US Organic Food Market, By Product Type (Dairy, Bakery Products, Fruits & Vegetables, Snacks, Meats/Fish & Poultry, Sauce and Condiment, Processed Food, Packaged Food, Others), By Distribution Channel (Online Channels, Offline Channels) Trend Analysis, Competitive Market Share & Forecast, 2017-2027

  • Published Date: January 2022
  • Report ID: BWC1833
  • Available Format: PDF
  • Page: 119

Report Overview

US organic food market is growing at a high rate because of the growing consumer awareness for health and well-being, coupled with stringent government regulation to maintain safety and quality standards in food.

US Organic Food Market- Industry Trends & Forecast Report 2027

US organic food market was worth USD 52.3 billion in 2020 and is further projected to reach USD 95.1 billion by the year 2027, growing at the CAGR of 8.7% in the forecast period. The growth of the market can be attributed to the growing consumer awareness for health and well-being, coupled with stringent government regulation to maintain safety and quality standards in food. Additionally, growing accessibility to organic food and increasing launches of a wide range of organic food products in the region is expected to boost the growth of the US organic food market during the forecast period.

US Organic Food Market

 

Source: BlueWeave Consulting

US Organic Food Market- Overview

Organic food is the type of food produced with the standards and methods of organic farming, which eliminates the use of chemical fertilizers, hormones, and pollutants. Organic food is largely driven by animal and plant wastes and nitrogen-fixing cover crops. Several studies have revealed that organic food may have more nutrients in quantity compared to non-organic foods and thus it is beneficial for health. Additionally, organic foods contain higher levels of micronutrients and antioxidants due to the absence of chemicals, hormones, and other substances.

US Organic Food Market Forecast and Trends

Growth Drivers

Launch of Wide Range of Organic Food Products

With growing potential and demand for organic food in the U.S. market, the companies are launching a wide range of products to cater to consumers’ nutritional needs and tastes and to exploit market opportunities. For instance, Nature Zen USA recently announced the launch of its high-quality organic plant-based protein in the US market. Another brand called Happy Family Organics announced a new pouch line ‘Happy Baby Savory Blends', servings of organic vegetables, especially for 6+ month babies. Thus, the availability of a wide range of products provides lucrative growth opportunities to the U.S. organic food market growth.

Increasing Health Awareness Among Consumers

The increasing health awareness among consumers is emerging as a major driving factor for the U.S. organic food market. In terms of nutrition, organic food contains no more nutrients than conventionally grown food. They do, however, contain fewer chemicals and are beneficial to human health. Furthermore, organic food is fresher since it is free of preservatives and genetically modified organisms (GMOs). Moreover, organic foods can often reduce the symptoms of allergies caused by certain foods, chemicals, or preservatives. Such benefits appeal to health-conscious consumers, boosting its market growth.

Restraints

High Cost of Organic Food Products

Organic food products are more expensive than inorganic ones, limiting their penetration into the mainstream market. Food inflation results from large imports of organic foods into the United States. The yield of organic farming is comparatively low due to the elimination of chemical fertilizers, creating a gap between demand and supply of organic food. Furthermore, the shortage of shipping containers and labor forces influence the price of organic food, thereby acting as a major restraint for the growth of the U.S. organic food market.

Impact of COVID-19 on U.S. Organic Food Market

The US organic food market was initially halted by the sudden outbreak of the COVID-19 pandemic. People resorted to panic buying during the lockdown in anticipation of the perceived disaster. The result was a shortage of goods in convenience stores and supermarkets/hypermarkets. The organic food brands suffered significant losses as a result. The market is predicted to thrive in the post-COVID-19 period due to increased awareness of the necessity to protect oneself from COVID-19. Moreover, growing consciousness about sustainability and the damaging effects of chemical substances used in agriculture will spur the growth of organic farming, providing lucrative growth opportunities for the U.S. organic food market.

