2022 Q1 Organic Produce Performance

Organic fresh produce in Q1 of 2022 gained in dollars year over year but declined in volume for the first time in a long time. Produce in general gained 6.9% in dollars for Q1 of 2022 and declined 2.7% in volume. Organic produce declined in volume by just below 1% year over year but gained 3.9% in dollars. Conventional produce posted larger percentage gains in dollars and larger percentage declines in volume. Conventional produce average pricing jumped by more than 10% compared to 2021 while the organic produce average price rose just below 5%.

The fact that organic produce volume did not fall as drastically as conventional suggests that organic produce is less price-sensitive than conventional and has been able to absorb more of the price increase.

Not all produce categories are created equal when it comes to rising prices. Organic herbs and spices and celery both declined in price compared to the same time in 2021, with bananas, strawberries, and bell peppers only rising in price by around 1%. Conversely, organic avocados rose almost 40% in average price year over year.

What is heartening is that volumes are still elevated from Q1 of 2019. We believe that Q2 will tell us much the same story as we move further away from the anomaly that started at the tail end of Q1 in 2020 and moved through the entire second quarter. There is still great potential in moving organics as long as suppliers and retailers stay laser-focused on pricing and making sure there is still a healthy gap between conventional and organic produce.