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International Markets Bureau

MARKET INDICATOR REPORT | NOVEMBER 2011

Organic Packaged Food and Beverages in the United States

Source: Shutterstock

Source: Shutterstock

S. sales of these products are expected to grow at a compound annual growth rate (CAGR) of 6. and there will always be core purchasers of organic products. However. a larger opportunity for private label organic products emerged. In 2010. Organic packaged food is generally more popular than organic beverages in the U. Many consumers believe that the nutritional benefits from consuming organic ingredients will be lost in processing. Consumers in the U. There was a slight decline in organic packaged food and beverage sales during the economic recession in 2009. from 2010 to 2014. Please read titles carefully when comparing data.3% from 2010 to 2014. Organic baby food.6% of organic packaged food sales. as the organic market comes closer to saturation. tend to have a favourable opinion of organic packaged foods as they are perceived as premium products. As consumers sought cheaper products during the recession. the market is expected to continue growing.9 billion in 2010. Private label producers now represent over 10.* Organic packaged foods that require the most amount of processing tend to lag in sales compared to those with less processing. with retail sales reaching almost US$11. organic ready-meals are expected to be the slowest growing packaged food segment in the U. Organic packaged food and beverage sales will never achieve growth rates like those prior to 2008. However. ice cream and confectionery are expected to grow the most during the same period. the organic beverages market only represented 5. INSIDE THIS ISSUE Executive Summary Consumer Trends Organic Packaged Food and Beverage Sales Organic Packaged Food Market Sizes Expenditures Pricing and Market Shares Organic Beverages Fortified/Functional Yogurt Distribution Channels Pricing Samples For More Information 2 3 4 5 7 8 9 11 12 13 15 *Note: Not including alcoholic beverages.S.S.Organic Packaged Food and Beverages in the United States EXECUTIVE SUMMARY The United States (U. and 18.5% of organic beverage sales. Milk and soy beverages are included in packaged food data **Note: Data in tables are reported either in US$ billions and US$ millions when specified. Source: Shutterstock PAGE 2 .S.) has the largest organic packaged food and beverage market in the world. For this reason.8% of the total packaged organic products market.

organic packaged food has increasingly penetrated mass market grocery retailers such as Wal-Mart and Whole Foods. proving that organic products are also attractive to price-conscience consumers.6% of the organic packaged food market and 18. organic packaged food represented only 3. according to Euromonitor.5% of the organic beverage market. which certifies organic products.1 12. uses no pesticides.S.4% of the total packaged food market in the U.00% 2.0 2008 320. the organic market bounced back and is expected to achieve a CAGR of 6. However. sustainable.9 11.3 . consumers often perceive products that do not use harsh chemicals and drugs in the production process (such as pesticides and antibiotics). Although organic products may still be a niche market.6 2013 360. due to the additional information about the source and sustainability of these products as well as personal preference.8 10. organic packaged food and beverages declined in sales as consumers’ budgets were squeezed. as safer.3% from 2010 to 2014.50% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Year Forecast Period Source: Euromonitor.  Even though mass market retailers and private label producers are including organic packaged food and beverage products in their product lines. Total Packaged Food in the United States Historic/Forecast Retail Sales Prices .4 2007 306. and helps the environment by reducing pollution and conserving soil quality.3 2006 296. Market Sizes of Organic vs. Nonetheless.0 10.8 2012 349.Percent (%) 4. will purchase organic products regardless of their price.4 8.US$ Billions Category Packaged Food (PF) Organic PF Source: Euromonitor.0 14.” “Natural” products have the advantage of generally selling at a lower price point than organics. however.Current Prices .00% Percent of Market 3.50% 3. has never claimed that organic foods are more nutritious or safer than other food. or free-range labelled products. Private label even controls 10. hormone-free.CONSUMER TRENDS  A common misconception about organic food is that it is only accessible to and purchased by wealthier consumers. 2011 PAGE 3 2005 289..4 11.Historic/Forecast . organics have recently been scrutinized due to studies showing that organic foods may not actually be more nutritious than other foods. In 2010. While products that are labelled as “natural” do not have a certification process or approval to back up this claim.00% 1.5 7.4 11. marketing research shows that consumers would choose products labelled as “natural” over those labelled as “organic.8 2010 331. It must be noted that the United States Department of Agriculture (USDA).4 2014 373.1 2009 326. 2011 In 2010. The USDA organic certification seal only guarantees that the organic product is as safe as other foods.2 2011 339. but it still represents a large and growing market.50% 2. however. Source: USDA  Organic products compete directly with natural.7 13. Organic Packaged Food Share of the Total Packaged Food Market in the United States . does not use growth hormones or antibiotics.  Certain consumers purchase organic products because they perceive them as being more nutritious than non-organic foods. During the recession in 2009. there will always be a group of consumers who. they are still generally more expensive than regular packaged food products.

