• The total market size for organic packaged food and beverages in the US in 2017 is US$16,991.9mn, making it the largest market in the world by value.
  • Per capita spending on organic packaged food and beverages in the US is US$52.21, which ranks as the 5th largest spending per capita in the world.
  • The largest company by sales in organic packaged food and beverages is Groupe Danone, which maintains 6.8% of total sales, followed by Hain Celestial Group Inc and Amy’s Kitchen Inc.
  • Organic packaged foods and beverages in the US will see moderate year-on-year growth of around 6% in 2018, on par with the rest of the North America region.
  • The US maintains a market size for organic packaged food and beverages of US$16,991.1mn in 2017, which is 42.1% of global category sales.
  • Within the North America region, the US is the leader in total value sales of organic packaged food and beverages.
  • Despite the large market size, the US will experience slow forecast growth of sales of organic packaged food and beverages, at a 2.7% CAGR from 2017–2022.

QUALITATIVE ANALYSIS

Quick Facts

  • The total market size for organic packaged food and beverages in the US in 2017 is US$16,991.9mn, making it the largest market in the world by value.
  • The US is the world’s largest market for organic food and beverages, accounting for more than 42% of global sales.
  • The sales value of organic packaged food and beverages in the US will continue to grow in the near term, but as the market matures growth rates will be slower than in recent years.

Market Trends

Competitive Landscape

  • The organic packaged food and beverage market is highly fragmented and competitive.
  • The multinational Danone Groupe has the largest share of the organic food market, and US-based Starbucks Corp is the organic beverage market leader.
  • Private-label organic food and beverages cumulatively account for a significant market share: 12.0% for food and 20.4% for beverages.

Prospects and Growth Opportunity

  • The sales value of organic packaged food and beverages in the US will continue to grow in coming years, but as the market matures, growth rates will be slower than in past years.
  • Consumers’ desire for convenience and wellness is expected to continue driving growth in the organic packaged food category, with organic nuts, seeds and trail mixes, organic honey and organic chocolate confectionary projected to post strong growth in coming years.
  • Major brands’ extensions into organic beverages may redefine the landscape in years to come. If the recently introduced organic products from Gatorade and Capri Sun resonate with consumers, other beverage manufacturers may expand into the organics arena and begin reversing the trend of market fragmentation.

General Health & Wellness Trends

General Economic & Demographic Landscape

Economy:

  • Economic growth accelerated modestly in 2017, driven by a buoyant housing market, steady gains in private final consumption and a cyclical rebound in private investment.
  • Fiscal prospects are dominated by the government’s mandatory spending, namely pensions, and health care for the elderly and the poor.
  • Tax reform measures are slated to come into effect in early 2018, and reduced tax bills for many Americans could potentially increase consumer spending.

Population demographics:

  • The total population in the US is rising about 1% per year, and reached 325 million in 2017.
  • American society is aging at a moderate pace, but this is at least partially offset by the continuous inflow of immigrants.
  • In the future, the Hispanic population will be growing several times faster than the non-Hispanic population. Already, the US is the world’s fifth-largest Spanish-speaking country.

Income & expenditure:

  • In 2017 consumer expenditure totaled US$13,103,247.60.
  • Per capita disposable income amounted to US$45,459.40 in 2017.
  • During the 2017-2030 period total disposable income will increase by a cumulative value of 29.4% in real terms—growing at an average annual rate of 2.0%.
  • Spending on communications will be the fastest growing consumer category in the 2017-2030 period, followed by health goods and medical services.
  • The US faces a widening socioeconomic inequality and wealth gap, which has continued to fragment the US consumer market.

QUANTITATIVE ANALYSIS

Organic packaged food & beverage data

Data type

Unit

2014

2015

2016

2017

2018

2019

2020

CAGR
(14-17)

CAGR
(17-20)

 

 

 

 

 

 

 

 

 

 

 

