Organic Market 2010 - Photos
Three quarters of US families have purchased at least some organic products 1
As in 2009, we’ve constructed a profile of “organic buyer groups” among US families using self-reported organic buying data.
Newly Organic families, those who only began purchasing organics in the past two years, comprise about 3 in ten US households (32% in 2009, 36% in 2010).
Experienced Organics, encompassing about 2 in 10 families (20% in 2009, 21% in 2010), first starting buying organics up to 5 years ago.
36%
Newly Organic
Seasoned Organics have been buying organics for more than 5 years and in some cases up to 15 years. They represent about 2 in 10 households (21% in 2009, 16% in 2010.)
32%
20% 21%
Experienced Organics
Non-Buyers, about 3 in 10 households, never buy organic products.
The size of each buyer segment remained consistent with 2009 findings.
Wi thi n the pa s t 2 yea rs
21%
16%
Seasoned Organics
27%
27%
Nonbuyers
2 to 5 yea rs a go 5 to 10 yea rs a go 10 to 15 yea rs a go More tha n 15 yea rs a go I do not buy orga ni c products
Q. When did you first buy organic products, if ever?
2009
2010
(n=1197)
(n=763)
US Families are buying more organics than ever before 2
Purchases of Organic Foods Compared to 12 Months Ago
Compared to 12 months ago… 31% 41% *
Buying less
12% * 6% 30% *
25%
27%
28%
2009
(n=1197)
Buying more Buying same amount
Do not buy organics in this category
2010
(n=763)
Base: Total parents
Q: Compared to 12 months ago, are you buying more, less or the same amount of organic foods in general?
One third say trust in organic products has increased over the past year 3
Changes in Trust of Organic Labeling Decreased
Stayed the same
Increased
Total parents 2009
2010
13% *
59%
28%
8%
58%
34% *
87%
92% *
Organic Buyers 2009
2010
15% *
9%
51%
47%
34%
44% *
85%
91% *
Base: Total parents
Q: Compared to one year ago, has the extent to which you trust that products labeled as “organic” really are organic…
Organic Market Size and Growth The growth rate for organic food products in 2009 was 5.1%. Organic food now accounts for 4% of all food products sold in the U.S. and reached $24.8B USD. •
•
•
The fruit and vegetable category accounts for the largest portion of organic food sales, 38% of total organic food sales in 2009. Fruits and vegetable experienced the highest growth for any food category in 2009 with 11% growth. The second largest categories are beverages, dairy and packaged foods, which represent between 13% and 15%.
Organic Market Size and Growth
25%
$30,000 $25,000
20%
2009
$20,000 15% $15,000 10% $10,000 5%
$5,000
0%
$0
Growth
2009
2008
2007
2006
2005
2004
2003
2002
Total Organic
Food 93%
Non‐ Food 7%
Recent Trends Sales – July – Sept 2010
Organic Food Sales UP 10.7%
Conventional Food Sales UP .7%
13 week dollar % change:
Organic units UP 11.1% FDM ending 10/02/2010
Conventional Units UP .5%
13 week unit % change:
GDP Annual Growth vs. Organic Industry Annual Growth 30.0 25.0
% Growth
20.0 15.0 10.0 5.0 0.0 -5.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 est. GDP Annual Growth rate
Organic Industry Growth Rate
Trends in U.S. Organic Agricultural Production
• 2008 Organic Production Survey* – 14,540 organic farms and ranches in the U.S. – 4.1 million acres – Organic farms in all 50 states – 78% of farms report planning to maintain or increase organic production levels over the next five years. * The 2008 Organic Production Survey conducted as a follow-on to the 2007 Census of Agriculture by the U.S. Department of Agriculture’s (USDA’s) National Agricultural Statistics Service (NASS).
Trends in U.S. Organic Agricultural Production
• U.S. organic farms on average have higher sales, higher production expenses, and higher operating profit than U.S. non-organic farms Organic Farms
All Other Farms
Gross Sales
$217,675
$134,807
Production expenses
$171,978
$109,359
Operating Profit
$45,697
$25,448
* The 2008 Organic Production Survey conducted as a follow-on to the 2007 Census of Agriculture by the U.S. Department of Agriculture’s (USDA’s) National Agricultural Statistics Service (NASS).