7 104. Organic Packaged Food and Beverages in the United States Historic and Forecast Retail Sales Value .4 6.3 5.7 2011 11.0 5.4 0. 2011.9 5.5 15.4 7.2 0. 2011 Forecast Period Organic Packaged Food and Beverages Market Sizes in the United States Historic/Forecast Retail Sales Value .2 23.0 98. However.Current Prices .Current Prices Organic Packaged Food Market Organic Baby Food Organic Bakery Products Organic Confectionery Organic Dairy Products Organic Ice Cream Organic Oils and Fats Organic Ready-meals Organic Rice Organic Sauces.7 2009 10. *CAGR = compound annual growth rate PAGE 4 .3 178.0 0. 2011.US$ Billions 16 14 12 Billions $US Organic Packaged Food Organic Beverages 10 8 6 4 2 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Year Source: Euromonitor.0 6.9 13. Note: Organic milk.US$ Billions Category Organic Packaged Food Organic Beverages 2005 7.6 82. organic beverages represented almost US$700 million.9 3.8 2008 11.1 558.1 0.8 0.2 415.8 2013 13. or 5.8% of the total organic packaged food and beverage market in the U.Current Prices .6 734. Market Sizes of Organic Packaged Food in the United States Forecast Retail Sales Value Period Growth .6 2006 8.8 0.7 6. followed by organic baby food. Dressings and Condiments Organic Snack Bars Organic Soup Organic Spreads Organic Sweet and Savoury Snacks Other Organic Food 2010-14 2010-14 CAGR* % Absolute % 12.9 Source: Euromonitor.8 2014 14.7 2012 12.3 314.8 5.8 37.ORGANIC PACKAGED FOOD AND BEVERAGE SALES In 2010.7 2010 11.3 8.3 268.4 0.3 0.3 247.7 2007 10.3 0.6 Source: Euromonitor.S.6 0.4 11.7 6. organic dairy products will grow the most in retail sales (absolute growth). cream and soymilk are part of the organic packaged food sales category   The fastest growing organic packaged food sector from 2010 to 2014 is expected to be organic ice cream.3 38.

