “The average retail sale of conventional increased by $0.08/lb. to $1,57/lb., while organics increased from $0,094/lb. at $2.97/lb. Granted, the percentage increase in organic [was] smaller, but the aggregate change was very close.”

In 2021, the total volume of organic products increased by 2 percent year over year, a figure significantly better than the -3.3 percent volume loss seen in conventional products. Organic bananas continued to be the largest volume mover, with 547 million pounds sold in 2021, showing a modest 3,4% increase from the previous year.

“It is very apparent that consumer grocery shopping last year reflected more traditional shopping trends compared to the COVID-inspired shopping shifts we saw in 2020,” said Matt Seeley, CEO of Organic Produce Network. . “At the same time, we saw many organic produce categories continue to show strong growth as part of the long-term trend of consumers moving towards organic produce and, in turn, increasing organic market share. ”.

Three categories (berries, watermelons and citrus) drove increases in total organic volume in 2021. Several powerhouse organic categories had year-over-year volume declines, including packaged salads, potatoes and carrots. Organic carrots saw a -4,4 percent volume decline, and were the only top 10 organic product sales category to see a sales decline (-1,3 percent) from 2020.

"Organic product sales in 2021, while up slightly less than expected, remain on par with the historical long-term growth trends we expect for organic products," Lutz said. “As the foodservice sector reopened, consumers began to switch some meals to foodservice channels. The net result in 2021 is that many product categories, especially vegetables, had weaker growth compared to 2020.

All four geographic regions of the country saw modest single-digit dollar growth in 2021, with the largest gains in the South. In that region, organic dollars were up 7,6%, while volume was up 4,3%. The West saw year-over-year sales growth of 3,6 percent, while volume was flat.

The fourth quarter of 2021 saw the eighth consecutive quarter of organic sales growth, up 4,9 percent from the same period last year. Organic produce sales for the fourth quarter topped $2.7 billion, with the berry category leading year-over-year volume and dollar growth. With sales of more than $333 million, organic berries were up 22% in dollar terms and 19% in volume compared to the fourth quarter of 2020.

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