In the third quarter of 2023, organic fresh produce showed a modest increase in year-over-year sales and volume. It marks the second consecutive quarter of growth. The data comes from the Q3 2023 Organic Produce Performance Report released by the Organic Produce Network and Category Partners. The report reveals a two percent rise in dollar sales and a 1.9 percent increase in volume for organic fresh produce. Totals reached $2.44 billion in sales and 733 million pounds in volume. Similarly, conventional produce also experienced gains, with a 2.4 percent increase in sales and a 1.8 percent rise in volume.
Despite ongoing inflationary pressures, both organic and conventional produce witnessed comparatively smaller price hikes. Conventional produce prices per pound rose by 0.6 percent, while organic prices saw a minimal 0.1 percent increase. Overall, the average price per pound for the entire produce department only went up by 1 cent compared to the same period last year.
Tom Barnes, CEO of Category Partners, noted that the slight outpacing of organic produce volume over conventional produce reflects consumer interest in healthier and sustainable food choices, demonstrating the continued vitality of the organic industry.
During the third quarter of this year, 15 out of the top 20 organic fresh produce categories saw increased dollar sales. The organic berry category led with $461 million in sales, showing a 6.9 percent year-over-year increase, while organic broccoli experienced the highest sales jump at 14 percent. However, packaged salads, the second-largest category, faced a 5.4 percent decline in sales.
Volume gains were observed in 12 of the top 20 categories, with notable growth in broccoli and watermelon. Conversely, organic celery witnessed the largest volume decline at 21 percent. Peaches also declined by 16 percent and packaged salads fell by -6.4 percent. Bananas maintained their status as the largest volume category.
Brian German
Ag News Director / AgNet West