Organic produce sector could grow 10% in 2022
Published: February 1, 2022
Category: Organic News
Consumers under 25 are currently the most powerful component driving organic produce sales, said Mike Mauti of Canada-based Execulytics Consulting. The market could see a 5% to 10% growth in sales in 2022.
A recent survey of 5,000 Canadian shoppers found 39% of under-25 buyers said organic is always their preferred choice, compared with 25% of those over 25 saying the same. Increased product availability and the narrowing gap between organic and conventional produce prices are the driver, said Steve Lutz with Category Partners.
The under-25 consumers exhibited different product preferences from older groups, opting for mangoes, limes, and Asian vegetables with fewer bananas, apples, potatoes, and strawberries. The lean toward healthier natural foods is a pandemic trend that will last, Mauti said. Produce consultant Craig Carlson noted that the organic market growth has slowed in pace but is “maturing.” Indoor farming has enabled items to be available year-round, such as blueberries; urban greenhouses are producing unusual salad blends with higher price points.
Organic sales grew by 3.4% in the Third Quarter 2021, compared to 2020 (pandemic surge); conventional produce sales only grew 1.3%. Eighty-five percent of all fresh organic produce was in berries, apples, and packaged salads.
Going forward, Lutz said, “It’s not a question of consumer demand. The real issue is supplier capabilities and grower capabilities.”
Based on 2021 figures, Lutz says the percentage of organic produce in the total market could jump from 12% to 22% in the next ten years.
Source: The Packer
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Organic & Non-GMO Insights February 2022
