Organic Food Sales Continue Global Growth/Locally Sourced Foods and Farm to Table Increase in Popularity

The Research Institute of Organic Agriculture (FiBL) reported that organic food sales reached almost $132.25 billion worldwide in 2021 (latest data available), up from approximately $100 billion in 2018. The term “organic” typically refers to crops grown without pesticides, herbicides or fungicides. Food that bears an organic label must meet criteria set by the U.S. Department of Agriculture (USDA). Specifically, these products must be at least 95% free of artificial flavors, colors, preservatives or fertilizers, synthetic pesticides, irradiation (germ-killing radiation) or genetically modified ingredients. The U.S. is the largest single market for organic products, reaching a new high of $67.6 billion in sales (including non-food products sales) during 2022, according to the Organic Trade Association.

While the organic sector has been growing rapidly, it remains a relatively small segment of the total food industry. Growth has been led largely by small companies that were able to expand over the years, and later were often acquired by food industry giants. Cereal company Kashi, acquired by Kellogg, is an excellent example. More recently, major food and drink companies are experimenting with launching their own organic brands. Coca-Cola acquired Honest Tea for example, which later launched the Organic Honest Fizz line of soft drinks. Simple Truth is Kroger’s in-store brand of organic foods.

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Organic Food Sales Continue Global Growth/Locally Sourced Foods and Farm to Table Increase in Popularity, Business and Industry Trends Analysis

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