Demand for Organic Produce Continues to Grow

The organic produce segment is growing faster than conventional produce.

The market for organic produce is booming, with consumers looking for convenience and diverse options among organic fruits and vegetables. Health concerns and affordable pricing are driving sales among consistent organic shoppers, while converting conventional produce consumers to try organic produce.

“Organic produce remains a growing segment of the produce department,” says Cassie Howard, senior director of category management and marketing at Sunkist Growers Inc., Valencia, CA. “We continue to see new shoppers enter the organic category, and our research shows that as consumers learn more about organic offerings, they are willing to try unfamiliar choices.”

Having a variety of organic produce available to consumers year-round is essential in order to meet the demands of today’s shopper. “Grapes, potatoes, ginger root and bananas are becoming more popular across the organic fresh produce sector,” says Alex Jackson, vice president of sales and marketing, Frieda’s Inc., Anaheim, CA.

“For example, we are experiencing a surge in popularity for our organic Stokes Purple sweet potatoes and Mighty Gold turmeric,” Jackson adds. “These eye-catching and flavorful options are turning produce aisles into destinations for health-conscious and adventurous consumers alike.”

Organic avocados are also popular for their health benefits, taste, versatility and availability. “Organic avocados are a top seller that deserve the spotlight in the department because they are versatile, consumers love them, and are in demand 52 weeks a year,” states Peter Shore, vice president, product management, Calavo Growers, Santa Paula, CA.

HEALTHY SNACKS, EASY LUNCHES

Snacking produce is also growing in popularity among consumers. “The trend is notable within organic tomatoes, including vibrant medleys, cherry tomatoes on the vine, and high flavor greenhouse-grown grape tomatoes,” states Joanna Jaramillo, marketing manager at Wholesum Family Farms in Amado, AZ. “Organic cucumbers, particularly minis, are also surpassing all other subcategories in sales growth.”

Organic citrus, as well as organic apples and pears, make it easy to eat healthy as part of workday lunches, school lunches and snacking. “Organic Honeycrisp apples are selling extremely well, as are SugarBee, Aura and Opal. And there’s new varieties gaining popularity, such as new red flesh Lucy and Kissabel apples,” says Myles Chasser, fruit buyer for Four Seasons Produce Company in Ephrata, PA.

Organic produce that is grab-and-go is also a popular choice for shoppers. “The organic packaged salad segment is doing extremely well for us right now and seems to be growing at a higher rate than the rest of the organic produce department,” says Justin Rowe, produce category business manager, Northeast Shared Services Inc., Buffalo, NY, which supports the Price Chopper, Market 32 and Tops Friendly Markets banners.

“Organic juices are also doing well, as many customers are looking for a healthier alternative to traditional sodas and juices,” he adds.

BUMPS IN THE ORGANIC ROAD

On the flip side are those organic produce that have seen a decrease in sales. These include berry varieties, such as blueberries and strawberries. “I don’t believe it’s because of lack of demand,” says Rowe. “It’s more of a supply issue. Getting quality organic strawberries from Florida to the Northeast on a consistent basis, for example, has been difficult lately because supply is lacking. We have started to turn to greenhouse-grown organic products to fill the gap, but the cost is much higher.”

Organic iceberg lettuce is another product that has fallen in popularity, due to the perception that it lacks the nutrients found in leafy greens. Some apple varieties, such as Golden and Red Delicious, are also difficult to find on the organic front, due to growers swapping out old varieties for new varieties. The same is true for organic pears, with the exception of the organic Bartlett pear, which continues to be popular.

“Variety overload could be the culprit. Too many options can leave shoppers dazed,” states Jackson of Frieda’s.

WHO’S BUYING

The organic shopper has diversified over the last decade. “Organic shoppers who are looking to improve their health and lifestyle often see this as a reason to purchase,” says Howard of Sunkist Growers.

This is particularly true among younger, more health-conscious consumers. “Millennials and younger Generation X shoppers remain the core demographic driving demand for organic fruits and vegetables, often motivated by lifestyle changes,” says Jackson. “Meanwhile, Gen Z has increasingly embraced organic selections, signaling a promising future for the category.”

