US Organic Produce Sales Up 1.6% in 2023, Best Regional Performance in the South

Topping $9.6 billion, organic produce sales in the US grew by 1.6% in 2023, while volume declined 0.1%, according to State of Organic Produce 2023, a new report produced by Organic Produce Network with data analysis by Category Partners. Conventional produce showed a similar trend, with a year-over-year sales increase of 1.9% and nearly flat volume growth of 0.1%.

Repeating its percentage shares of the prior two years, organic produce made up 12% of all retail produce sales in 2023 and accounted for 7% of total produce volume.

The 68-page State of Organic Produce 2023 report provides an overall view of organic produce retail performance in 2023 as well as specific insights into the top 20 organic produce categories.

By total sales, berries held the top organic produce spot for the second year in a row in 2023, raking in $1.66 billion. Packaged salads followed close behind, with sales of $1.51 billion, and apples took a distant third with sales of $660 million.

The banana category continued to be the top-volume mover of the organic fresh produce sector in 2023, with 538 million pounds sold, and berries eclipsed carrots to narrowly take second place with a volume of 251 million pounds.

All four U.S. regions showed year-over-year sales gains in 2023, and the South was the top performer for the third year in a row, with an increase of 3.4%. Volume performance was a mixed bag, with the South and the Midwest logging small increases and the West and the Northeast posting losses.

As was the case in 2022, year-over-year sales performance among individual organic produce categories in 2023 varied quite widely: Broccoli (7.5%), citrus (7.1%), and berries (6%) showed the best growth, while avocados (−6.6%), kale (−5.9%), and packaged salads (−3%) were the worst performers.

Regarding sales by volume, year-over-year organic produce performance also ranged widely. Citrus had a standout year with a volume increase of 18.2%. Cucumbers (8.6%) and broccoli (6.3%) also performed quite well. The widest year-over-year loss was found in celery (−16.6%), which was at least in part due to wet and cold weather in California. The next-worst volume performers in 2023 were grapes (−10.4%) and bell peppers (−7%).

By total sales, berries held the top organic produce spot for the second year in a row in 2023, raking in $1.66 billion. 

As is well-known, organic produce generally commands a price premium over conventional. However, when it comes to individual produce items, these premiums span a wide range. In 2023, the best price premium by far was found in organic fresh herbs and spices, which sold for a whopping 306% more on average than their conventional counterparts. Other top performers included lettuce (119%), tomatoes (103%), and potatoes (92%).

The narrowest price premiums over conventional in 2023 were found in carrots (24%), citrus (25%), and bananas (30%). These three items represent an excellent opportunity to market to budget-minded organic consumers as well as those who generally buy conventional but are curious about organics.

Examining individual organic produce items by geographical region revealed interesting disparities in the performance of some categories. Herbs and spices, for example, had solid year-over-year volume gains in the Northeast, South, and the Midwest, yet the category declined 12.3% in the West. However, despite its large volume loss, the West still posted a sales increase of 5.5%.

Organic onions were another item that demonstrated interesting year-over-year regional performance. Both sales and volume decreased significantly in the Midwest, with respective losses of 6.5% and 13.2%, while both measures increased substantially in the Northeast, with respective gains of 8.2% and 6.9%.

Organic bell peppers took a big volume plunge in the West, declining by 18.1%, yet they showed solid volume increases in both the Northeast (6.6%) and the South (8.1%), and all four regions saw single-digit sales gains in the category. In keeping with the trend of the overall organic produce sector, organic bell peppers had their largest sales increase in the South (8.1%).

For more insights into last year’s organic produce performance, the State of Organic Produce 2023 report can be found HERE.