Organic produce sales increase 1.6% in value in 2023

Published 4:15 pm Wednesday, April 10, 2024

Topping $9.6 billion, organic fresh produce sales in the U.S. in 2023 grew by 1.6% from the previous year. But volume, at 2.9 billion pounds, declined 0.1%.

Conventional produce showed a similar trend.

Repeating its percentage shares of the previous two years, organic produce made up 12% of all retail produce sales and accounted for 7% of total produce volume in 2023.

Working again with Category Partners, Organic Produce Network has created an annual report highlighting 20 of the leading category performers in organic produce.

Berries held the top sales spot for the second year in a row, with nearly $1.7 billion in sales, up 6% from the previous year. Volume sales were second only to bananas.

Price premium

“Organic berries had a 56% price premium over conventional, indicating consumers were willing to pay significantly more for the organic version of this popular fruit,” analysts said in the report.

Packaged salads were second in sales at $1.5 billion. Sales, however, declined 3% from the previous year and volume dropped 5.2% to 191 million pounds — perhaps due to the current inflationary environment, the analysts said.

“On the bright side, the category showed a strong 68% price premium over its conventional counterpart,” they said.

Apples came in a distant third in sales at $660 million, 0.9% lower than the previous year. Volume was down 2.4% to 236 million pounds — in part, due to a small Washington apple crop, the analysts said.

Willing consumers

“With a 47% price premium over conventional, organic apples demonstrated that consumers were willing to pay considerably more for the organic version of this staple fruit,” they said.

Citrus rounded out the bottom of the Top 10 sales list with $282 million in sales, up a strong 7.1% from the previous year. Volume, at 136 million pounds, was up an impressive 18.2%.

“On a less positive note, the category saw its price premium over conventional nearly cut in half to 25%,” the analysts said.

Volume mover

Bananas continued to be the top volume mover in 2023 with 538 million pounds sold, up 2.6% from the previous years. At $423 million, sales were up 4.3%.

“Organic bananas’ 30% price premium over conventional was one of the narrower ones among the categories explored in this report, making it an affordable option for the organic-curious yet budget-minded consumer,” the analysts said.

Berries eclipsed carrots to narrowly take the second spot by volume, at 251 million pounds, up 3.8% from the previous year. At nearly $1.7 billion, sales were up 6%.

Carrots came in third by volume at 251 million pounds, up 0.6% from the previous year. Sales of organic carrots were $424 million, up 2.2%.

Organic carrots had the slimmest price premium over conventional at 24%, “making them a great organic value option,” the analysts said.

Herbs and spices pulled up the rear of the Top 10 in volume at 85 million pounds, an increase of 2.7% from the previous year. They were fourth in sales, however, at $497 million, an increase of 4.1%.

“The brightest spot by far for this organic specialty category was its enormous price premium over conventional — a sky-high 305%,” the analysts said.

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