US: Organic food sales grow 5 percent, top $24 billion in 2009

Even in a recession, organic products are in demand. U.S. sales of organic products increased 5.3 percent to top $26.6 billion during 2009, according to the Organic Trade Association's (OTA) "2010 Organic Industry Survey."

According to the OTA report released April 22, $24.8 billion represented organic food while the remaining $1.8 billion were sales of organic nonfoods.

"While total U.S. food sales grew by only 1.6 percent in 2009, organic food sales grew by 5.1 percent. Meanwhile, organic nonfood sales grew by 9.1 percent, as opposed to total nonfood sales, which had a 1 percent negative sales growth rate. These findings are indicative that even in tough times, consumers understand the benefits that organic products offer and will make other cuts before they give up products they value," said Christine Bushway, OTA's executive director.

Experiencing the most growth, organic fruits and vegetables, which represent 38 percent of total organic food sales, reached nearly $9.5 billion in sales in 2009, up 11.4 percent from 2008 sales. Most notable, organic fruits and vegetables now represent 11.4 percent of all U.S. fruit and vegetable sales.

Since the approval of the final National Organic Program rule published in 2000, sales of organic fruits and vegetables have grown from $2.55 billion, representing approximately 3 percent of all fruit and vegetable sales, to the nearly $9.5 billion level and 11.4 percent penetration level. Meanwhile, during that time, organic food sales have grown from $6.1 billion to $24.8 billion in 2009, jumping from 1.2 percent of all U.S. food sales to 3.7 percent.

The mass-market channel had the lion's share of organic food sales in 2009, with 54 percent of organic food sold through mainstream grocers, club stores and retailers. Natural retailers were next, with 38 percent of total organic food sales. Although still representing a small percentage of sales, farmers' markets, co-ops and CSA (community-supported agriculture) operations gained a lot of interest as consumers increasingly look for locally and regionally produced organic foods.

In the organic nonfood sector, organic supplements led, with $634 million in sales, representing 35 percent of total organic nonfood sales. Organic supplement sales were 12 percent higher than in 2008. Organic fiber (linen and clothing) totaled $521 million in sales, up 10.4 per