US Organic Feed Market Research Report: Forecast (2026-2032)

US Organic Feed Market Report Key Takeaways:

• The US Organic Feed Market size is valued at around USD 3.89 billion in 2025 and is projected to reach USD 6.92 billion by 2032. The estimated CAGR from 2026 to 2032 is around 8.58%, indicating strong growth.
• By Source, Cereals & Grains seized 48% share of the US Organic Feed Market size in 2025.
• By Form, Pellets hold 54% market share in 2025 due to their nutritional consistency, reduced feed wastage, and ease of handling and storage.
• The leading Organic Feed Market companies in the US are Cargill, Land O'Lakes, ADM (Archer Daniels Midland), Scratch & Peck Feeds, Green Mountain Feeds, Country Heritage Feeds, Kreamer Feed Inc., Organic Valley, and others.

Market Insights & Analysis: US Organic Feed Market (2026-2032):

The US Organic Feed Market size is valued at around USD 3.89 billion in 2025 and is projected to reach USD 6.92 billion by 2032. Along with this, the market is estimated to grow at a CAGR of around 8.58% during the forecast period, i.e., 2026-32. The US Organic Feed Market is primarily driven by rising consumer preference for organic meat, dairy, and poultry products, which encourages livestock producers to adopt certified organic feeding practices. Federal initiatives such as the USDA’s Organic Transition Initiative (OTI), a USD 300 million multi-agency program supporting producers transitioning to organic systems, also strengthen feed production pathways for livestock farmers, expand organic acreage, and provide technical guidance for organic input sourcing.

According to the USDA Organic Agriculture Situation Report 2025, organic agriculture sales in the United States reached an estimated USD 69.7 billion in 2023, reflecting a strong consumer shift toward organically produced food. This surge in demand drives increased need for organic feed grains, oilseeds, and processed feed products to supply livestock operations compliant with USDA organic standards. Enhanced reporting on organic grains and feedstuffs improves market transparency, supporting more accurate pricing and planning for feed producers.

Overall, USDA cost-share programs and technical assistance for organic certification are expected to lower barriers for new entrants and ease expansion for existing producers. Combined with ongoing consumer demand for chemical-free, sustainably produced animal products, these measures create a favorable growth outlook for the US Organic Feed Market, promoting domestic production and reducing dependence on imported organic feed commodities.

US Organic Feed Market Recent Developments:

• April 2025: Cargill Animal Nutrition introduced Biostrong C-Protect, a new feed additive designed to boost poultry resilience against pathogenic E. coli challenges that can decrease egg production and increase mortality. The product blends a postbiotic (XPC™) with a phytogenic compound to support bird immunity and gut health, helping maintain performance and animal welfare critical for producers focused on antibiotic-free and sustainable feed programs in the US.
• February 2025: Pete & Gerry’s launched a new line of organic, pasture-raised eggs with national distribution, emphasizing outdoor access and certified organic feed for hens. This product launch illustrates growing consumer demand for organic livestock products, which indirectly drives demand for organic feed ingredients in the poultry segment.

US Organic Feed Market Scope:

US Organic Feed Market Drivers:

Rising Demand for Organic & Clean-Label Animal Products

The rising demand for organic and clean-label animal products is a key driver of the US Organic Feed Market because livestock must be fed certified organic feed for their products to qualify as organic. According to the Organic Trade Association’s 2025 Organic Market Report, U.S. sales of certified organic products reached a record USD 71.6 billion in 2024, growing 5.2 % more than twice the growth of the overall food market. Organic dairy and egg sales alone increased 7.7% to USD 8.5 billion in 2024, with egg sales up 16.1% demonstrating strong consumer preference for clean-label animal proteins. Organic meat, poultry, and seafood also saw double-digit growth, further boosting demand for livestock raised on organic feed.

For instance, organic dairy fluid product sales in early 2025, where the USDA’s Agricultural Marketing Service reported total organic milk product sales at 251 million pounds in April 2025, up 0.3 % year-over-year, with organic whole milk sales increasing 7.7% compared to the prior year, indicating sustained consumer demand for organic dairy.

Beyond 2025, USDA programs that expand organic agriculture support, such as increased funding for organic research and extension, as well as technical assistance for producers transitioning to organic systems, are expected to further stimulate organic animal product availability and consumer demand. Continued federal investment in organic certification cost-share and promotional initiatives (e.g., organic dairy in schools) will help grow production capacity and demand for organic feed inputs in the coming years.

Overall, as U.S. consumers increasingly choose organic and clean-label animal products backed by strong USDA oversight and rising sales data, producers must expand certified organic feeding practices. This surge in demand for organic animal products will continue to drive growth in the US Organic Feed Market.

