The U.S. organic food market has grown significantly and changed dramatically since its birth during the 1970s as a counterculture movement. Its growth rate slowed during the recession then rose back into double-digits in 2011. In 2012, organic food sales for at-home consumption totaled $26.3 billion (Wohl, 2014) and comprised over 4% of total U.S. food sales for at-home consumption (Greene, 2013). Produce and dairy products are the dominant categories, accounting for 43% and 15% of total organic sales in 2012 (Greene, 2013), respectively. The Nutrition Business Journal is projecting that the organic food market will exceed $60 billion by 2020 (Wohl, 2014).
According to the Hartman Group, health concerns are prominent in consumers’ reasons for buying organic foods and beverages. Six of the top 10 motivations were (in descending order): “safer for me,” “avoid pesticides,” “avoid GMOs,” “avoid growth hormones,” “for nutritional needs,” and “safer for my children.”
In 2012, mass market retailers, such as Walmart and Target generated 46% of U.S. organic food sales, while 44% of the sales were attributable to natural and specialty retailers. After being sold to Whole Foods in 2007, the former natural foods chain, Wild Oats, has reinvented itself as a food processor providing high-quality products that are affordable and easy to shop for. Its current organic product lines include canned beans and tomatoes, condiments, cookies, milk, vinegar, pasta sauce, grains, nuts, soups, spices, salads, and pre-packaged sandwiches. Now, Wild Oats is partnering with Walmart to supply a subset of these products to the big-box retailer at reduced prices. Meanwhile, Target has re-organized its displays by aggregating certain natural, organic, and sustainably-focused products to make it easier for consumers to find such items (Wohl, 2014). Keep Reading