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Growth Patterns in the U.S. Organic Industry

In: Business and Management

Submitted By yelia
Words 1431
Pages 6
United States Department of Agriculture
Economic Research Service

Growth Patterns in the U.S. Organic Industry by Catherine Greene

U.S. consumer demand for organically produced goods has grown continuously since USDA established national standards for organic production and processing in 2002. And, while Americans economized on their food purchases during the 2007-09 recession, including purchases of organic products, growth in demand for organic products rebounded quickly following the recession. Industry analysts estimate that U.S. organic food sales were $28 billion in 2012 (over 4 percent of total at-home food sales), up 11 percent from 2011. USDA has begun organic regulation of nonfood agricultural products—for example, laundry detergent with organic coconut oil, aloe vera, and other ingredients—which accounted for another $2.2 billion in organic sales in
2011, according to the Organic Trade Association.
Although USDA does not maintain official statistics on U.S. organic food sales, industry data suggest that the market share of organic sales held by various food categories has been remarkably stable over the last decade. Produce (fruits and vegetables) and dairy are still the top two organic food categories, accounting for
43 and 15 percent of total organic sales in 2012; their standing has been relatively unchanged in recent years. Packaged foods, beverages (including soymilk), and breads/grains have 9-11 percent market shares, down slightly from a decade ago. The meat, fish, and poultry category, which is dominated by poultry sales, gained the most over the last decade but still represents just 3 percent of total organic sales.

U.S. Certified Organic Acreage Rebounded in 2011
USDA set a uniform organic standard in 2000 to provide consumer assurance, and farmers with organic sales over $5,000 in a given year must obtain independent…...

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