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As consumers face fears of inflation and a much more challenging economic situation, the short-term outlook for organic remains uncertain.
Yet, what’s quite clear is that the organic industry’s continued inability to convey its value proposition to shoppers has resulted in an extraordinary amount of lost sales.
Here is a look at the data.
The recently released 2023 U.S. Grocery Shopping Trends report, from FMI — The Food Industry Association and The Hartman Group, reveals that while U.S. shoppers remain concerned about rising food prices, consumers are less likely to cut back on the number of items they purchase.
Among shoppers who are concerned about rising food prices, only 32% of shoppers in February reported buying fewer items as a strategy to address rising prices, down from 41% in October. Instead, shoppers continue to look for deals across multiple channels — supermarkets, mass retailers, club stores and online — to mitigate the impact of higher food prices on their budgets.
Other points of note:
When it comes to organic, the situation in Europe may foreshadow what is to come in the U.S., and if that is the case, there is real reason for concern.
Back in the U.S., according to the Q1 2023 Organic Produce Performance Report, sales of fresh organic produce grew by less than 1% in overall dollar sales, with volume decreasing by 3.4%.
The 2023 U.S. Grocery Shopping Trends report also had two notable organic-related items.
1) Among the 75% of shoppers who are concerned with rising food prices, 13% do not buy organic. This number is down from 18% in October 2022, so a definite improvement.
2) Product claims shoppers seek when purchasing a food product:
Out of all the data, the product claim statistics are the ones that are the most disturbing.
While we are somewhat limited in how we can lessen the impact of macroeconomic factors, there is plenty the organic industry can do to educate consumers that organic inherently means “no artificial ingredients” and “no preservatives,” and that the “natural” label is far inferior to “certified organic.” This is because the USDA organic seal has third-party standards, certification and enforcement, while “natural” has none of that.
The shoppers seeking these three product claims are precisely the individuals that organic brands should be targeting. They are already actively seeking out better-for-you options, yet one could speculate that a majority of them do not know that these product claims are not independently verified, unlike the case with “certified organic.”
What this points to is that the industry has done a poor job of communicating to consumers what organic means.
Until then, we will continue to give away hundreds of millions, if not billions, of dollars in yearly sales to conventional brands.
A very sobering thought, especially at a time when organic has never been more important to both human and environmental health.
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With gratitude, 
Max Goldberg, Founder |
In partnership with New Seasons Market and available at all of its Portland-area grocery stores, Hopworks Brewery has come out with a limited-edition Carbon Farmer Hazy IPA. It is made with Kernza, an ecologically beneficial and perennial grain, and a portion of all proceeds from this certified organic beer will be donated to Zero Foodprint, an environmental impact organization.
In a new report by watchdog group OrganicEye, the interests of organic consumers and small farmers are being pushed aside as corporations consolidate their control of the industry.
Across the Sacramento Valley, organic farmers have reported harvest and planting delays, which will be felt for months.
Court records state 48-year-old Mark Haines sold grain that he said was organic, when in fact it violated the USDA's organic program.
After nearly five decades at the organization and having taken Rodale to unprecedented heights, Jeff Moyer reflects on his journey.
The toxic drift from the super-toxic dicamba continues to harm millions of farmland acres, wild places and endangered species.
Natural Prairie Dairy is upcycling manure into clean water, ammonia and fertilizer, allowing it to become more self-sufficient in a tumultuous market.
The company plans to make changes to some regional and global support teams over the next two months, and the changes won’t result in any store closures.
There’s a strained supply of rice due to the ongoing war in Ukraine and weather woes in rice-producing economies like China and Pakistan.
Not surprisingly, major food and beverage trade groups are fighting hard to not have very questionable ingredients banned.
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