Organic Food Sales Outpace Broader Market

Kristen Leigh Painter reported last week at the Minneapolis Star Tribune that, “U.S. organic sales continue to outpace the broader market, surpassing $50 billion for the first time last year, as pesticide-free, non-GMO products take a bigger slice of the total consumer dollars spent every year.

That rate is slowing from earlier this decade, a sign that the organic market is maturing and new types of health and wellness claims are fragmenting consumer spending.

“The annual survey, published Friday by the Organic Trade Association, is primarily composed of organic food sales, but includes a rapidly growing nonfood segment of personal-care products, household goods and pet food.”

“U.S. organic sales pass $50 billion mark for first time,” by Kristen Leigh Painter. The Minneapolis Star Tribune (May 17, 2019).

The Star Tribune article noted that, “Fruits and vegetables remain the largest driver, accounting for more than one-third of all U.S. organic-food sales.

“Organic’s second-largest sector, dairy, struggled in 2018 along with its nonorganic counterpart. Despite diet trends that shifted consumers away from dairy and eggs, organic sales in those categories eked out nearly 1% growth last year with $6.5 billion in sales.”

Ms. Painter added that, “Last year, organic-food sales grew 5.9% compared to 2.3% for total U.S. food sales.”

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