Organic Produce Network Details Growth in Sales and Volume for Organic Produce; Tom Barnes Comments
MONTEREY, CA - Let’s take a dive into the organic sector’s impressive performance as of late. According to a Q2 2023 Organic Produce Performance Report issued by Organic Produce Network (OPN) and Category Partners, organic fresh produce saw gains in both sales dollars and volumes in the second quarter of 2023.
“The rate of organic sales growth—while still positive—slowed compared to past years, giving volume a chance to match that growth,” said Tom Barnes, Chief Executive Officer of Category Partners. “This suggests that inflation, while still evident, is not as apparent in organic produce as it was in conventional produce this past quarter.”
Reversing a trend of volume loss seen in 2021 and 2022, organic volume movement increased slightly less than 1 percent. Meanwhile, dollar sales increased by 1.5 percent for Q2 2023 compared to the same period last year, with sales for the quarter topping $2.4 billion. During Q2 2023, conventional produce dollar sales grew by 2 percent, while volume declined by 1.3 percent, as total sales topped $18.8 billion, according to a press release.
The release went on to note that price increases on conventional produce are being more easily absorbed by consumers than the higher prices in organics, as conventional produce outperformed organic produce in dollar growth.
Eleven of the top 20 organic fresh produce categories posted increases in dollar sales compared to the same period last year; organic citrus posted the largest percentage increase, up 19.4 percent, followed by bell peppers, mushrooms, and cucumbers. Table grapes and avocados posted double-digit declines for the quarter. Berries and packaged salads continued to be dominant organic categories, combining to top $850 million for the quarter.
Several notable categories also saw volume gains, including double-digit gains for onions, citrus, and avocados. Organic celery posted the largest decline in volume, down 23 percent, followed by grapes and potatoes.
On a geographical scale, the West and Northeast regions saw increases in dollar sales and declines in volume.
For more info from the in-depth report, click here.
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