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Organic Food Sales Increased in 2020

08/03/2021

According to a release from the Organic Trade Association, organic food sales in the U.S. increased 12.8 percent in 2020 compared to the previous year to attain a total of $56.4 billion.  It is estimated that between five and six percent of all food sold carries the USDA certified organic seal.  The Organic Trade Association documented fresh organic produce sales growth of 11 percent in 2020 to $18.2 billion.  Organic meat, poultry, and fish grew by 25 percent to $1.7 billion.  Total sales of organic fruit and vegetable products rose to $20.4 billion representing a 15 percent share in all U.S. fruit and vegetable sales.

 

Increases in organic sales of foods are not reflected in the situation relating to USDA certfied organic eggs. The number of hens on U.S. farms numbered 15.7 million during the second quarter of 2020, increasing 11 percent to 17.5 million during the second quarter of 2021. Notwithstanding the number of hens under organic certification and their potential production there is extensive downselling to cage-free. Certified organic hens represented 7.8 percent of the U.S. population of 225 million hens producing shell eggs but Nielsen data circulated by the AEB documented that only 2.9 percent of eggs were sold as organic in May. If USDA and Nielsen data are accurate and representative of the U.S., less than half of the organic eggs produced are in fact sold at a premium price as Certified Organic.

 

According to Laura Batcha, CEO of the OTA, demand was fueled by home cooking associated with COVID restrictions. Expansion during 2020 placed pressure on supply chains for both products and packaging with an expectation of an adequate supply for the current year.