Organic produce sales expand in 2023
The Organic Produce Network (OPN) has released data on organic produce sales for the previous year.
Topping $9.6 billion, organic produce sales in the U.S. grew by 1.6% in 2023, while volume declined 0.1%, according to the State of Organic Produce 2023 report.
The report produced by OPN with data analysis by Category Partners showed conventional produce sharing a similar trend, with a year-over-year sales increase of 1.9% and nearly flat volume growth of 0.1%, according to a news release.
Repeating its percentage shares of the prior two years, organic produce made up 12% of all retail produce sales in 2023 and accounted for 7% of total produce volume, according to the release.
By total sales, berries held the top organic produce spot for the second year in a row in 2023, raking in $1.6 billion. Packaged salads followed close behind, with sales of $1.51 billion, and apples took a distant third with sales of $660 million.
As was the case in 2022, year-over-year sales performance among individual organic produce categories in 2023 varied quite widely: broccoli (7.5%), citrus (7.1%), and berries (6%) showed the best growth, while avocados (−6.6%), kale (−5.9%), and packaged salads (−3%) were the worst performers.
Regarding sales by volume, year-over-year organic produce performance also ranged widely. Cucumbers (8.6%) and broccoli (6.3%) performed well. The widest year-over-year loss was found in celery (−16.6%), which was at least in part due to wet and cold weather in California. The next-worst volume performers in 2023 were grapes (−10.4%) and bell peppers (−7%).
As is well-known, organic produce generally commands a price premium over conventional. However, when it comes to individual produce items, these premiums span a wide range. In 2023, the best price premium by far was found in organic fresh herbs and spices, which sold for a whopping 306% more on average than their conventional counterparts. Other top performers included lettuce (119%), tomatoes (103%), and potatoes (92%).
The narrowest price premiums over conventional in 2023 were found in carrots (24%), citrus (25%), and bananas (30%). These three items represent an excellent opportunity to market to budget-minded organic consumers as well as those who generally buy conventional but are curious about organics, according to the release.
Organic onions were another item that demonstrated interesting year-over-year regional performance. Both sales and volume decreased significantly in the Midwest, with respective losses of 6.5% and 13.2%, while both measures increased substantially in the Northeast, with respective gains of 8.2% and 6.9%.
Organic bell peppers took a big volume plunge in the West, declining by 18.1%, yet they showed solid volume increases in both the Northeast (6.6%) and the South (8.1%), and all four regions saw single-digit sales gains in the category. In keeping with the trend of the overall organic produce sector, organic bell peppers had their largest sales increase in the South (8.1%).
Read more of the report here.