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May 2025
The U.S. organic food market size was estimated at USD 89.00 billion in 2024 and is expected to rise from USD 95.41 billion in 2025 to nearly reaching USD 178.38 billion by 2034, growing at a CAGR of 7.20% during the forecast period from 2025 to 2034. Rising consumer awareness regarding health and wellness and increasing demand for organic, sustainable product significantly driving the market.
A significant trend driving the rise of organic sales remains a growing preference for cleaner ingredients, as consumers emphasize health and wellness for themselves and their families. This includes searching for foods and products that are “free from,” such as chemicals, hormones and antibiotics, toxins and pesticides, dyes and extra additives, along with looking for the USDA Organic seal. In recent times, mainly due to the worldwide pandemic, individuals are increasingly realizing that their health is their most valuable asset. Additionally, fostering a healthier lifestyle, food safety, and environmental concerns are gaining increased importance in society's decision-making processes. Food safety has emerged as a crucial concern affecting all age groups.
Various government and regulatory bodies promoting organic food practices by implementing various initiatives, support and funding. Agriculture Secretary Tom Vilsack today revealed that the U.S. Department of Agriculture is implementing further measures to reinforce the market for organic products grown in the U.S. and to assist producers pursuing organic certification. The USDA’s Agricultural Marketing Service will provide as much as $75 million in competitive grants through the newly established Organic Market Development Grant (OMDG) Program. Qualified entities encompass business organizations involved in the production or handling of organic foods, non-profit groups, tribal administrations, and state and local government bodies to support initiatives aimed at enhancing and broadening markets for organic products produced domestically. (Source: Usda)
In addition to basic organic items, specialized categories are becoming more popular. This comprises unusual fruits, distinctive dairy items, and one-of-a-kind snacks. By grasping changing consumer preferences, manufacturers can access these specialized markets. Consumer tastes are constantly changing, and certain consumers are in search of distinct and unusual culinary experiences. Grasping these shifts is crucial for sellers to pinpoint niche product segments that have significant demand. manufacturers can stand out in a competitive market by providing distinctive, premium organic products that appeal to particular preferences and values, thus reaching consumer groups looking for specialized and sustainable food choices.
Enhanced procurement strategies and supply chain management facilitate negotiations for better pricing, safeguarding product quality while reducing environmental harm. These actions correspond with the industry's principles and assist in satisfying the increasing need for organic goods, all while preserving the sector's reputation for quality and sustainability. Blockchain technology facilitates secure and immutable records of the entire supply chain, enhancing both transparency and trust.
A significant challenge confronting the U.S. organic food market is the higher cost of organic products in comparison to regular alternatives. Organic agriculture entails elevated production expenses, such as labor-intensive methods, restricted use of synthetic substances, and costly organic certifications. Further, disruption in supply chain also lower the availability of the raw material and adding to the increased cost of the product.
Country Level Analysis
Consumers in U.S. are more worried about the healthiness and ecological impact of their diets, resulting in greater opportunities for both local and international organic goods in the United States. In slightly more than ten years, the overall worth of organic product imports in the United States has almost increased twofold, escalating from $667 million in 2011 to about $2 billion in 2024. In that same timeframe, U.S. exports rose from $412 million to $582 million. As per import-export statistics, Canada is the biggest market for U.S. organic goods (importing products valued at $70 million each year), followed by Mexico with $40 million, Japan with $9 million, Taiwan with $7 million, and South Korea with $4 million. (Source: Tendata)
The fruits & vegetables segment dominated the U.S. organic food market with the largest share in 2024.
The significant driving factor for the expansion of organic fruit and vegetable demand is the increasing knowledge among consumers regarding the need for proper balanced diets and health benefits that are stem from regular intake of fruits and vegetables. Organic fruits and vegetables are well founded because for their less pesticide residues and increased nutrient content, which motivates consumers to pursue healthier dietary choices and expanding the market.
The dairy segment is observed to grow at the fastest rate in the U.S. organic food market during the forecast period.
Organic dairy farms, which generally permit their cows to graze, refrain from using growth hormones or antibiotics on their animals and are dedicated to treating the livestock humanely. Increased consumer purchasing power, better living conditions, and encouraging government measures, such as low-interest loans and credit options for organic dairy, further drive the expansion of the North American organic dairy market. According to a recent report from the U.S. Department of Agriculture, consumer sales of organic fluid milk rose by 78% between 2009 and 2022. Different government programs for organic dairy products are further enhancing the market.
Unprocessed segment held the largest share of the U.S. organic food market in 2024.
Increasing worries about preservatives and synthetic additives are leading consumers to move towards fresh and naturally sourced foods. Moreover, whole foods are considerably richer in nutrients compared to processed foods. The nutritional balance of vitamins, minerals, and nutrients found in a diet consisting of whole, natural, and unprocessed foods is unmatched by any diet that is heavily processed.
Processed segment is seen to grow at a notable rate during the predicted timeframe.
The area's established retail chains, along with consumer interest in frozen meals, snacks, and ready-to-eat items, maintain its leading position in the market. The U.S., especially, serves as a center for innovation in processed foods, emphasizing new product development and progress in food technology, which further strengthens its top position.
Supermarkets/hypermarkets segment led the U.S. organic food market in 2024.
Supermarkets operate with a distinct shopping format that enables you to navigate through aisles using carts or baskets and select items at your convenience. These markets provide attractive prices along with various promotions and discounts on their items to attract shoppers. Some even function at times with negative profit margins to attract customers. The rising quantity of hypermarkets throughout the U.S. enhances the market.
Online retail stores segment is expected to grow at the fastest rate in the market during the forecast period.
The e-commerce transformation has given organic brands and producers a strong platform to access a broader audience and access the increasing consumer demand. E-commerce platforms focused on organic goods have become convenient all-in-one destinations for shoppers looking for healthy, chemical-free options. Further digital marketing is also helping the e-commerce platform for the expansion of organic foods.
Nature’s Path
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Natural Grocers®, and Rodale Institute
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