Organic farming is an agricultural system that employs organic fertilizers such as compost manure, green manure, and bone meal, and techniques such as crop rotation and companion planting. It is a method of producing food that does not involve synthetic chemicals or genetically modified (GM) seeds to maintain soil fertility and ecological balance thereby minimizing pollution and wastage. It emerged in the early 20th century as a solution to quickly changing agricultural methods.
Organic agriculture has been practiced in the United States since the 1940s. Since then, the industry has expanded from small experimental vegetable plots to large fields selling excess goods under a unique organic label. Organic processed items have been created by food makers, and many retail marketing chains specialize in the selling of "organic" products.
Organic food alternatives are becoming increasingly common in grocery shops as more people seek a better lifestyle and become more environmentally conscious. More and more nations are enacting new organic food rules and guidelines to ensure that anything branded and marketed as organic can be trusted by consumers. Furthermore, the agricultural area for organic food is spreading throughout the world to meet its rising demand. In the future, this will result in lower pricing for organic products, making them more accessible to a wider range of consumers.
In the USA, Three states have more than 1,000 approved organic farms: Wisconsin (1,455), New York (1,407), and Pennsylvania. (1,125). Furthermore, ten states account for nearly three-quarters (73%) of all 2021 purchases. California maintained its advantage in certified organic product sales, accounting for 32% of the total sales in the United States at $3.6 billion. Organic agriculture includes a diverse variety of goods. Crops accounted for $6.1 billion of overall revenue, while cattle and poultry goods (primarily milk and eggs) accounted for $2.9 billion.
Source -Organic food: forecasted market revenue by product U.S. 2014-2025 | Statista
Organic Food Market has grown by leaps and bounds since 2014 and is expected to grow more by the year 2025. Since the organic food business began retailing products, sales of fresh fruits and vegetables have been the highest category of organically cultivated food. Organic frozen and processed food industry sales in the United States were valued at over $7 billion in 2016 and are expected to reach approximately $15.18 billion by 2025.
According to the US Department of Agriculture (USDA), The most popular organic plant-based milk is organic soymilk, followed by organic almond milk (Information Research, Inc., 2021). While almond milk became popular in the early 2010s, organic almond milk first appeared on the market in 2014, as almond farmers moved to an organic production technique. According to the Nutrition Business Journal, production accounted for 40% of U.S. organic food sales in 2021, followed by dairy and eggs (13%), beverages (12%), packaged/prepared foods (11%), bread/grains (9%), snack foods (6%), condiments (5%), and meat/fish/poultry (4%).
Organic farms in the United States have higher production costs than conventional farms on average, though organic price increases over conventional goods at the farm and store level may allow farmers to recoup the higher cost of production associated with growing organically. Demand for some organic farming categories in the United States has grown quicker than local supply. For example, to satisfy demand from the organic dairy and cattle industries, the United States depends on shipments of organic cereals and oilseed products. In 2016, approximately 75% of the stock of organic soybeans was shipped to the U.S., and 64% in 2019.
The organic food industry in the United States contains a combination of well-established and emerging firms. Whole Foods Market, Trader Joe’s, Dean Foods, Organic Valley, Horizon, Amy's Kitchen, Burt’s Bees, Tom’s, Seventh Generation, Eden Foods. Newman's Own and Organic Food Bar are among the major industry participants. Privately held small firms have developed a solid market presence in recent years. SunOpta is another multinational company with a substantial presence in the U.S. market. It will likely expand throughout the forecast period because of increased demand from health-conscious customers. Furthermore, increased organic food production through sustainable farming techniques will likely contribute to market development in the next few years.