Market Definition
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.
Market Insights
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.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2017-20 |
| Base Year: 2021 | |
| Forecast Period: 2022-27 | |
| CAGR5 | 5% |
| 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.
Market Segmentation
Based on the Type:
Amongst all, Fruits & Vegetables acquired the largest share in the US Organic Food Market in the previous few years and are all set to prevail its dominance during the forecast period. It owes principally to the changing food preferences due to growing purchasing power & awareness among people about the benefits of consuming organic fruits & vegetables.
Besides, the easy & extensive availability of fruits & vegetables through different sales channels like retail stores, farms, supermarkets, hypermarkets, etc., is also promoting the overall growth of the organic food market in the US. Moreover, the rapidly increasing production of fruits & vegetables without using chemical fertilizers or preservatives is another crucial aspect fueling their demand and contributing to the market expansion.
Based on the Sales Channel:
Here, Online Channels are anticipated to dominate the US Organic Food Market with the largest share during the forecast period. It owes principally to the growing inclination of the US population, especially the younger age group, toward using e-commerce platforms as a primary source for shopping, i.e., propelling the leading market players to adopt online sales channels and expand their reachability across the US.
Besides, with the Covid-19 pandemic in 2020, online sales channels have gained massive popularity, and the same trend is likely in the coming years. Hence, organic food providers are using it as an opportunity to deliver food with services like door-step deliveries while meeting the burgeoning food requirements of the people across the US and, in turn, driving the market through 2027.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The US Organic Food Market is projected to grow at a CAGR of around 5% during 2022-27.
A. Growing health consciousness among people entwined with the burgeoning production of food without using chemicals is the key factor projected to drive the US Organic Food Market through 2027.
A. The key trend in the US Organic Food Market is the rapidly rising working population with no time for food preparation, i.e., increasingly purchasing organic food to procure nutrients.
A. Online sales channel are anticipated to emerge as an area of remunerative opportunities for the leading players in the US Organic Food Market in the coming years.
