With the exponentially rising population and a growing influx of migrants & tourists in the US, its agriculture sector is witnessing substantial pressure to meet the burgeoning requirements and seeking ways to increase the production capacities.
It, in turn, is building health consciousness among the US population about food production methods & ingredients. Hence, with such concerns, more & more people are inclined toward consuming organic food produced without using chemicals.
This food, which includes fruits & vegetables, dairy products & eggs, meats & poultry, & livestock feed, among others, is processed abiding by the standards of organic farming, i.e., prohibiting using several synthetic fertilizers & pesticides, genetic engineering, sewer sludge fertilizers, growth hormones, antibiotics, & artificial ingredients.
The US Organic Food Market is projected to grow at a CAGR of around 5% during the forecast period, i.e., 2022-27. The growth of the market is driven principally by the mounting health concerns of people & growing their inclination toward consuming organic food.
|Study Period||Historical Data: 2017-20|
|Base Year: 2021|
|Forecast Period: 2022-27|
|Region Covered||North East, South, Mid-West, West|
|Key Companies Profiled||Amy's Kitchen, Organic Valley Inc., Danone North America, General Mills, Inc., Hain Celestial Group, Lifeway Foods Inc., Total Produce Plc., MC Cormick & Co|
|Unit Denominations||USD Million/Billion|
In addition, with the exponentially rising population and growing influx of migrants & tourists in the country, the food consumption levels are swiftly escalating across the US, i.e., instigating the agriculture sector to expand its production capabilities to meet the burgeoning food requirements. It, in turn, is playing a crucial role in augmenting the demand & production of organic food and driving the market.
Besides, economic conditions, improving living standards, and changing food preferences of people, coupled with the increasing government focus on strengthening the agriculture sector, are also playing a crucial role in augmenting the growth of the organic food market across the US.
Moreover, the surging inclination of people toward nutrient-rich food to attain a healthy & chemical-free lifestyle and the emerging trend of veganism are other crucial aspects generating lucrative growth opportunities for the leading players to offer organic & nutrient-rich food to the consumers across the US over the forecast years.
Furthermore, the rapidly growing working population with minimal or no time for food preparation is also showing a paradigm shift of people toward organic food for consuming nutrients and, in turn, projecting a significant market growth through 2027.
Impact of Covid-19 on the US Organic Food Market
The emergence of Covid-19 in 2020 had a decelerating impact on most industries across the US, yet the Organic Food Market witnessed an upswing. While the severity of the coronavirus compelled the US government to impose stringent movement restrictions & lockdown to curb the spread of this dreadful disease, the people in the country increasingly demanded organic food owing to their numerous concerns over strengthening immunity.
Besides, since people viewed the probability of virus transmission from packaged food, the demand for organic fruits & vegetables for home preparation rose swiftly amidst the crisis. Additionally, since the majority of the population adopted working from home, it also introduced massive health consciousness among people, which escalated the demand for nutrient-rich & chemical-free food.
Moreover, as the upliftment of restrictions was uncertain, people also projected substantial panic shopping, which put immense pressure on the food industry to increase production capacities and meet the burgeoning food requirements. Although the market observed slight hindrance in the deliveries of organic food across the US due to the severely affected transportation & logistics sector, the leading players in the market managed to suffice the food requirements and sustained their positions in the market.