Organic Production and Marketing Newsletter

June 2004

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Organic Sales of Packaged Produce

(The Packer - May 3, 2004)

SPINS, a San Francisco market research firm that provides data to the health food industry, reports that sales of packaged organic produce at natural and health food stores grew from $70.2 million in 2001 to $88.6 million last year. Data were based on sales from 874 stores with annual sales of more than $2 million each.

During the same period, packaged organic sales like baby carrots and salad mixes with Universal Product Codes in conventional stores went from $155.6 million in 2001 to $273.5 million in 2003. Produce is seen as "the gateway to organics", according to the Natural Marketing Institute, a Pennsylvania-based consulting company focusing on the health and wellness market. A concern for health and wellness and a belief that organic produce tastes better were the reasons most cited by consumers of organic produce, whereas high prices and lack of availability were mentioned as reasons some consumers stopped purchasing organic produce.

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