What is Ahead for Organic Produce in 2024?

After many long years of difficulties in the building of organic produce at the retail-store level, we need to consider existing obstacles before concluding where the category is currently headed. One of those vital obstacles is consumer awareness and education.  

Over 25 percent of shoppers have never purchased any organic items. As we move through 2024, there is much more work to be done. 

If consumers only knew what it takes to get organic produce from the farms to their dinner tables, perhaps the pricing would be better understood. Understanding the work involved in planting, growing, tending, harvesting, shipping, and displaying organic produce at the stores would likely convince them to appreciate the premium placed on organics.  

The movement of every item in the produce department is most important in determining its space allocation. The higher the sales and profit contribution, the more shelf space items an item deserves in the section. 

Consistent growth is the direction in which the organic produce industry needs to head. That growth will only happen when there is consumer demand.  

There are five components that determine the amount of display space each organic item merits in the produce department—Availability, Sales, Profitability, Shrink, and Image.

Availability: Product on display must be stocked on a consistent basis. Items customers want to buy need to be regularly available. 

Sales: A more aggressive selling approach will get faster results than just the normal display section. Off-shelf displays where the organic product draws the shoppers to it will build incremental sales.

Profitability: Achieving profit is not only attained through retails alone. The way a product is merchandised plays a vital role within the many strategies of selling off of creative displays. Driving the higher-profit items with in-store promotions will move four times the product, resulting in more revenue. 

Shrink: Since organic produce is free from any preservatives, the shelf life is shorter in shipping and on displays. Therefore, the product requires extra care in handling as well as a more rapid selling time. The faster it sells; the less shrink will develop.

Image: All retailers want to have a good image in the eyes of the consumers. A store’s organic produce section should stand out as very fresh and stocked with an array of varietal items and colors. That is the spark needed to form that positive organic image for a company. 

"If consumers only knew what it takes to get organic produce from the farms to their dinner tables, perhaps the pricing would be better understood."

So, what about consumer awareness? How much more can we do to educate those shoppers who do not have even an inkling of knowledge as to what is actually organic produce? They no doubt only recognize higher prices and instantly shy away from the section altogether.

We have defined several feasible ways to increase the sales percentage of organic produce in stores. Yet, there are some retailers who have literally cut back on their sections rather than maintaining or expanding them.  

Many individuals are willing to pay more for organic produce to benefit their health. Younger generations such as millennials and Gen Z are some the best target demographics for increasing sales volume and future growth.  

Packaging that includes useful information about the farmer who grew the product along with sustainability ethics can also help educate consumers.

Other areas of growth in the organic industry include advancements in farming technology. Newer and better production methods are switching farmers to organics from conventional. The use of artificial intelligence is another advancement that will take farming to the next level.