3 50.0 768.8 5.1 72.5 87.710.7 151.4 9.3 38.3 19.3 601.2 27.8 58.2 391.3 1.9 1.1 1.8 23.8 139.1 19.8 612.5 86.1 42.9 71.9 483.1 6.0 214.7 0.207.470.3 3.2 501.7 20.3 1.1 5.4 77.0 34.8 1.3 50.2 2.4 44.027.565.0 185.1 1.1 169.2 10.8 699.2 1.9 42.966.6 1.3 27.790.S.4 74.604.1 49.0 752.4 75.6 159.1 147.054.2 553.7 48.2 0.9 149.2 469.7 3.3 2.0 299.8 458.1 28.7 45.513.4 172.9 835.1 65.4 1.4 25.200.3 62.6 42.0 48.5 154.4 24.7 226.8 1.6 10.9 171.1 543.1 479.ORGANIC PACKAGED FOOD MARKET SIZES In 2010.3 51.4 83.5 156.7 29.956.2 167.6 151.0 675.811.5 1.2 0.US$ Millions Organic Packaged Food Market Organic Baby Food Organic Milk Formula Organic Dried Baby Food Organic Prepared Baby Food Other Organic Baby Food Organic Bakery Products Organic Biscuits Organic Bread Organic Breakfast Cereals Organic Cakes Organic Confectionery Organic Chocolate Confectionery Organic Sugar Confectionery Organic Dairy Products Organic Soy-Based Chilled and Shelf Stable Desserts Other Organic Chilled and Shelf Stable Desserts Organic Cheese Organic Condensed/Evaporated Milk Organic Cream Organic Flavoured Milk Drinks Organic Fromage Frais and Quark Organic Milk Organic Reduced Fat Milk Organic Standard Milk Organic Powder Milk Organic Soy Milk Organic Ice Cream Organic Oils and Fats Organic Butter Organic Olive Oil Organic Vegetable and Seed Oil Organic Ready-meals Organic Rice Organic Sauces.4 19.9 43.230.6 180.9 1.9 23.2 1.5 319.9 180.517.6 698.164.3 62.9 36.410.6 71.4 77.7 15.2 0.2 1.4 69.3 1.4 1.4 43.350.5 20.239.7 79.1 146.6 1.5 1.5 1.1 66.9 4.6 24.3 625.9 25.1 141.329.1 5.8 77.910.8 280.008.7 30.7 51.9 548.5 1.4 400.876.8 51.709.2 326.4 603.8 285.1 345.0 293.9 38.1 4.2 650.0 4.886.7 136.4 562.364.3 62.4 110.189.308.9 58.8 276.1 0.1 1.913.9 22.0 61.5 677.0 112.378.4 1.3 4.6 499.1 29.3 208.3 36.4 billion in sales.1 11.5 77.8 370.7 149.0 54.6 58.3 1.6 28.8 66.1 97.6 12.5 241.6 59.3 1.4 36.4 448.524.7 8.1 33.0 98.5 187. Dressings and Condiments Organic Snack Bars Organic Fruit Bars Organic Granola/Muesli Bars Other Organic Snack Bars Organic Soup Organic Spreads Organic Honey Other Organic Non-Honey Spreads Organic Sweet and Savoury Snacks Organic Fruit Snacks Organic Nuts Other Organic Sweet and Savoury Snacks Other Organic Food Source: Euromonitor.9 57. 2011 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 193.3 2.4 737.8 134.3 32.5 584.2 0.8 144.6 34.918.400.3 27.036.833.5 260.9 1.1 595.452.0 150.2 21.0 2.8 27.6 48.6 1.1 2.8 32.4 800.4 11.6 173.1 30.6 41.429.8 54.2 262.2 49.143.1 26.2 64.7 60.6 147.0 365.4 2. and was the largest organic packaged food segment in the U.8 11.9 71.0 353.9 458.4 815.6 1.7 103.4 166.9 4. the category of organic dairy products reached over US$2.4 38.111.7 158.1 572.5 848.7 903.8 139.1 732.0 183.4 1.3 9.2 72.6 271.7 133.6 3.7 423.4 2.8 284.3 214.5 668.6 324.7 34.832.6 166.180.656.5 217.3 1.0 276.2 342.7 21.8 177.0 22.2 901.0 141.2 6.5 176.9 59.1 1.2 0.6 189.398.8 71.5 13.8 1.8 5.1 59.1 1.686.1 36.9 5.2 117.5 32.6 751.7 1.1 0.2 35.7 49.7 126.2 2.7 11.9 2.1 32.1 248.4 1.1 4.7 247.1 1.5 188.9 45.2 272.7 35.481.275.2 189.2 373.0 1.5 25.291.0 1.7 1.8 12.8 13.193.3 245.8 976.3 26.3 130.2 76.3 119.5 757.1 385.578.6 12.2 1.6 38.3 67.1 85.0 104.3 160.110.1 PAGE 5 .5 154.189.6 58.3 21.0 147.0 3.3 1.9 37.259.089.336.3 35.4 185.3 61.0 1.0 23.502. United States Organic Packaged Food Market Sizes Historic/Forecast Retail Sales Price .752.0 15.760.4 233.2 2.1 45.4 435.9 28.2 1.1 18.7 270.526.7 29.7 26.0 5.4 88.2 46.704.8 363.0 538.032.2 18.2 240.9 1.6 2.8 479.8 70.3 309.7 28.9 35.9 27.1 98.1 2.8 16.7 54.9 517.1 318.1 654.1 0.3 59.6 3.5 81.6 101.166.9 42.4 1.6 247.685.2 1.0 217.149.5 1.1 19.5 215.4 82.4 498.145.3 92.6 22.8 53.291.8 44.8 16.361.2 24.3 24.0 75.3 67.6 15.5 37.5 7.8 179.3 55.2 22.7 119.5 21.8 3.1 93.1 21.0 58.1 1.3 2.8 1.7 71.239.5 551.7 39.0 185.3 346.2 5.7 83.6 786.7 1.650.3 19.9 47.0 1.2 53.0 533.4 156.2 66.0 20.8 915.1 425.1 1.0 1.0 50.5 17.289.2 283.8 1.2 0.6 3.7 162.6 64.1 260.7 840.2 304.5 2.898.3 805.5 50.6 281.4 241.2 165.8 81.8 200.729.6 530.6 1.1 1.4 94.5 56.2 49.Current Prices .6 1.5 1.3 504.8 630.9 2.8 68.4 1.5 194. The organic yogurt market is not counted in this section as it is included in Euromonitor’s fortified/functional market data (see page 11).956.0 45.6 1.8 419.1 1.2 1.8 18.1 205.054.1 2.0 320.6 1.592.4 37.3 771.0 27.2 67.1 444.7 287.434.8 572.239.0 78.2 66.702.2 22.3 62.

