US Organic Food Market Witnessing a Healthy Growth Track: Forecast to Grow at a CAGR of 8.7% by 2027

Published | 01 January 2022

The US organic food market is growing at a high CAGR because of the increasing health awareness among consumers. Moreover, growing consciousness regarding the environmental impact of conventional farming due to the heavy uses of chemical fertilizers, pesticides, and other substances is also driving the market forward…

A recent study conducted by the strategic consulting and market research firm BlueWeave Consulting revealed that the US organic food market was worth USD 52.3 billion in 2020. According to the study, the market is estimated to grow at a CAGR of 8.7%, earning revenue of around USD 95.1 billion by the end of 2027. US organic food market is significantly proliferating because of the driving factors such as increasing health awareness among consumers and increasing environmental concern due to the heavy use of pesticides, chemical fertilizers, and other chemicals in conventional farming. In addition, the shift towards organic farming is providing lucrative growth opportunities for the U.S. organic food market. According to the 2019 Organic Survey reports, there has been a 17% increase in the number of certified farms in the U.S. between 2016 and 2019. This is anticipated to boost organic food production in the country, further increasing its accessibility, propelling its market growth.

Growing Shift Towards Organic Farming is Driving the US Organic Food Market Growth

Organic farming is gaining significant popularity in the United States. According to the Department of Agriculture’s National Agricultural Statistics Service, there were more than 14,000 certified organic farms in the US in 2016. Increasing awareness of the drastic impact of chemical fertilizers, pesticides, antibiotics, and other substances in conventional farming is influencing this shift towards organic farming. There is a high likelihood that this will increase the penetration of organic foods in the US market, which will boost the overall market.

Increasing Availability of Organic Foods in Supermarkets Chains Projected to Boost Market Growth

A recent survey showed that around 82% of Americans buy organic foods and most of the sales is derived through conventional grocery stores. Even though the younger demographic is inclined towards popular online grocery stores, the availability of variety of organic food products under one roof at retail stores, club stores and supercenters are getting popular among consumers. As a result, major supermarket chains such as Walmart, Target, Costco, Kroger, and Safeway have been adding organic foods to their store shelves, improving consumers' access to organic food, which is anticipated to boost the market growth during the forecast period.

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US Organic Food Market - By Distribution Channel

Based on distribution channels, the U.S. organic food market is segmented into online channels and offline channels. The offline channel is further classified into supermarkets/hypermarkets, convenience stores, retail stores, and others. On the other hand, the online segment accounts for the largest market share because of the inclination of the younger demographic towards the convenience of door-step delivery. The organic food brands resort to popular grocery sites such as Amazon.com as well as launch their own websites to boost their market sales. They also offer great deals and discounts through online platforms, along with subscription services to attract consumers, which favors the segment’s growth.

Impact of COVID-19 on US Organic Food Market

The growth of the organic food market was hindered after the unprecedented outbreak of the COVID-19 pandemic. The sudden imposition of lockdown resulted in panic buying of products by the consumers, which resulted in a shortage of stocks from convenience stores and supermarkets. The restrictions on distribution channels also led to severe losses to the organic food companies. However, the organic food brands resorted to online sales channels to boost their sales and meet the growing needs of consumers amid the global health crisis. The demand for organic food is anticipated to proliferate in the post-COVID-19 period with increasing health consciousness among consumers.

US Organic Food Market - Competitive Landscape

The leading players in the U.S. organic food market are WhiteWave Foods Company, Hain Celestial Group, General Mills, Nature's Path Foods, Amy's Kitchen, Newman's Own, Impossible Foods, Shenandoah Growers, Good PLANeT Foods, Rowdy Mermaid Kombucha, and other prominent players.

The market is highly concentrated among leading players such as WhiteWave Foods, General Mills, Hain Celestial Group, and holds a major share in the market. However, several organic food startups and small companies are emerging and are expected to give tough competition to big players in the coming years with their wide range of products. The companies constantly launch new products that meet the changing consumer needs and tastes. Furthermore, the adoption of competitive strategies such as partnerships, mergers, acquisitions, collaborations, etc., is also prominent in this market.

Don’t miss the business opportunity of the US organic food market. Consult our analysts to gain crucial insights and facilitate your business growth.

The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the U.S. organic food market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends of the U.S. organic food market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.

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