While many U.S. shoppers have become more selective in their grocery spending, the organic segment has continued to show resilience. Growth has been led largely by Millennials and Gen Z, as consumers increasingly make deliberate choices about where they see value in food.
According to the Organic Trade Association, U.S. sales of certified organic products reached $71.6 billion in 2024, rising 5.2% year over year, more than double the 2.5% growth rate of the overall marketplace. During the same period, organic produce was responsible for just over 30% of total sales for the organic food category as a whole.
The Organic Produce Network described 2024 as a “triumphant year” for organic fresh produce, noting that organic sales growth continued to outpace conventional produce.
So what’s driving this positive trend in organic produce? Tom Chapman, co-chief executive of the OTA, sees much of this growth coming from younger generations, citing a recent OTA survey which found that the number of Gen Z respondents rating organic as important to them was 27% higher than that of Baby Boomers. A similar picture was found with Millennials, with both groups responding more positively to paying a premium for organics.
Chapman also highlights the resilience of “committed” organic consumers who have remained loyal to the category despite the challenges. “In these times of inflation, the committed organic consumers stay committed,” he says. “They find other ways to prioritize their purchasing, but they remain committed to the category.”
In a similar vein, Chapman says the survey indicated “aspirational” organic shoppers were moving away from more indulgent experiences and instead prioritizing healthy eating, and therefore organic.
In the opinion of Jessy Beckett Parr, chief program officer at California Certified Organic Farmers (CCOF) — a Santa Cruz, CA-headquartered organization that supports organic growers in the U.S., Mexico, and Canada — the growth of the organic market is being driven by an increased desire for cleaner ingredients as consumers prioritize health and wellness.
Beckett Parr expects organic sales in the U.S. to continue to grow over the next five years, but argues that it’s imperative the domestic market focuses on U.S.-produced organic fruits and vegetables rather than imports.
“According to the USDA Economic Research Service, over the last 13 years an increasing amount of organic market growth has come from additional imports into the U.S.,” she says. “It is time to reverse that trend and ensure that domestic organic producers enjoy their fair share of market growth.”
Active since 1984, Mount Vernon, WA-based Viva Tierra Organic has long had organic apples and pears as its core business, but recent years have seen the company expanding into organic ginger from Peru, building out a year-round organic kiwifruit program from Italy, Greece and Chile, and adding other seasonal organic programs to include citrus, hard squash, pitaya and more.
Business development and marketing manager Chris Ford says organic demand is continuing to grow, not just in fresh produce, but also in ingredients and juices. “Those are great for the growers because it utilizes the whole tree,” he says.
Ford is also optimistic about the outlook for the sector. “I’ve been in the organic trade for 30 years now and it has grown every year, I don’t see any stopping of that,” he says. In fact, Ford thinks increasing awareness of the negative impacts of consuming ultra-processed foods is providing a great opportunity to grow the organic market, especially among younger shoppers.
“Millennials and Gen Z really crave transparency about where their food comes from, so not only are they demanding that, but also technology enables us to be able to tell the story,” says Ford. “It’s really a watershed moment for the natural foods industry in a lot of ways to be able to use all those tools to educate shoppers about the benefits of seeking out organic and more wholesome, nutritious foods, and at the same time learning about the dangers of ultra-processed foods.”
The Inflation Factor
Owned by Taylor Farms, Salinas, CA-based Earthbound Farm is North America’s largest farmer and producer of organic fresh vegetables and the leading national brand in organic salads. The company recently expanded its range to include Chopped Spinach and Big Leaf Spinach, as well as a new addition to its specialty variety line, the Beet Greens blend.
Jenny Panziera, director of product for organic salads and the Earthbound Farm brand, says the company has benefited from a commitment to quality, innovation, food safety, and sustainability, factors that are winning favor with shoppers. “As more and more consumers turn to functional health and prioritizing whole, healthy fresh foods, we anticipate the organic category to steadily increase,” she says.