4 89.8 6.1 5.2 5.5 6.5 9.3 5.1 0.5 7.6 10.4 6.7 5.2 0.9 1.7 4.6 208.7 4.1 82.3 5.2 20.3 7.0 2.2 2.7 20.2 4.4 8.6 0.2 20.4 481.5 1.0 3.8 4.4 2.4 32.2 19.9 5.8 12.1 5.6 368.9 26.0 3.0 2013 51.9 177.8 22.8 1.4 4.4 7.1 5.8 99.3 64.7 181.8 34.3 5.5 6.7 1.2 64.5 193.1 2.8 0.5 7.1 Not Calculable 5.0 26.6 60.3 8.2 167.8 8.4 0.6 217.4 7.0 7.9 1. 2011 2005 19.7 0.7 4.7 105.2 2.9 0.9 65.3 201.ORGANIC PACKAGED FOOD MARKET SIZES (CONTINUED) United States Organic Packaged Food Market Sizes Historic/Forecast in 000’ Tonnes and million Litres (where specified) Organic Packaged Food Market Organic Baby Food Organic Milk Formula Organic Dried Baby Food Organic Prepared Baby Food Other Organic Baby Food Organic Bakery Products Organic Biscuits Organic Bread Organic Breakfast Cereals Organic Cakes Organic Confectionery Organic Chocolate Confectionery Organic Sugar Confectionery Organic Dairy Products Organic Soy-Based Chilled and Shelf Stable Desserts Other Organic Chilled and Shelf Stable Desserts Organic Cheese Organic Condensed/Evaporated Milk (millin litres) Organic Cream Organic Flavoured Milk Drinks (million litres) Organic Fromage Frais and Quark Organic Milk (million litres) Organic Reduced Fat Milk (million litres) Organic Standard Milk (million litres) Organic Powder Milk Organic Soy Milk (million litres) Organic Ice Cream (million litres) Organic Oils and Fats Organic Butter Organic Olive Oil Organic Vegetable and Seed Oil Organic Ready-meals Organic Rice Organic Sauces.9 40.9 31.0 12.5 202.0 219.3 530.0 317.3 68.2 8.2 0.8 89.7 0.9 11.8 7.1 0.7 0.1 8.1 4.5 5.7 2.2 PAGE 6 .0 210.4 11.4 10.8 6.7 222.0 4.2 4.8 4.2 3.0 2009 2010 2011 45.8 8.9 31.6 15.3 5.2 0.0 21.4 14.4 5.8 9.3 101.2 90.2 87.2 1.5 1.0 4.0 9.7 0.6 5.9 1.2 12.3 187.4 0.6 5.8 4.5 16.6 161.2 17.2 72.4 3.5 6.1 4.9 0.4 4.9 0.8 9.5 2.3 94.3 245.4 219.7 20.4 25.4 4.6 1.4 36.4 600.2 5.9 2.9 687.1 2008 32.0 8.1 10.4 2.0 63.8 301.2 29.9 27.0 467.4 63.7 40.5 2.9 13.0 14.1 6.7 66.6 1.7 3.2 9.5 68.1 6.4 38.1 0.8 0.3 5.3 225.7 476.3 103.3 3.0 41.1 2.1 7.9 183.2 63.1 42.8 657.0 284.8 1.0 261.4 0.2 4.1 2.8 8.4 6.2 4.9 0.0 352.8 7.1 2.0 68.6 7.6 43.5 6.8 200.3 54.6 107.9 0.0 106.8 10.0 2007 26.3 66.0 1.3 331.8 12.9 8.3 117.6 6.6 0.5 176.0 235.2 7.9 66.1 1.3 406.8 10.0 67.8 12.4 5.4 156.2 0.0 6.9 704.1 87.3 40.0 98.6 2014 54.7 95.9 37.8 23.9 5.2 16.9 6.4 1.3 7.9 1.3 2006 22.1 0.1 5.8 58.6 28.7 4.5 9.9 102.2 9.5 5.0 254.2 424.6 0.6 13.2 5.0 399.9 18.2 4.0 58.9 1.7 5.1 18.1 9.8 0.3 2.4 4.5 10.7 3.6 6.1 36.3 51.1 56.7 61.0 74.2 18.3 0.0 4.0 4.2 3.3 16.7 1.2 29.9 7.0 2.6 5.2 7.7 5.3 5.5 25.7 2012 48.5 6.4 4.2 0.1 4.1 47.7 5.3 183.5 5.8 8.5 0.6 8.4 92.4 15.4 1.2 7.5 64.8 21.4 191.4 76.6 627.5 9.1 1.8 20.9 23.7 0.9 0.2 62.3 1.5 19.2 8.8 0. Dressings and Condiments Organic Snack Bars Organic Fruit Bars Organic Granola/Muesli Bars Other Organic Snack Bars Organic Soup Organic Spreads Organic Honey Other Organic Non-Honey Spreads Organic Sweet and Savoury Snacks Organic Fruit Snacks Organic Nuts Other Organic Sweet and Savoury Snacks Other Organic Food Source: Euromonitor.9 46.2 8.0 26.3 6.7 5.5 7.0 1.7 14.3 13.1 14.5 5.3 71.4 6.5 1.2 1.2 137.9 29.5 4.8 9.3 75.0 4.6 326.3 5.8 1.3 7.9 2.3 0.4 3.0 1.8 0.4 5.8 16.6 10.9 221.0 0.1 294.1 1.4 4.8 3.3 368.0 10.5 17.0 178.7 0.2 61.8 3.6 4.2 4.4 546.6 7.5 13.1 7.5 2.9 698.7 93.3 27.2 13.1 130.0 248.5 175.5 20.9 30.9 2.0 87.8 6.3 18.3 5.0 4.9 447.2 1.5 6.1 59.6 8.7 11.2 17.6 18.4 35.5 5.5 308.2 208.4 349.8 8.4 48.9 47.1 35.3 57.4 42.8 71.2 0.3 4.1 14.9 7.3 7.9 165.9 63.2 3.5 17.9 6.9 4.1 5.0 143.8 0.3 67.3 4.4 13.2 2.0 0.1 14.4 70.8 8.7 54.4 11.2 9.7 5.2 213.2 218.2 0.0 76.5 7.7 11.5 58.7 5.4 0.0 13.5 194.0 55.2 5.

