US sales of organic food rose to exceed more than $65bn last year, supported by growth in areas including bakery, fruit, dairy and eggs.
Sales of organic food reached $65.4bn in 2024, a rise of 2.3%, according to a report from industry body the Organic Trade Association.
According to the OTA, sales of organic produce climbed 5.2% to $21.5bn, helped by growing sales of berries and bananas.
Produce accounted for more than 30% of sales of all organic products, food and non-food. However, growth was not seen across the produce fixture, with sales of packaged salads down more than 4%.
Within grocery, sales of bakery and fresh breads grew by 2.8%, driven by artisanal products like sourdough, the OTA said.
Dry breakfast goods sales rose by 8.1%, as US consumers sought better-for-you options that “align with family dietary goals”, the association added.
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By GlobalDataConsumers cooking restaurant-quality meals at home and viewing food as medicine boosted demand for organic grocery ingredients, the report said.
“Younger consumers, particularly Millennials and Gen Z, are also helping shape grocery sales trends by balancing health-conscious choices with quality and indulgence,” the OTA said.
US sales of organic baby food and formula, at $1.6bn, grew by 3.8% but was “limited by supply and capacity constraints”.
Organic dairy and egg sales rose by 7.7% to $8.5bn. Sales of organic yogurt grew by 10.5%, its second-highest rate in more than 15 years, the OTA said.
Egg sales surged by 16.1%, partly due to the outbreak of avian influenza in the US that hit supplies and pushed up prices.
Overall, sales of certified organic products in the US reached $71.6bn in 2024, with organic non-food products accounting for $6.2bn of the total.
Looking ahead, the OTA projected a compound annual growth rate of 5.1% through 2029, with the organic sector expected to add approximately $18bn in sales by the end of the decade.
Organic Trade Association co-CEO Tom Chapman said: “When we look at the last two years, this is very good news that we are on the right trajectory with organic growing more than twice as fast as the total market.
“While we have significant opportunities to drive organic’s share of the total market, we are seeing increased consumer adoption of organic and a positive return to industry growth which are very good signs.”
Organic Trade Association co-CEO Matthew Dillon emphasised the importance of improved consumer education to increase adoption of organic products.
He suggested one way to support this effort would be “by adding product attributes to the USDA Organic logo, such as an organic dairy company being able to call out ‘no growth hormones’ or ‘no antibiotics’ as part of the Organic seal on their packaging”.
The narrowing price gap between conventional and organic products in categories such as groceries and dairy also made organic options more accessible to price-sensitive consumers, particularly in mainstream retail channels, the OTA said.