US Organic Food Market - By Product Type

Based on product types, the U.S. organic food market is segmented into dairy, bakery products, fruits & vegetables, snacks, meats/fish & poultry, sauce & condiments, processed food, packaged food, vegan meats, and others. As a result of the consumer demand for pasture-raised eggs, which are considered healthier and more nutritious, the meat/fish & poultry segment holds the largest market share. Moreover, major meat and poultry producers offer their customers natural, grass-fed, and hormone-free meats and poultry products, which drives the growth of the segment. Nevertheless, the demand for vegan meat is also gaining significant traction across the US with more and more people switching to a plant-based diet.

US Organic Food Market - By Distribution Channel

Based on distribution channels, the U.S. organic food market is segmented into online channels and offline channels. The offline channel is further classified into supermarkets/hypermarkets, convenience stores, retail stores, and others. The online segment accounts for the largest market share because of the inclination of the younger demographic towards the convenience of door-step delivery. The organic food brands resort to popular grocery sites such as Amazon.com, Walmart, etc., besides launching their websites to boost their market sales.

US Organic Food Market - Competitive Landscape

The leading players in the U.S. organic food market are WhiteWave Foods Company, Hain Celestial Group, General Mills, Nature's Path Foods, Amy's Kitchen, Newman's Own, Impossible Foods, Shenandoah Growers, Good PLANeT Foods, Rowdy Mermaid Kombucha, and other prominent players.

The market is highly concentrated among leading players, such as WhiteWave Foods, General Mills, Hain Celestial Group, and holds a major share in the market. However, several organic food startups and small companies are also emerging and are expected to give tough competition to big players in the upcoming years with their wide range of products. The companies constantly launch new products that meet the changing consumer needs and tastes. Furthermore, the adoption of competitive strategies such as partnerships, mergers, acquisitions, collaborations, etc., is also prominent in this market.

Recent Development

  • In December 2021, ChocXO, a leading US-based organic chocolate factory, announced its partnership with Sprouts, a supermarket chain, to expand its presence in the U.S. and increase brand visibility and product accessibility.

Scope of the Report

Attributes

Details

Years Considered

Historical data – 2017-2020

Base Year – 2020

Forecast – 2021 – 2027

Facts Covered

Revenue in USD Billion

Product Service/Segmentation

By Product Type, By Distribution Channel

Key Players

WhiteWave Foods Company, Hain Celestial Group, General Mills, Nature's Path Foods, Amy's Kitchen, Newman's Own, Impossible Foods, Shenandoah Growers, Good PLANeT Foods, Rowdy Mermaid Kombucha, and other prominent players.

By Product Type

  • Dairy
  • Bakery Products
  • Fruits & Vegetables
  • Snacks
  • Meats/Fish & Poultry
  • Sauce and Condiment
  • Processed Food
  • Packaged Food
  • Others

By Distribution Channel

  • Online Channels
  • Offline Channels
  1. Supermarkets/Hypermarkets
  2. Convenience Stores
  3. Retail Stores
  4. Others
  1. Research Framework
    1. Research Objective
    2. Product Overview
    3. Key Market Segments
  2. Research Methodology
    1. Qualitative Research
    2. Methodology
    3. Regional Split of Primary & Secondary Research
    4. Secondary Research
    5. Primary Research
      1. Breakdown of Primary Research Respondents, By Region
      2. Breakdown of Primary Research Respondents, By Industry Participants
    6. Market Size Estimation
    7. Assumptions for the Study
    8. Market Breakdown & Data Triangulation
  3. Executive Summary
  4. Industry Insight and Growth Strategy
    1. Value Chain Analysis
    2. DROC Analysis
      1. Market Drivers
        1. Increasing Health Awareness Among Consumers
        2. Launch of Wide Range of Organic Food Products
      2. Market Restraints
        1. High Cost of Organic Food Products
      3. Market Challenges
        1. Huge Demand and Supply Gap
      4. Market Opportunity
        1. Growing Shift Towards Organic Farming
        2. Increasing Availability of Organic Foods in Offline Stores
    3. Recent Developments
    4. Porter’s Five Forces Analysis
      1. Bargaining Power of Buyers
      2. Bargaining Power of Suppliers
      3. Intensity of Rivalry
      4. Threat of New Entrants
      5. Threat of Substitutes
  5. US Organic Food Market Overview
    1. Market Size & Forecast by Value, 2017-2027
    2. Market Size and Forecast, By Segment
      1. By Product Type
        1. Dairy
        2. Bakery Products
        3. Fruits & Vegetables
        4. Snacks
        5. Meats/Fish & Poultry
        6. Sauce and Condiment
        7. Processed Food
        8. Packaged Food
        9. Others
      2. By Distribution Channel
        1. Online Channels
        2. Offline Channels
          1. Supermarkets/Hypermarkets
          2. Convenience Stores
          3. Retail Stores
          4. Others
  6. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. Market Share Analysis (2020)
    3. Competitive Benchmarking by Operating Parameters
  7. Impact of COVID-19 on U.S. Organic Food Market
  8. Company Profiles (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *
    1. WhiteWave Foods Company
    2. Hain Celestial Group
    3. General Mills
    4. Nature's Path Foods
    5. Amy's Kitchen
    6. Newman's Own
    7. Impossible Foods
    8. Shenandoah Growers
    9. Good PLANeT Foods
    10. Rowdy Mermaid Kombucha
    11. Other Prominent Players
  9. Key Strategic Recommendations