3 7.7 6. Dressings and Condiments Organic Snack Bars Organic Soup Organic Spreads Organic Sweet and Savoury Snacks Other Organic Food Source: Euromonitor.5 7.0 0. Dressings and Condiments Organic Snack Bars Organic Soup Organic Spreads Organic Sweet and Savoury Snacks Other Organic Food Source: Euromonitor.7 5.7 2.9 5.9% by 2014.5 4.2 0.0 5.9 0.6 0.0 2.4 5.0 2.8 4.2 1.4 6.1 0.Current Prices $US Organic Packaged Food Market Organic Baby Food Organic Bakery Products Organic Confectionery Organic Dairy Products Organic Ice Cream Organic Oils and Fats Organic Ready-meals Organic Rice Organic Sauces.5 4.5 4.7 0.2 0.8 2.5 Ella’s Kitchen Organic Broccoli.1 10. with around 7.5 7.3 4.2 0.0 7.2 0.7 5.8 0.8 1.0 1.3 0.1 0.1 0.0 4.1 0.5 0.see page 11).0 1.2 0.7 6.6 1.2 0.0 6.5 0.3 0.6 4.0 2.1 0.3 5.2 4.5 0. dairy products were the most-purchased type of organic packaged food in 2010 (not including organic yogurt .6 1.5 1.3 4.1 5.0 1.6 7.7 3.0 6.5 0.2 3.5 0.9 3.3 5.9 0.6 0.7 0.5 1.1 0.1 0.8 3.1 6.2 0.5 0.5 0.2 5.1 0.2 0.6 0.5 0.9 0.2 9.5 1.4 1.4 4.9 9.8 0.9 1.4 0.4 5.00 Store Type: Specialist Retailer Source: Mintel.4 0.8 8.6 9.9 4.5 5.8 2.2% share of the total soup market by 2014. 2011 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 0.3 1.5 1.7 4.7 0.2 0.2 1.6 0. and is expected to have a 10.7 1.4 0.4 0.8 5.5 5.6 4.0 2.3 8.1 0. Organic Packaged Food in the United States Historic/Forecast .1 1.1 0.8 0. Pears and Peas for Babies Price: US$2.EXPENDITURES  On a per-capita basis.4 9.6 0.4 5.7 7.0 4.1 1.7 0.5 5.1 0.6 1.9 0.3 0.5 2010 7. This share of the market is expected to increase to 10.8 2.8 9.6 0.1 3.7% in 2010.7 5.9 1.8 0.1 0.1 7.2 4.1 0.9 6.5 0.0 3.4 3.0 Organic baby products represent a significant part of the whole baby food market.7 4.1 0.2 4.0 5. 2011 PAGE 7 .5 0.8 2.1 0.5 8.4 1.2 0.8 0.5 8.9 4.7 1.6 2.3 0.2 0.6 0. Soup is also a popular organic format. 2011 2009 6.5 1.2 7.5 0. Per Capita Spending on Organic Packaged Food in the United States Historic/Forecast Retail Sales Value .2 4.5 2014 10.1 3.9 6.8 4.Current Prices % of Regular Packaged Food Market by Category Organic Packaged Food Market Organic Baby Food Organic Bakery Products Organic Confectionery Organic Dairy Products Organic Ice Cream Organic Oils and Fats Organic Ready-meals Organic Sauces.9 1.5 0.6 0.6 0.1 2.

