Growing Faster Than the Conventional Food and Non-Food Markets According to the Organic Trade Association’s 2018 Organic Industry Survey, total organic sales increased 6.4% during 2017 to a new record of $49.4 billion and almost $3.5 billion in new sales. Of the total organic market, 91.5% is the organic food sector, totaling $45.2 billion during 2017, also a 6.4% increase. The organic food market accounts for 5.5% of all food items sold in US retail channels. Produce was the top organic food category, at $16.5 billion, +5.3%; followed by organic dairy and egg, $6.5 billion, +0.9%; and organic beverages, $5.9 billion, +10.5%.

Top of the Harvest Nielsen reports organic products are now found in all major grocery channels: warehouse clubs, 27%; premier natural and fresh, 26%; conventional grocery, 21%; mass supermarkets, 18%; and discount grocery, 7% (52 weeks ending 7/29/17). Organic claims are important to 29% of US respondents according to a Nielsen survey, with deli having the largest increase from mid-2016 to mid- 2017, or 31%; followed by grocery, 13%; meat and produce, 10% each; and frozen and dairy, 6% each. Although many organic food products cost more than their non-organic equivalents, Nielsen research found a sample private-label organic grocery basket of 8 items (food and non-food) cost 18% less than a branded organic grocery basket.

Organic Produce Is the Winner According to Progressive Grocer’s 2017 Retail Produce & Floral Review, 70.8% of survey respondents said their sales of organic produce increased during 2017 compared to 2016, with 28.1% saying sales stayed the same and 1.1% reporting a decrease. Nielsen and the Organic Produce Network reported $1.2 billion in total Q1 2018 organic produce sales, with organic fresh vegetables at $632 million, compared to $400 million for organic fruit. The Nielsen data also revealed that 80% of all organic produce sales were UPC (universal product code) items, such as packaged salads and berries, while conventionally grown produce items accounted for 57%.

The Increasing Wave of Organic Consumers According to data from Packaged Facts and Simmons Research, almost 30% of grocery shoppers are consciously seeking organic or natural foods, increasing 5% during the 2010–2017 period. Based on the Simmons data and other information in this Profiler, the largest percentage of US households purchased organic produce during 2017: fruit, 34%, and vegetables, 31%. In addition, almost 30% of households purchased organic eggs, 15% organic milk. The latest data (fall 2016) from Acosta revealed approximately 34% of the grocery items in Latino Americans’ shopping cart were organic compared to approximately 25% for all US shoppers’ carts.

Identifying Healthy Shopper Types Research from New Hope Network identified 5 groups of consumers based on their healthy- products shopping. The top two are Well Beings, most health proactive, 26%, and Fence Sitters, who want to be healthy, but not always, 23%. The other 3 groups are Magic Bullet, a lower commitment to a healthy lifestyle, 20%; Food Actives, mainstream healthy and self-motivated to be healthier, 14%; and Eat, Drink, Be Merry, least health active, 17%. Millennials are 49% and Baby Boomers are 34% of the Well Beings group; however, Baby Boomers are the largest spenders. Price is not a large concern with Well Beings, but they are brand loyal and typically early adopters of new products.

Organic Farming According to the latest data (2016) from the US Department of Agriculture, there were 14,217 certified organic farms in the US, with the top 5 states: California, 2,713; Wisconsin, 1,276; New York, 1,059; Pennsylvania, 803; and Iowa, 732. The total value of certified organic acres in operation was $7.55 billion, with crops, including nurseries and greenhouses, $4.19 billion; livestock and poultry, $1.16 billion; and livestock and poultry products, $2.20 billion. The value of the sales of all certified organic vegetables grown in the US was $1.64 billion, with California first, at $1.05 billion; followed by Oregon, $104.37 million; Washington, $98.84 million; Arizona, $80.13 million; and Florida, $46.43 million.

Advertising Strategies Organic products, especially produce and locally sourced, is a potential marketing advantage for local independent, natural-food chains. Suggest these stores designate an employee as its “weekend organic concierge,” assisting shoppers with healthier choices. Independent, organic-food stores may also want to consider an “Introduce a Friend to Organics” promotion. Stores can offer a discount when two or more people shop together and each purchase a qualifying basket of organic products. Many younger adults are known for their adventurous eating, so order a number of exotic, unusual produce or other organic food items, create a special display and offer a bundle of samples at a discounted price for one weekend each month during the summer.

New Media Strategies Suggest independent, local organic-food stores place ads on your Website’s weather page, promoting products in relation to the weather forecast: produce high in antioxidants during cold weather months, organic skin products during the hot summer, etc. In conjunction with the promotion to introduce younger adults to a special bundle of exotic, unusual produce or other organic food items, share photos on Instagram and Snapchat, including recipes to prepare these items. Independent organic-food stores should consider promoting the cultured meat trend featured on page 4 of the Profiler. Conduct your own survey on your Website and social media and offer a special discount for trying cultured meat with social media feedback.