WASHINGTON, D.C., April 23, 2025 (GLOBE NEWSWIRE) -- U.S. sales of certified organic products accelerated in 2024 with an annual growth rate of 5.2%, more than double that of the overall marketplace which grew at 2.5% in the same period. Dollar sales for organic also reached a new high of $71.6 billon in 2024, according to the 2025 Organic Market Report released today by the Organic Trade Association (OTA).
After two years of managing high inflationary pressure and significant supply chain recalibration coming out of COVID, the organic marketplace hit a new growth stride in 2024 with organic food sales totaling $65.4 billion and sales of organic non-food products totaling $6.2 billion.
“When we look at the last two years, this is very good news that we are on the right trajectory with organic growing more than twice as fast as the total market,” says Tom Chapman, Co-CEO Organic Trade Association. “While we have significant opportunities to drive organic’s share of the total market, we are seeing increased consumer adoption of organic and a positive return to industry growth which are very good signs.”
A key trend influencing the growth of organic sales continues to be an increased desire for cleaner ingredients as consumers prioritize health and wellness for themselves and their families. This encompasses looking for “free from” foods and products, such as “free-from” chemicals, toxins and pesticides, hormones and antibiotics, dyes and unnecessary additives, as well as seeking out the USDA Organic seal.
In 2024, shoppers found that the gap between conventional and organic prices across categories including grocery and dairy had shrunk, making them more open to considering and purchasing organic. This includes an increase in organic purchases at mainstream grocery retailers where shoppers tend to be more price sensitive.
Top organic sellers by food category:
- At $21.5 billion, organic produce held its top spot as the standout category, continuing to be the primary entry point for consumers into the organic market. In 2024, the category accounted for 30.1% of total organic sales with a growth rate of 5.2% for the year. Berries remain the star of the organic produce category, with sales rising another 10.3% in 2024. Bananas also had a particularly strong year, with sales climbing 15.5%. New apple varieties, and tropical fruits, such as mangoes, kiwi, and pineapples, continued to gain momentum.
Not all produce categories performed as well, however. Organic packaged salad sales declined 4.5%, and lettuce and other greens also showed little momentum with a modest sales increase of only 0.8%. - The second biggest-selling organic food category was the grocery category, posting sales of $15 billion in 2024, achieving 4% overall growth. Bakery and fresh breads, the largest category, grew by 2.8%, driven by interest in artisanal products like sourdough. Dry breakfast goods, the third-largest category, rose by 8.1% as consumers sought better-for-you options that align with family dietary goals. Baby food and formula is the second-largest organic grocery segment at $1.6 billion and experienced a 3.8% sales increase in 2024 but was limited by supply and capacity constraints.
Consumers continued to show interest in cooking restaurant-quality meals at home. This trend, coupled with the perception of food as medicine, has driven demand for high-quality organic grocery ingredients. Younger consumers, particularly Millennials and Gen Z, are also helping shape grocery sales trends by balancing health-conscious choices with quality and indulgence. - As the third largest segment, beverages are often cited as the organic category with the most innovation, and 2024 was no exception. Sales in the organic beverage market grew 5.2% to $9.5 billion, with new formulations following consumer trends in wellness and rising interest in low-sugar formulations with functional and sustainable ingredients. With ingredients like ashwagandha and mushrooms, low-sugar drinks, kombuchas, sports drinks, non-alcoholic offerings, and protein-enriched smoothies all on the shelf, this category is expected to cross the $10 billion mark in 2025.
Beverage segments with the highest growth encompassed dairy alternatives (13.5%), tea (10.5%), and spirits, liquor & cocktails (10%). Although dairy alternatives recorded the highest growth rate (13.5%) across beverage categories, with just $850 million in sales remains far behind organic milk’s $3.9 billion watermark. - In the fourth category, organic dairy and egg sales rose by an impressive 7.7% to $8.5 billion in 2024. Organic yogurt, the second largest category in this segment, grew 10.5% - the second highest growth rate in the category in more than 15 years - while organic egg sales rose 16.1%. This growth is in part due to the Avian Influenza that has hit egg producers across the country, causing all egg prices to surge while leaving bare grocery shelves.
The growth in organic dairy and eggs reflects a strong consumer desire for clean ingredients and nutrient-dense products. Organic dairy and eggs align with the health-conscious trend, providing high-quality, clean protein options that resonate with shoppers, even when priced at a premium.
Non-food categories:
In the non-food categories, as consumers learn more about the effects of pesticides and toxins in their food, they are taking a second look at organic textiles, personal care, and dietary supplements, too. Although these categories face strong competition from “natural” and “green-ish” products, they each saw modest growth in 2024, with textiles growing at a rate of 7.4% to reach $2.5 billion. Personal care and dietary supplements specifically have been elevated by social media and influencers, with many companies gaining traction from direct-to-consumer sales.
Organic remains a stand-out in a growing sea of labels
While the number of claims and labels continued to expand in the retail aisles in 2024, including growth of regenerative, the USDA Organic seal remained a constant source of trust and confidence with consumers. The research shows younger generations have an increased interest in transparency and sustainability-minded brands and consider the impact of production on both planet and people. Yet, research also shows that while consumers value all the attributes in organic, more education and visibility on organic attributes would help new consumers make the connection to all that USDA organic certification stands for.
“The key takeaway is that organic has high consumer recognition and the highest level of trust in a certification,” says Matthew Dillon, co-CEO of Organic Trade Association. “To help increase adoption of organic, we need to enhance our consumer education that could be strengthened by adding product attributes to the USDA Organic logo, such as an organic dairy company being able to call out ‘no growth hormones’ or ‘no antibiotics’ as part of the Organic seal on their packaging.”
This type of attribute-focused marketing, Dillon notes, is the next step in growing consumer awareness and expanding the organic market overall and is a priority for OTA’s advocacy efforts on behalf of its members and the industry at large.
Looking ahead
The long-term outlook projects a similar compound annual growth rate for organic at 5.1% through 2029, adding $18 billion in sales by the end of the decade. Strong interest in organic among younger generations with growing purchasing power, rising demand for healthier food, increased discretionary income from GLP-1 medications, and momentum from the “Make America Healthy Again” movement all point to positive trends. However, new opportunities for growth may be offset by emerging challenges with potential inflation from tariffs and labor shortages posing significant headwinds to overcome.
Methodology: Data compilation and industry model
The organic industry model was created using a variety of data sources that reflect sales data for the 2024 calendar year. Survey data was collected from October 31,2024, through February 27, 2025. This year’s report covers an expansion of produce categories as well as a historical restatement of some product categories. Reporting of sales for produce, the largest organic category, now includes fifteen product sub-categories. The historical sales consisting of total industry comparable sales and penetration of organic into overall sales, have been adjusted for several categories to more accurately reflect recent data.
Executive summaries of the 2025 OTA Organic Market Report are available to the media upon request. The report is available in full as a benefit to OTA members. For non-members, the full report can be purchased at OTA.com.
About the Organic Trade Association
The Organic Trade Association (OTA) is the membership-based business association for organic agriculture and products in North America. OTA is the leading voice for the organic trade in the United States, representing organic businesses and producers across the nation. Its members include growers, shippers, processors, certifiers, farmers' associations, distributors, importers, exporters, consultants, brands, retailers, and others. OTA's mission is to promote and protect ORGANIC with a unifying voice that serves and engages its diverse members from farm to marketplace. For more information visit OTA.com.
Attachments
Sandy Pfaff Organic Trade Association spfaff@ota.com
