June 2005
VOLUME 15, NUMBER 6

 

OTA Survey: U.S. Organic Sales Reach $10.8 billion
What’s News in Organic
Information Flier - A Publication of the Organic Trade Association
Summer 2004, Issue 28

Sales of U.S. organic food and non-food items grew by approximately 20 percent during 2003 to reach $10.8 billion, according to the Organic Trade Associations 2004 Manufacturer Survey.

Survey results showed sales of organic foods were approximately $10.38 billion in 2003, up 20.4 percent from 2002. Meanwhile, “non-food” organic products, such as personal care products, nutritional supplements, organic fiber, household cleaners, flowers and pet food, grew by 19.8 percent, to reach $440 million in sales.

Organic food sales now represent approximately 2 percent of U.S. food sales. Experiencing approximately 20 percent sales growth in 2003, organic fruits and vegetables represented about 42 percent of organic food sales. Meanwhile, the category of organic meat, poultry and fish represented only 1 percent of organic food sales but experienced the largest spurt, growing by nearly 78 percent.

According to survey results approximately 44 percent of organic food sales were sold at supermarkets and grocery stores, mass merchandisers and club stores. The natural food channel, including independent natural product and health food stores as well as natural grocery chains, accounted for 47 percent of sales.

The remaining 9 percent occured at farmer’s market, through food service (such as restaurants), exports, and other non-retail store sales.

Based on the growth in organic sales from 1991 through 2003, results forecast an annual average growth rate of 18 percent for organic foods from 2004 - 2008. The meat, fish and poultry category, with 30.7 percent anticipated growth, is expected to have the highest growth rate, followed by fruit and vegetables, at 20.7 percent growth.


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