As Gen X shoppers age, food purchases are made based on health. Millennials with families perceive organic produce as a healthier priority for their children. Gen Z views organics from both a health and a sustainability perspective and tends to be more adventurous when planning their meals. All perceive organic options as more nutritious and cleaner, and those with higher incomes and higher education levels are more willing to pay slightly more for organic produce.

“Millennials and younger Generation X shoppers remain the core demographic driving demand for organic fruits and vegetables.”
— Alex Jackson, Frieda’s Inc., Anaheim, CA

This bodes well for the organic food market. “According to Statista 2024, organic produce in the U.S. has grown steadily between 2013 and 2023. The market sales value has increased by over $30 billion and consumer awareness of organic products has risen significantly. In fact, almost 90% of Americans are familiar with organic claims,” says Howard.

Growth in sales of organic produce varies, depending on geographical locations. “Geographic areas that trend toward higher organic produce sales often include regions like the western and southern U.S., where organic growth and market penetration are particularly strong,” says Wholesum’s Jaramillo.

Howard agrees. “Organic citrus has performed well across the U.S. Over the last year, we have seen the most significant retail growth in California, followed by the Plains and Northeast. However, compared to four years ago, the Mid-South and West regions have seen the fastest growth in organic citrus.”

PUSHING RETAIL SALES

Natural food stores were once the primary places to purchase organic produce, but this has been surpassed by grocery retailers. In fact, according to Organic Agriculture, 55% of organic produce sales in 2021 were purchased at retail stores.

“Grocery retailers are changing the game in organics, as it is now becoming a key aspect of their strategy, ramping up their organic offerings, and introducing their own organic private labels,” explains Jaramillo.

How to promote organic produce at the retail level and whether or not to place organic fruits and vegetables alongside conventional produce or separately are decisions that must be looked at from all angles.

“We tend to promote an organic option along with its conventional partner. If we have broccoli crowns in an ad, we will make sure to have organic crowns promoted with it at a comparable retail,” says Rowe of Northeast Shared Services. “This gives the experienced organic shopper a deal on an item they were looking for, while giving the conventional shopper the chance to try an organic option.”

Sunkist research shows that most citrus shoppers purchase organic citrus “when it is the best value for them on that shopping trip,” says Howard. “Many shoppers make their purchase decisions based on promotion, price and the look/feel of fruit, lending opportunities for retailers to display their organic and conventional citrus side-by-side to persuade purchases easily.”

New Seasons Market, Portland, OR, finds that displaying organic produce and conventional produce separately or together are both effective strategies. “We often integrate organic produce with our conventional offerings, ensuring that organic selections are highly visible and well-signed, but sometimes they are also grouped together to create a dedicated organic section,” says Chris Harris, category director, produce and floral. “This helps customers who prefer to shop solely for organic items without having to search through the entire department, while at the same time introducing conventional produce shoppers to organic alternatives.”

Consistency is important in placement, however. “We are creatures of habits, and we like to find things where we remember where they were. The exception here would be temporary seasonal displays, which are more intentional and visible and are used to highlight organics during specific times of the year,” says Jaramillo.

If organic and conventional produce are displayed together, it is critical to follow all organic standards, Harris emphasizes. “Don’t display conventional items above organic, have a firm barrier between organic and conventional produce to avoid co-mingling, and have clear labeling of organic versus conventional produce to avoid customer confusion.”

SIGN THEM UP

Well-placed signage and targeted promotions can also help consumers find organic produce at their stores.

“Whatever the choice, vivid signage and storytelling keep customers engaged and informed. In fact, retailers can elevate organic sales by telling their story — think sustainability, farm-to-table connections, and health benefits,” adds Jackson of Frieda’s Inc. “And clear USDA Organic labels, seasonal highlights, and creative set-ups boost appeal. Sampling and cross-promotions, such as pairing dragon fruit with smoothie recipes, captivate both loyal fans and curious newcomers.”

Howard of Sunkist agrees. “Featuring a prominent display area with clear signage helps to educate consumers about the benefits of organics. Include in-store materials and special promotions or discounts that can encourage purchases.”

Harris believes signage should highlight the grower and any key attributes, like organic designation. “We often sample from local producers so that they have the opportunity to tell their stories. We find that this connection helps drive interest in organic options.”

“Organic produce should be handled just the same way as every other category or commodity. When it’s in season and the quality is right, you should have it front and center. Produce is anything but stagnant,” says Rowe, Northeast Shared Services.