Organic sales hit a record in 2020, with fresh produce increasing 11%

US organic sales soared to new highs in 2020, jumping by a record 12,4% to $ 61,9 billion.

Increase in organic products

It was the first time that total sales of organic food and non-food products exceeded the $ 60 billion mark and reflected a growth rate of more than double the 2019 pace of 5%, according to the Organic Industry Survey 2021 Posted Tuesday by Organic Trade Association.

Organic Trade Association

 

Black beans, flour, and chicken broth are usually not exhausted. It was in 2020. In that unprecedented year, organic's reputation for being better for you and the planet positioned you for dramatic growth.

In nearly all organic food aisles, demand jumped to near-record levels, propelling US organic food sales in 2020 to a record 12,8% to a new record of $ 56,4k millions. In 2020, nearly 6% of the food sold in the United States was certified organic.

Pandemic effects

The COVID-19 pandemic caused consumer dollars to drift almost overnight from restaurants and takeout to groceries, with traditional staples and pantry and freezer items flying off the shelves. Consumers' habits changed, online shopping and grocery deliveries skyrocketed, and new products were tested while families ate three meals a day at home.

“The pandemic caused abrupt changes in all of our lives. We have eaten at home with our families and often cook three meals a day. Good, healthy food has never been more important and consumers are increasingly looking for the eco-label. Organic purchases have exploded as shoppers choose high-quality organic products to feed and nurture their families, ”said Laura Batcha, Executive Director and CEO of the Organic Trade Association. Batcha announces the new data Tuesday on Organic Day at Natural Products Expo West.

Stock your pantry, refrigerator, and freezer with organic food.

At the forefront of the health food charge was the desire for fresh produce. Sales of fresh organic produce increased nearly 11% in 2020 to sales of $ 18.2 million. Frozen and canned fruits and vegetables also increased and frozen sales increased by more than 28%. Including frozen, canned and dried products, total organic fruit and vegetable sales in 2020 were $ 20.4 billion. More than 15% of the fruits and vegetables sold in this country are now organic.

Stocking in the pantry was overwhelmingly the main growth driver in 2020. As bread making and cookie baking swept kitchens across the country, sales of organic flours and baked goods grew 30% .

Consumers also turned to “food support” products to help them in the kitchen. Sales of sauces and spices brought the condiments category of $ 2.4 billion to a growth rate of 31%, and sales of organic spices increased by 51%, more than triple the growth rate of 15% in 2019. .

Meat, poultry and fish, the smallest of the organic categories at $ 1.7 billion, had the second-highest growth rate of nearly 25%.

Offer limitations

“The only thing that limited growth in the organic food sector was supply,” said Angela Jagiello, director of Education and Information for the Organic Trade Association. “Across all organic categories, growth was limited by supply, causing growers, distributors, retailers and brands to wonder where numbers would have peaked if supply could have been met.”

Jagiello, who heads the coordination of the survey for the association, also pointed out that due to the pandemic, not only the ingredients were taxed, but the packaging (bottle caps, bags, corrugated cardboard, bottles for dietary supplements) were in short supply as well. than workers. and drivers to transport the product, making it difficult for producers to speed up processing to meet consumer demand.

Steady growth in the non-food sector

The organic food category did not experience the same exceptional growth in 2020 as organic food, but its growth was stable with previous years. Sales of non-food organic products reached $ 5.4 billion, an increase of 8.5% and only slightly below the 9.2% reported in 2019.

Reflecting the pandemic and as in the conventional market, organic sales were driven by personal hygiene, hand sanitizers and cleaning products. Sales of organic household products posted a record growth of 20%.

Textiles and fibers, the largest category in the organic non-food sector, saw a slowdown in sales due to store closures and a drop in clothing purchases. That said, the category fared better than expected given its ties to physical retail and the closure of that sales channel for a significant period of time. For the year, sales of organic fibers (bedding, clothing and other textiles) in the US grew at a rate of 5%, compared to 12% in 2019, reaching sales of $ 2.1 billion.

Organic Trade Association

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