Health & wellness products consumption

USD million

 162,198.8

 165,267.7

 166,216.3

 167,425.3

 167,839.4

 169,081.9

 170,617.1

1.1%

0.6%

Organic packaged food and beverages consumption

USD million

   13,962.6

   14,978.5

   16,014.4

   16,991.9

   17,930.2

   18,845.1

   19,710.8

6.8%

5.1%

Organic packaged food consumption

USD million

   12,657.0

   13,618.5

   14,580.9

   15,495.2

   16,367.2

   17,224.6

   18,033.6

7.0%

5.2%

Organic beverages consumption

USD million

     1,305.6

     1,360.0

     1,433.4

     1,496.7

     1,562.9

     1,620.5

     1,677.2

4.7%

3.9%

Organic packaged food and beverages consumption as a % of total health & wellness products consumption

%

            0.1

            0.1

            0.1

            0.1

            0.1

            0.1

            0.1

-

-

Economic & demographic data

Data type

Unit

2014

2015

2016

2017

2018

2019

2020

 

 

 

 

 

 

 

 

 

Total population

million

        318.6

        320.9

        323.1

        325.4

        327.7

        330.0

        332.3

% Middle and upper class of total population

%

            0.3

            0.3

            0.3

            0.3

            0.3

            0.3

            0.3

% Population aged 65+

%

            0.1

            0.1

            0.2

            0.2

            0.2

            0.2

            0.2

% Population aged 0-14

%

            0.2

            0.2

            0.2

            0.2

            0.2

            0.2

            0.2

% Population with higher education degrees

%

            0.3

            0.3

            0.3

            0.4

            0.4

            0.4

            0.4

Average number of children per household

children

            0.6

            0.6

            0.6

            0.6

            0.6

            0.6

            0.6

GDP per capita

USD per capita

   54,706.8

   56,469.0

   57,638.1

   59,571.0

   60,536.7

   61,437.6

   62,247.0

Consumer expenditure per capita (US$)

USD per capita

   36,420.2

   37,582.8

   38,782.0

   40,375.9

   41,093.0

   41,678.3

   42,172.0

Consumer expenditure per capita on food and non-alcoholic beverages (US$)

USD per capita

     2,396.8

     2,400.9

     2,428.2

     2,507.8

     2,536.4

     2,559.3

     2,578.5

Retailer & City Data

Data category

Rank

City/retailer

Population
(mns)

 

 

 

 

Top cities by population (2017)

1

New York

           20.2

Top cities by population (2017)

2

Los Angeles

           13.3

Top cities by population (2017)

3

Chicago

             9.6

Top cities by population (2017)

4

Dallas, TX

             7.3

Top cities by population (2017)

5

Houston

             6.8

Top grocery retailers by sales (2017)

1

Walmart Supercenter

 -

Top grocery retailers by sales (2017)

2

Kroger

 -

Top grocery retailers by sales (2017)

3

Publix

 -

Top grocery retailers by sales (2017)

4

Safeway

 -

Top grocery retailers by sales (2017)

5

Walmart Neighbourhood Market

 -

Policy Information

Government Agency(s)/Competent Authority

Authorized Government Agency(s): 

United States Department of Agriculture
Agricultural Marketing Service
National Organic Program
 

Agency(s) Contact Information: 

United States Department of Agriculture
Agricultural Marketing Service
National Organic Program
1400 Independence Avenue
SW Room 2642-South
Stop 0268
Washington, D.C. 20250-0268
Phone: 202-720-3252
Standards Fax: (202) 260-9151
Contacts
Website

Organic Regulations and/or Standards

Name(s) of Regulation and/or Standard: 

Date of Implementation: 

2002

Regulation and/or Standard Scope: 

The Organic Foods Production Act covers crops, livestock, and the products derived from them; personal care products that meet the standards may use the organic label.

Certification and Accreditation

Certification: 

Certification is required for 

  • Farms that sell more than $5,000 in organic products per year (gross sales).
  • Handlers that sell more than $5,000 of organic processed food, including handlers that place bulk products into smaller packages or that repackage/relabel products.
  • Processors that sell more than $5,000 of organic processed products, unless all products contain less than 70 percent organic ingredients or only identify the organic ingredients in the ingredient statement.
  • Vendors that handle (e.g. package) and sell products online (but not in stores) or otherwise deliver organic products.

Locate a certifier

Accreditation Method: 

Government

Accreditation: 

USDA's National Organic Program accredits certifiers across the world.

Additional Information

Additional Information: 

For those who export organic products from the United States, additional resources may be available:

Federal Export Tools

State Export Tools 

Definitions

Review definitions of terminology included in this website.