At the same time, Panziera admits organic isn’t immune to the impact that tight margins and inflation are having on food and agriculture, describing shoppers as being “more price elastic” when it comes to organic salads.
However, she says conventional retail is being more affected by pressure on units and volume caused by switching and contraction than natural or specialty retailers. “Consumers are more intentional and selective with their organic purchases, increasing the need for differentiated offerings, clear benefits and strong promotional support,” adds Panziera.
Further south in Porterville, CA, Homegrown Organic Farms offers full lines of organic citrus, stonefruit, and berries, as well as fall fruit items, including pomegranates and persimmons.
The company also has an established fig program, introduced last season on a conventional basis and now transitioning to organic certification.
The company’s chief executive, Scott Mabs, is likewise cautiously optimistic about prospects for organic produce. “The growth has slowed from what it was a decade ago because it’s a maturing market,” he says. “There is still growth happening, but at a slower rate.”
While Mabs expects the trend to continue, he notes inflationary pressure is causing potential crossover organic shoppers to shy away from buying organic.
That said, he also thinks more and more people are recognizing that “the food you eat has a lot of value” from the point of view of both personal health and caring for the environment.
Beckett Parr at the CCOF says that, unlike the volatility seen in conventional commodities, organic prices have remained relatively steady, establishing certainty. This has improved predictability for growers, retailers, and buyers alike.
“According to the most recent industry sales data from OTA, the gap between conventional and organic prices shrank in 2024 as conventional suppliers more readily raised prices for consumers,” she says.
“This bodes well for existing organic producers as more consumers turn to organic when faced with premium prices for non-organic foods.”
Ford at Viva Tierra emphasizes that, although consumers are undoubtedly under price pressure, value means different things to different people.
“Cheap has a hidden cost and organic food should not be cheaper or the same as conventional because it costs more to grow,” he notes.
Instead, he says organic has benefited from both education and initiatives to offer more organic produce in schools.
A strong player on the imports side of the organics business is Organics Unlimited, a San Diego-based company which imports organic bananas and papayas — among other products — through its “growers-first” model built on long-term partnerships in Mexico and Ecuador.
President and Chief Executive Mayra Velazquez de Leon says that despite inflation making shoppers more deliberate in their choices, growth continues and the sector remains resilient. “What we see is that consumers continue to prioritize organic in categories where the price gap is smaller and the value is clear — a spot where bananas shine,” she says.
Areas of Opportunity
To make organic more competitive, Chapman says the OTA is trying to reduce barriers, increase value, and educate the consumer — “all those areas have opportunities for us.”
However, he notes for many producers and consumers, organic availability remains a top concern. Another is the challenge of better educating consumers about organic.
“Consumers get bombarded a lot with different messages, whether premium, natural, regenerative, or non-GMO,” he explains. “All these terms will have consumers transferring to other products, assuming they deliver chemical-free, soil-health, and biodiversity benefits, even though they may not meet organic standards.”
For this reason, Chapman says the OTA has launched the ‘Seal Makes it Simple’ campaign in cooperation with several retailers, which is designed to make it easy for shoppers to distinguish genuine organic produce from products that make a variety of health and sustainability claims by focusing on the USDA Organic seal.
Velazquez de Leon at Organics Unlimited agrees that greater competitiveness can be achieved by pairing reliable supply with clear communication of the value behind the organic seal. “Customers want to understand how organic is the healthy choice for our families, our environment, and our communities,” she says.
Mabs at Homegrown echoes the sentiment: “I still think there’s a lot of confusion and a lot of misunderstanding about organic. I think funding some sort of large-scale marketing program around organic would go a long way.”
The CCOF also advocates for expanding markets for domestic organic producers through educating consumers; one example is a national advertising campaign that the organization is currently running on Roku TV, focusing on organic farmers and how organic produce benefits health and local communities. Other education-focused marketing campaigns are being lined up for Mexico and Japan.
