Why Organic Farming Is Thriving in the U.S.: Sales, Imports & Consumer Demand

On January 23, 2025, the Economic Research Service (ERS) revised the y-axis label on the chart depicting U.S. organic soybean supply (2011–2021) to correctly indicate that the values are in thousands.

Growing Consumer Demand for Organic Products

Since the 1990s, consumer interest in organic products has risen steadily, motivating U.S. farmers to diversify into organic agriculture across various categories.

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According to USDA National Agricultural Statistics Service (NASS) surveys from 2011 and 2021:

• Certified organic cropland expanded by 79%, reaching 3.6 million acres.
• Certified organic pasture/rangeland declined by 22%, totalling 1.3 million acres.
• The number of certified organic operations rose by over 90%, reaching 17,445 farms.

Retail Landscape for Organic Food

Mainstream grocery stores surpassed natural food retailers in organic food sales during the mid-2000s. By 2020, conventional grocery stores, club stores, and super centres accounted for 56% of organic food sales (Organic Trade Association, 2021).

Organic food consumers span a wide range of demographics, making them difficult to profile precisely. Still, demand continues to rise, sustaining high price premiums in many markets.

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Since 2011, the U.S. Department of Commerce has tracked select organic imports, which have shown steady growth.

Infographic Highlight: U.S. Organic Market in 2021

The Amber Waves infographic titled Farm to Plate: U.S. Organic Markets in 2021 illustrates the impact of consumer demand on the expansion of organic agriculture. Over the last decade, retail sales of organic products in the U.S. grew by an average of 8% annually, reaching over $52 billion in 2021—accounting for about 5.5% of all retail food sales. That year, U.S. farms and ranches sold nearly $11 billion in organic goods, with imports helping to meet consumer needs. Key products include organic milk, lettuce, and blueberries.

Steady Growth Across All Organic Food Categories

While USDA does not track retail sales of organic foods officially, industry data provides insights. According to the Nutrition Business Journal (NBJ, 2022), U.S. organic food sales rose from an estimated $26.9 billion in 2010 (adjusted to 2021 dollars) to $52.0 billion in 2021.

Fresh fruits and vegetables remain the top-selling organic category. In 2021, retail sales of organic produce were valued at $19.2 billion—comprising 40% of total organic food sales. Other leading categories include:

• Dairy and eggs (13%)
• Beverages (12%)
• Packaged/prepared foods (11%)
• Bread/grains (9%)
• Snacks (6%)
• Condiments (5%)
• Meat, fish, and poultry (4%)

Organic Dairy and Plant-Based Alternatives

According to NASS, organic milk production rose 1% from 2019 to 2021, reaching 5.2 billion pounds. However, its market share has declined since 2016. Among plant-based alternatives, organic soy milk leads in sales, followed by organic almond milk. The latter gained popularity in the early 2010s and entered the organic market in 2014 as producers transitioned to organic practices.

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Organic Food Sales Channels

Per the Organic Trade Association, 88% of organic sales occur through conventional and natural food retailers. The remainder is distributed via farmers markets, CSAs, direct-to-consumer avenues, and online. Online organic food sales grew from 2% in 2012 to 6% in 2020.

Compared to conventional farms, organic farms are more likely to use direct marketing. According to the 2017 Census of Agriculture:

• Less than 1% of all U.S. food sales were made directly to consumers.
• Over 6% of organic food sales came from direct-to-consumer channels.
• 18% of certified organic farms sold some portion of their products directly to consumers.

Organic Products Command Higher Prices

The USDA's Agricultural Marketing Service (AMS) has expanded price reporting for organic commodities. Reports now include wholesale prices for fruits and vegetables, grains, poultry, eggs, and milk sales volumes. Organic products consistently carry a price premium over conventional equivalents.

Notable AMS price reporting initiatives include:

• The Annual Organic Cotton Market Report (launched in 2010)
• The Weekly Organic Poultry and Egg Report (since 2004)
• Monthly Milk Marketing Order Report for organic milk sales (since 2006)
• Biweekly National Organic Grain and Feedstuffs Report (since 2007)

An ERS study examining retail premiums for 18 organic products (2004–2010) found that 17 products had average premiums exceeding 20%. Some products, like yogurt, saw steadily increasing premiums, while others—like spinach and coffee—saw gradual declines. Items with lower premiums, such as spinach and granola, gained market share more rapidly.

Higher Production Costs for Organic Farming

USDA data indicates that organic farms face higher production costs than conventional ones. However, organic price premiums can help offset these expenses.

ERS has analyzed cost structures and returns across several organic and conventional agricultural sectors using USDA’s Agricultural Resource Management Survey (ARMS). Relevant reports include:

• U.S. Certified Organic Dairy Production: Three Decades of Growth
• Sources, Trends, and Drivers of U.S. Dairy Productivity and Efficiency
• The Profit Potential of Certified Organic Field Crop Production
• Characteristics of Conventional and Organic Apple Production in the United States

Organic Consumers: A Diverse Group

Consumer studies reveal that organic buyers come from all demographic segments. A 2016 study from the Organic Trade Association showed that over 80% of U.S. households purchased organic food. Millennials (born 1981–1986/87) are consistently identified as the most frequent organic buyers.

Consumers are drawn to organic products for various reasons, including health, environmental sustainability, and animal welfare, and are typically willing to pay more for these benefits.

International Trade Supports U.S. Organic Market

Trade plays a vital role in meeting organic demand in the U.S. and abroad. In 2011, the U.S. Department of Commerce began coding organic products in trade data. The rise in tracked imports reflects both an expanded product list and increased demand for high-value imports like organic blueberries and squash.

U.S. organic trade operates under bilateral equivalency agreements with Canada, the EU, Japan, Korea, Switzerland, Taiwan, and the UK. In 2021, the USDA terminated its recognition agreement with India, citing concerns about the adequacy of India’s organic certification controls.

In certain sectors, such as grains and oilseeds, U.S. demand exceeds domestic supply. For example:

• In 2016, imports accounted for 75% of the U.S. organic soybean supply.
• In 2019, this figure was 64%.
• By 2021, imports dropped 17%, while domestic production surged 65% (to 9.5 million bushels).

For the first time since tracking began in 2011, the U.S. produced more organic soybeans for beans than it imported.