Organic farming has been a hot topic in recent years, with more and more consumers looking for organic options at their local supermarkets. But just how much is organic farming growing year to year? Is it anywhere near half of all farming in the United States or globally? Let’s dive into the data to find out.
According to data from producer organizations and the USDA, organic sales have been steadily increasing over the years. In 2022, organic food sales reached $60 billion in the United States. While this number may seem impressive on its own, it pales in comparison to total food sales, which were $1.05 trillion for food consumed at home and $1.35 trillion for food away from home.
When we compare organic sales to total food sales, organic products make up only a small percentage of the overall market. Depending on how you measure it, the organic share of the food market ranges from 2.5% to 6% in the United States. Globally, organic sales are roughly $133 billion, but total global food sales are three times larger, resulting in organic products accounting for less than 2% of the market.
The growth of organic farming is undoubtedly positive, but it still has a long way to go before it can comprise half of all food consumption. One of the challenges organic farming faces is the difficulty of producing certain foods organically. While the produce segment has been the most successful, not all plants are well-suited for organic production.
In the dairy and meat sectors, organic production comes with its own set of challenges. Organic dairy production, for example, requires adhering to strict rules regarding organic feed, housing, ration, medicine restrictions, and more. Similarly, organic meat production faces hurdles, with sourcing organic feed components, especially meeting non-GMO standards for corn, proving to be a challenge.
Moreover, the inflation has made consumers more price-sensitive, and organic production generally entails higher prices to offset the increased costs. As a result, the growth of the U.S. organic market has been partially supported by imports, particularly of fruits. It’s unlikely that the organic market share will significantly increase in the near future due to these production challenges and the lack of concrete evidence of organic benefits for consumers.
Despite the challenges facing organic farming, there is still significant potential for growth in the market. As consumers become more conscious of their food choices and the impact they have on the environment, there is a growing demand for organic products. However, the industry will need to overcome production challenges and effectively communicate the benefits of organic farming to consumers to drive further growth.
In conclusion, organic farming has experienced steady growth in recent years, but it still represents only a small percentage of total food sales in the United States and globally. While the potential for organic farming is significant, there are challenges that need to be addressed to further increase market share. By educating consumers about the benefits of organic products and working to overcome production hurdles, the organic farming industry can continue to grow and meet the evolving demands of consumers.
