Consumer Demand Driving Organic Food Prices and Growth

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The Biggest Barrier to Organic Foods is the High Prices…

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Original Article posted at Robyn O’Brien

Organic Produce Now Accounts for 13% of All Produce Sales

While organic produce continues to dominate all organic product categories with sales of $14.4 billion (up 10.6%) in 2015, other segments showed impressive growth, including organic fresh juices and drinks and organic eggs, with sales increases of more than 30% recorded over the previous year.

Of note, reports the Organic Trade Association (OTA), is that nearly 13% of all produce now sold in the U.S. is organic. Dairy, the second largest organic food category, grew 10% to $6 billion in sales, accounting for 15% of total organic food sales.

“Together, produce and dairy account for more than half of total organic food sales,” said Laura Batcha, CEO of OTA. That said, the organic snack food category posted $2.3 billion in sales, up nearly 14%, she observed.

Nearly 5% of all food sold in the U.S. is now organic, the survey reported.

Supply Chain, Production Still Behind Consumer Demand

To satisfy the double-digit demand for all things organic, the number of certified organic producers in the U.S. hit a record high in 2014, reported the U.S. Department of Agriculture (USDA) in April 2016.

According to market data released by the National Organic Program (NOP), there are now 21,781 certified organic operations in the U.S., and 31,160 certified organic operations worldwide. The number of domestic certified organic operations increased by almost 12% between 2014 and 2015, representing the highest growth rate since…

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