1. Department: Food

Sales Up, Volume Down In 2022 Organic Produce Sales

“Organic fresh produce sales grew by 3 percent in 2022, while volume declined by –3.7 percent, as total sales topped $9.4 billion for the year,” according to the 2022 Organic Produce Performance Report released today by Organic Produce Network and Category Partners.

“Total fresh produce sales gained 7.3 percent in dollars for the year but experienced a –1.3 percent decline in volume. Organic fresh produce made up 12 percent of all fresh produce sales and accounted for 7 percent of all fresh produce volume.”

The report also says that “the organic fresh berry category (which includes strawberries, blueberries, raspberries, and blackberries) was the top organic produce category, holding more than 16 percent of organic fresh produce dollars in 2022. Overall fresh berry sales topped 1.6 billion for the year, with organic packaged salads a close second at $1.55 billion.”

“In an inflationary time like this, we expect to see the growth of sales dollars and volume declines repeated for the majority of organic and conventional fresh produce items,” said Tom Barnes, President of Category Partners. “The average conventional price per pound grew by 9.2 percent compared to 2021 while organic produce price per pound rose by 7 percent. With rising prices, we may see more selective organic shopping from consumers as they substitute higher-priced organic items for conventional ones.”

KC’s View:

This is going to be a story oft repeated in a lot of segments and categories – because prices have gone up due to inflation, sales will increase while volume decreases.  They key will be maintaining demand going forward so, when prices stabilize, suppliers and retailers won’t find themselves with a diminished customer base.

The post <strong>Sales Up, Volume Down In 2022 Organic Produce Sales</strong> appeared first on MNB.

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