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Organic food – growing fast, but still tiny

June 11, 2007

The latest data from Nielsen shows that the organic food marketplace is growing rapidly (+28%) last year,  but there’s no category where organic has reached a 10% share. Milk is the largest, with 7% of sales, but overall, organic only accounts for just over 1% of total sales.
Organic Food Sales

Obviously, there’s a strong geographic skew; with high penetration levels in San Francisco, Miami, Portland, Seattle, Boston, Sacramentio, Hartford, Denver and Syracuse.

A Whole Foods manager in a local Marin store (Ground Zero for all things organic) told me that he was cutting  back
on stocking organic produce. They found consumers were not prepared to pay
the inflated prices.

Despite all the recent hype, the category has some ways to go. Clearly more education is needed and the price gap between conventional and organic needs to close.

Posted by Ed Cotton

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