US Organic Feed Market Trends:

Technological Advancements in Feed Nutrition Changing Market Dynamics

Technological advancements in feed nutrition are increasingly shaping the US Organic Feed Market as producers seek to improve animal health, feed efficiency, and compliance with USDA organic standards. The USDA’s National Institute of Food and Agriculture (NIFA) has emphasized innovation in organic livestock nutrition through expanded funding for research into microbial feed additives, natural enzymes, and precision nutrition systems. For example, in 2024 alone, USDA-NIFA allocated over USD 50 million to organic agriculture research programs, including projects focused on improving nutrient absorption and gut health in livestock using non-synthetic inputs. These innovations directly support organic feed formulations by replacing conventional additives with biologically derived solutions.

For example, the growing use of microbial and fermentation-based feed ingredients is permitted under USDA organic regulations. The USDA National Organic Program (NOP) confirms that naturally derived probiotics, enzymes, and fermentation products are allowed when synthetic processing aids are excluded, enabling innovation in gut-health-focused feed solutions.

Additionally, USDA-NIFA continues to fund research focused on organic livestock nutrition efficiency, soil-to-feed nutrient optimization, and biologically based inputs under federally supported organic agriculture programs. These initiatives support university-led extension programs that translate research into on-farm feeding improvements, accelerating the adoption of advanced organic feed practices.

Overall, as organic producers face rising input costs and productivity pressures, technology-enabled nutrition solutions are becoming central to feed strategies. Continued federal research support and regulatory clarity will accelerate adoption, strengthening long-term demand for advanced organic feed formulations in the US.

US Organic Feed Market Challenges:

Higher Production & Certification Costs

Higher production and certification costs remain a major challenge for the US Organic Feed Market, limiting scalability and discouraging smaller producers from entering the sector. Organic feed manufacturers rely on certified organic grains such as corn and soybeans, which consistently trade at significant price premiums. The USDA Economic Research Service (ERS) reports that organic feed grains often sell at 1.5 to over 2 times the price of conventional equivalents, reflecting higher production costs, limited acreage, and stricter compliance requirements. These elevated raw-material prices directly raise organic feed formulation costs and reduce margin flexibility for producers.

Certification expenses further intensify cost pressures. According to the USDA Farm Service Agency (FSA), organic producers and handlers must pay application fees, annual inspection fees, and renewal charges that can range from USD 1,000 to over USD 10,000 per year, depending on operation size and complexity. Although the Organic Certification Cost Share Program (OCCSP) reimburses up to 75 % of certification costs, payments are capped at USD 750 per certification category, leaving many producers with significant out-of-pocket expenses.

Additionally, the USDA ERS notes that organic producers face higher operating costs due to restricted input options, reliance on non-synthetic feed supplements, and more complex supply chains, all of which intensify cost volatility.

Overall, persistently higher input and certification costs constrain scalability and discourage new entrants in organic feed production. Unless supply chains expand and cost efficiencies improve, this challenge will continue to restrain broader market penetration despite rising demand.

US Organic Feed Market (2026-32) Segmentation Analysis:

The US Organic Feed Market Report and Forecast 2026-2032 offers a detailed analysis of the market based on the following segments:

Based on Source

• Cereals & Grains
  • Corn
  • Wheat
  • Barley
  • Others (Oats, Sorghum, Rice)
• Oilseeds, Meals & Pulses
• Others

The Cereals & Grains segment, holding a 48% market share, leads the US Organic Feed Market. Cereals and grains, including organic corn, wheat, and barley, remain the most widely used feed ingredients in the US organic feed market due to their high energy content, digestibility, and compliance with USDA organic standards.

USDA Agricultural Marketing Service (AMS) data for January 2025 shows that organic feed corn averaged USD 6.99 per bushel, significantly above conventional corn loan rates of USD 2.20 per bushel, demonstrating a clear premium for organic grains. This premium reflects the additional costs of certified organic production and ensures that livestock fed these grains maintain organic certification. The consistent demand and established supply networks for organic cereals support their central role in poultry and ruminant feed formulations, making cereals and grains the backbone of the organic feed market.

Based on Form

• Pellets
• Powder
• Crumbles
• Mashes
• Others

Pellets form dominates with a 54% market share due to its superior feed efficiency and handling advantages. It provides nutritional consistency, reduced feed wastage, and ease of handling and storage, which are critical advantages for organic livestock producers. Pelletized feed ensures that animals receive a uniform nutrient profile, supporting consistent growth and feed conversion efficiency, especially important for organic production where substitutions are limited. USDA data and extension materials highlight that organic feed in pellet form is widely used across poultry, ruminants, and swine operations, reflecting strong adoption due to operational efficiency and compliance with USDA organic standards. These functional and logistical benefits explain why pelletized feed holds the largest share among feed forms in the US organic feed market.

Gain a Competitive Edge with Our US Organic Feed Market Report 

• US Organic Feed Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
• This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
• US Organic Feed Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

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