Beckett Parr says a key advantage of organic production is its resilience to climate stress, arguing that organic adoption can improve farm adaptability to extreme weather conditions such as drought or hurricanes by supporting healthy soils and maintaining robust levels of biodiversity.
“Because organically farmed soils tend to be higher in soil organic matter than conventionally farmed soils, they maintain soil structure under rain or wind, preventing topsoil and nutrients from eroding during heavy rains,” she explains.
“Enhanced biodiversity also helps farms be more resilient by supporting diverse species that can handle various environmental shocks. Due to these benefits of organic production, organic agriculture is well positioned to face climate uncertainties, support corporate ESG goals, and meet consumer expectations for sustainable agriculture.”
According to Mabs at Homegrown, it is going to be critical for organic producers to continue to implement genetics into their programs to ensure both consistent quality, and to help the sector compete effectively with conventional.
“In the end, the product has to taste great, it has to be something consumers enjoy, and genetics plays a big role in that,” he says. “Organic has to stay on par with conventional in the quality of the product that’s provided to the consumer. If it doesn’t, a lot of consumers will choose the items that taste better. So that’s why we’re continuing to look at what’s next within the area of genetics and what varietals are next.”
Mabs also sees a benefit for organic as GMOs become more prevalent on the conventional side, despite resistance to the concept. “We have to continue to look at new ways we can farm that bring life back into the soil and are going to be better for the next generation that farms it,” he adds.
For the sector as a whole, Chapman at the OTA argues large-scale investment in research and new technologies is essential if “specific barriers” for organic growers are to be overcome, namely, ways of controlling labor costs, and effective weed and pest management.
With organic banana producers facing devastating diseases such as TR4, Velazquez de Leon says the industry needs to continue to evolve its practices and explore natural solutions to overcome these challenges. “Organic production does not fight with disease; we control it and live with it,” she says. “By engaging in practices that make the soil healthier and stronger, it sets a strong base for improving yields, consistency, and quality.”
The Outlook for Organic
Looking ahead, Chapman says the number one challenge that the sector continues to have is labor, which he places above genetics and biological inputs as a cause for concern. One solution could be robotics, which, according to Chapman, is increasingly being used in the field and has the potential to lower costs for producers, although questions remain about the technology’s effectiveness for smaller as well as larger growers.
Another cause for optimism is the positive progress being made by the Domestic Investment Organic Act, a proposed piece of new legislation that was introduced in December 2025, and has attracted cross-party support in the Senate and the House. The bill proposes to boost organic infrastructure across the U.S. by offering USDA grants to farmers and growers to improve storage, distribution, and fill any existing supply chain gaps. “We’re very excited by that one and hope to see it included in the Farm Bill,” says Chapman.
“As we look to the future, we see it really bright,” he adds. “Organic is still on its growth trajectory and it has not yet reached maturity.”
According to Velazquez de Leon, organic demand in the United States is expected to keep growing steadily over the next five years and continue to outperform conventional food. “The next five years will reward companies who can deliver not only organic but an additional layer of social responsibility that speaks to consumers’ expectations around ethical sourcing, community investment, and measurable social impact,” she says.
Panziera at Earthbound Farm says premiumization with strong differentiation will continue to be an important driver for organics, while she predicts sustainability and regenerative concerns will also emerge as purchase drivers.
“Freshness will be paramount with consumers seeking more insight into where their food is grown and by whom,” notes Panziera. “Practical solutions focused on functional health, convenience and right-sized offerings will increase and contribute to steady growth.”
“Most people don’t know what’s on their produce,” says Ford at Viva Tierra. “There’s a whole industry that’s built on chemical washes, waxes and fungicides — that whole industry exists to maintain appearances, but not actual freshness. It’s just another message that we want to continue to amplify, putting a spotlight on why organic is better for people and better for the planet.”