The Accessibility Competition

Organic food is entering a new phase as its once steep price premium shrinks and consumers reconsider how much more they will pay for certified, clean production.

For years, organic products carried premiums ranging from fifty to one hundred percent above conventional equivalents. New data from retail scanners and commodity markets show the gap is narrowing. The USDA’s Organic Market Summary for 2024 reports conventional retail prices have risen faster than organic in dairy, eggs, and produce. Analysts attribute the shift to stronger organic supply chains, improved distribution, and higher production volumes. Private label organic assortments at major grocers are also exerting downward pressure while making organic options more visible to mainstream shoppers.

The farm-level picture is more complex. Organic farmgate premiums for grains and oilseeds remain essential to cover higher production, certification, and rotational costs. Mercaris reports that premiums have moderated as more acreage transitions to certified production and global imports influence markets. While more stable, affordable products expand consumer participation, the reduced spread can tighten margins for farmers who rely on it to sustain soil-building rotations and ecological practices.

Shrinking premiums do not signal weakening demand. Instead, they reflect a maturing market. Brands and farmers committed to organic principles must navigate this carefully to protect integrity, maintain economic viability, and continue expanding participation.

Sources: USDA, Organic Market Summary 2024; Mercaris, Organic Grain and Oilseed Market Update 2024–2025; Niemira, B., Retail Food Price Trends and Organic Premiums, USDA Economic Research Service, 2024.