As in 2009, we’ve constructed a profile of “organic buyer groups” among US families using self-reported organic buying data.
Newly Organic families, those who only began purchasing organics in the past two years, comprise about 3 in ten US households (32% in 2009, 36% in 2010).
Experienced Organics, encompassing about 2 in 10 families (20% in 2009, 21% in 2010), first starting buying organics up to 5 years ago.
36%
Newly Organic
Seasoned Organics have been buying organics for more than 5 years and in some cases up to 15 years. They represent about 2 in 10 households (21% in 2009, 16% in 2010.)
32%
20% 21%
Experienced Organics
Non-Buyers, about 3 in 10 households, never buy organic products.
The size of each buyer segment remained consistent with 2009 findings.
Wi thi n the pa s t 2 yea rs
21%
16%
Seasoned Organics
27%
27%
Nonbuyers
2 to 5 yea rs a go 5 to 10 yea rs a go 10 to 15 yea rs a go More tha n 15 yea rs a go I do not buy orga ni c products
Q. When did you first buy organic products, if ever?
2009
2010
(n=1197)
(n=763)
US Families are buying more organics than ever before 2
Purchases of Organic Foods Compared to 12 Months Ago
Compared to 12 months ago… 31% 41% *
Buying less
12% * 6% 30% *
25%
27%
28%
2009
(n=1197)
Buying more Buying same amount
Do not buy organics in this category
2010
(n=763)
Base: Total parents
Q: Compared to 12 months ago, are you buying more, less or the same amount of organic foods in general?
One third say trust in organic products has increased over the past year 3
Changes in Trust of Organic Labeling Decreased
Stayed the same
Increased
Total parents 2009
2010
13% *
59%
28%
8%
58%
34% *
87%
92% *
Organic Buyers 2009
2010
15% *
9%
51%
47%
34%
44% *
85%
91% *
Base: Total parents
Q: Compared to one year ago, has the extent to which you trust that products labeled as “organic” really are organic…
Organic Market Size and Growth The growth rate for organic food products in 2009 was 5.1%. Organic food now accounts for 4% of all food products sold in the U.S. and reached $24.8B USD. •
•
•
The fruit and vegetable category accounts for the largest portion of organic food sales, 38% of total organic food sales in 2009. Fruits and vegetable experienced the highest growth for any food category in 2009 with 11% growth. The second largest categories are beverages, dairy and packaged foods, which represent between 13% and 15%.
Organic Market Size and Growth
25%
$30,000 $25,000
20%
2009
$20,000 15% $15,000 10% $10,000 5%
$5,000
0%
$0
Growth
2009
2008
2007
2006
2005
2004
2003
2002
Total Organic
Food 93%
Non‐ Food 7%
Recent Trends Sales – July – Sept 2010
Organic Food Sales UP 10.7%
Conventional Food Sales UP .7%
13 week dollar % change:
Organic units UP 11.1% FDM ending 10/02/2010
Conventional Units UP .5%
13 week unit % change:
GDP Annual Growth vs. Organic Industry Annual Growth 30.0 25.0
% Growth
20.0 15.0 10.0 5.0 0.0 -5.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 est. GDP Annual Growth rate
Organic Industry Growth Rate
Trends in U.S. Organic Agricultural Production
• 2008 Organic Production Survey* – 14,540 organic farms and ranches in the U.S. – 4.1 million acres – Organic farms in all 50 states – 78% of farms report planning to maintain or increase organic production levels over the next five years. * The 2008 Organic Production Survey conducted as a follow-on to the 2007 Census of Agriculture by the U.S. Department of Agriculture’s (USDA’s) National Agricultural Statistics Service (NASS).
Trends in U.S. Organic Agricultural Production
• U.S. organic farms on average have higher sales, higher production expenses, and higher operating profit than U.S. non-organic farms Organic Farms
All Other Farms
Gross Sales
$217,675
$134,807
Production expenses
$171,978
$109,359
Operating Profit
$45,697
$25,448
* The 2008 Organic Production Survey conducted as a follow-on to the 2007 Census of Agriculture by the U.S. Department of Agriculture’s (USDA’s) National Agricultural Statistics Service (NASS).
