Demand for organic products continued to grow in 2024, with sales reaching a new high, according to a recent report from the Organic Trade Association (OTA).
Last year, dollar sales for organic products amounted to US$71.6 billion. OTA finds that despite pressure from inflation and supply chain changes, the organic marketplace grew at a rate of 5.2 percent compared to growth of 2.5 percent seen in the overall market.
While Gen X recognizes and cares about the organic label, it’s Gen Z and millennials driving this trend, Matthew Dillon, Co-CEO of OTA tells Food Tank. This is true “regardless of income,” noting that “organic consumers are aspirational” and they want the opportunity to purchase more when they can.
Many eaters are drawn to the organic label for its “free from and clean label claims,” Dillon explains. But he adds that younger eaters are increasingly associating organic practices with healthier soils, farm worker wellness, and climate.
“I think that folks are realizing that what you do to the planet, you do to yourself,” Dillon tells Food Tank.
As demand increases, farmers require encouragement and support during the three-year transition period before they can become Certified Organic, Dillon says. This means they need “clear signals” that the market for their products exists so they can take that leap. They also require strong infrastructure to get their products into the marketplace, technical assistance, and financing.
The U.S. Department of Agriculture (USDA) can support producers with some of their needs, but Dillon wonders if the agency has enough capacity in light of cuts to both funding and staff. “Do we have a National Organic Program in the USDA that’s funded at the right level to meet the growth and meet the demand that consumers have for more acres on the ground, more products on the shelves?” he asks.
Dillon isn’t sure how this will play out, but he adds that “it could have an effect on our ability to delight consumers with more organic products.”
The private sector has a role to play as well, Dillon notes, building on his point about financing. “There are some creative ways that businesses have done it, including giving long-term contracts for farmers who are in transition,” he says. These agreements offer stability as farmers convert their fields so they can sustain themselves during the transition and have a guaranteed market to sell into once they’re Certified Organic.
“I want us to think about organic not just as an investment in any given season,” Dillon tells Food Tank, “but an investment in the future generations.”
Watch the full conversation on “Food Talk with Dani Nierenberg” to hear more about the trust eaters have in Certified Organic, opportunities for the organic industry as the Make America Healthy Again movement grows, and why organic standards will continue to evolve.
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Photo courtesy of Smaack, Wikimedia Commons
