U.S. sales of certified organic products grew 5.2% to hit a record $71.6 billion in 2024, according to a new report from the Organic Trade Association.

The overall marketplace rose by 2.5%.

“It’s outcompeting the rest of the store,” said Brenna Davis, CEO of Organically Grown Company.

Experts said the region should be making more of a concerted effort to build up its processing and supply chain capabilities to meet demand for organic.

“This growth just shows such a great opportunity for the Pacific Northwest, because we can produce so many great things,” said Amy Wong, director of the Oregon Organic Coalition.

Health and wellness

Organic food sales totaled $65.4 billion and non-food products reached $6.2 billion in 2024.

Sales growth was influenced by shoppers prioritizing health and wellness with “free from” foods and products.

Price margins between conventional and organic products also shrank and most organic food sales occur in mainstream stores where shoppers are price sensitive.

Melissa Spear, executive director of the Tilth Alliance, a Washington organic nonprofit, said the price gap narrowed in part because organic businesses, including large companies, are figuring out ways to reduce costs.

“I do think organic in general is always going to tend to be more expensive,” Spear said.

Produce leads the way

Produce remained the top category for organic products, with $21.5 billion in sales, up 5.2%.

Organic produce had a 15.5% market penetration rate.

Berries remained a star, with sales rising 10.3%. Davis said GLP-1 medications for weight loss boosted demand for nutrient-rich foods.

New apple varieties and tropical fruits also saw gains.

Though organic dairy alternatives saw a 13.5% sales increase to reach $850 million, organic milk sales hit $3.9 billion.

Egg sales jumped 16.1% due in part to highly pathogenic avian influenza, which caused all egg prices to surge while leaving bare grocery shelves.

Organic meat sales are relatively small at about $2.4 billion, byt sales increased by 16.1%, with organic beef surging 37% — fueled by imports from Australia and Uruguay.

Positive outlook

The report projects that growth will continue, adding $18 billion in sales to the segment by the end of the decade.

A major factor in that outlook is strong interest among younger generations focused on health and environmental factors.

Experts said younger generations will continue to buy organic as they age and income levels rise, buoying the market penetration rate.

“A lot of us have been talking about how we alter our sales pitch and our communications so that it resonates with Gen Z,” Davis said.

Emerging challenges

There are some potential headwinds for organic products, like potential inflation from tariffs and labor shortages.

“Those challenges pertain to agriculture in general,” Spear said.

She added organic farming is generally more labor intensive and there’s a global market for organic products from the Northwest.

Chaotic federal changes have resulted in funding uncertainty for USDA organic programs, but Wong hoped that the segment could gain momentum from the Make America Healthy Again movement.

Spear said organic farmers should be more optimistic than those who don’t participate in the segment.

Top organic sales categories 2024

Total — $71.6 billion, up 5.2%

Produce — $21.5 billion, up 5.2%

Grocery* — $15 billion, up 4%

Beverages — $9.5 billion, up 5.2%

Dairy and eggs — $8.5 billion, up 7.7%