The US certified organic market achieved a record $69.7 billion in sales in 2023, as reported by the Organic Trade Association (OTA). This marks a 3.4% increase compared to 2022, primarily driven by pricing actions within the market.

Tom Chapman, co-chief executive officer of OTA, commented on the growth, stating, “It is encouraging to see that organic is growing at basically the same rate as the total market. In the face of inflation and considering organic is already seen as a premium category, the current growth shows that consumers continue to choose organic amidst economic challenges and price increases. Although organic is now a maturing sector in the marketplace, we still have plenty of room to grow.”

The produce category remains the largest contributor to organic market sales. Organic produce sales rose by 2.6% in 2023, reaching $20.5 billion and accounting for 15% of the total fruit and vegetable sales in the United States. Popular products in this category included avocados, berries, apples, carrots, and packaged salads. The OTA noted that produce often serves as an entry point for consumers interested in organic foods, appealing to their desire for clean and healthy products.

Following produce, the grocery category is the second-largest segment of the organic food market. Organic grocery sales increased by 4.1%, amounting to $15.4 billion. Key drivers in this category were in-store bakery and fresh breads at $3.1 billion, dry breakfast foods at $1.8 billion, and baby food and formula at $1.5 billion.

The beverages category, the third-largest organic segment, saw a 3.9% increase in sales, totaling $9.4 billion in 2023. Functional beverages, which include products aimed at enhanced hydration and improved mental focus, led this growth. Additionally, non-alcoholic beverages and mocktails experienced significant growth.

The OTA reported a 40% increase in unit sales across certified organic categories in 2023. Notably, many organic product prices rose at a slower rate compared to their non-organic counterparts, helping to reduce the price gap.

To further capitalize on this growth, the OTA emphasized the need for certified organic manufacturers to enhance the communication of organic benefits and address consumer confusion stemming from emerging label claims. Matthew Dillon, co-CEO of OTA, stated, “It is essential to educate consumers that choosing organic is a straightforward way to tackle some of the greatest challenges we face. Whether it's accessing healthy foods, improving transparency in supply chains, mitigating climate change, supporting rural economic resilience, protecting natural resources or realizing the multitude of other benefits, effectively communicating and delivering on these promises is the key to expanding organic’s share of our dinner plate.”

As the organic market continues to expand, clear and effective messaging about the benefits of organic products will be crucial in maintaining and accelerating this growth trend.