 

List of Figures

 

Figure 1: US Organic Food Market Segmentation

 

Figure 2: US Organic Food Market Value Chain Analysis,

 

Figure 3: Company Market Share Analysis, 2020

 

Figure 4: US Organic Food Market Size, By Value (USD Billion), 2017-2027

 

Figure 5: US Organic Food Market Share (%), By Product Type, By Value, 2017-2027

 

Figure 6: US Organic Food Market Share (%), By Distribution Channel, By Value, 2017-2027

 

 

List of Tables

 

 

Table 1: US Organic Food Market Size, By Product Type, By Value, 2017-2027

 

Table 2: US Organic Food Market Size, By Distribution Channel, By Value (USD Billion), 2017-2027

 

Table 3: WhiteWave Foods Company Financial Analysis

Table 4: WhiteWave Foods Company Business Overview

Table 5: Hain Celestial Group Financial Analysis

Table 6: Hain Celestial Group Business Overview

Table 7: General Mills Financial Analysis

Table 8: General Mills Business Overview

Table 9: Nature's Path Foods Financial Analysis

Table 10: Nature's Path Foods Business Overview

Table 11: Amy's Kitchen Financial Analysis

Table 12: Amy's Kitchen Business Overview

Table 13: Newman's Own Financial Analysis

Table 14: Newman's Own Business Overview

Table 15: Impossible Foods Financial Analysis

Table 16: Impossible Foods Business Overview

Table 17: Shenandoah Growers Financial Analysis

Table 18: Shenandoah Growers Business Overview

Table 19: Good PLANeT Foods Financial Analysis

Table 20: Good PLANeT Foods Business Overview

Table 21: Rowdy Mermaid Kombucha Financial Analysis

Table 22: Rowdy Mermaid Kombucha Business Overview

 

Market Segmentation

By Product Type

  • Dairy
  • Bakery Products
  • Fruits & Vegetables
  • Snacks
  • Meats/Fish & Poultry
  • Sauce and Condiment
  • Processed Food
  • Packaged Food
  • Others

By Distribution Channel

  • Online Channels
  • Offline Channels
  1. Supermarkets/Hypermarkets
  2. Convenience Stores
  3. Retail Stores
  4. Others
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Frequently Asked Questions (FAQs):

Ans: US organic food market reached USD 52.1 billion in 2020.
Ans: The major factors driving the growth of the US organic food market are the launch of wide range of products and increasing health awareness among consumers.
Ans: The key players in the US organic food market are: WhiteWave Foods Company, Hain Celestial Group, General Mills, Nature's Path Foods, Amy's Kitchen, Newman's Own, Impossible Foods, Shenandoah Growers, Good PLANeT Foods, Rowdy Mermaid Kombucha, and other prominent players.
Ans: The online channel segment accounted for the largest share in the US organic food market.
Ans: High cost of organic food products is restricting the growth of the US organic food market.