1 21. large food processors and producers such as General Mills.3 1.1 per kilogram in 2010.% Breakdown Brand Nature's Path Artisanal Amy's Kitchen Horizon Organic Newman's Own Earth's Best Organic Valley Cascadian Farm Earthbound Farm Health Valley Company name (GBO) Nature's Path Foods Inc Artisanal Amy's Kitchen Inc Dean Foods Co Newman's Own Inc Hain Celestial Group Inc.6 1.6 3.6 1.8 2008 3.6 2010 3. a chocolate confectionery company.7 3.0 2. and private label companies holding a combined 18. was recently purchased by Kraft and now owns 41% of the organic chocolate market.6 2010 11.PRICING AND MARKET SHARES  Organic sweet and savoury snacks are the most expensive organic category.7 1.4 1.0 8.4% of the organic ready-meals market in 2010.6 2.0 1.7 8.29 Store: Whole Foods Source: Mintel.4 9.4 1.7 2.4 6. Retail Sales Unit Price of Organic Packaged Food in the United States . 2011 2009 11.5% of the market for organic sweet and savoury snacks. The Organic Valley Family of Farms General Mills Inc Earthbound Farm Hain Celestial Group Inc.2 16.6 1.0 2.8 16. Amy’s Kitchen brand held 13.1 2.2 18.3 2.8 Maine’s Own Organic 1% Milk Price: US$4.Current Prices Organic Packaged Food Market Organic Baby Food Organic Bakery Products Organic Confectionery Organic Ice Cream .9 2.8 19.6 6. while Danone’s Stonyfield brand held 27.5 19.3 20.1 1.6 2. The 2007 3. followed by Danone’s Stonyfield brand with 14. Starbucks held 12. 2011 Top 10 Brand Shares (by Global Brand Owner) in the United States Organic Packaged Food Market .2 7.5 2. Green and Black’s.0 2.5 11.2% of the market.1 2.2 8. have introduced organic versions of existing products as well as new organic products to the marketplace.7 9.5 1.5 8.4 16.2 2.2 8.1 9. with an average cost of US$20.1 7.6 7.4 1.Historic/Forecast US$ Per kg .2 2.5%.5% of the market.6 8. Due to the gaining popularity of organic products in the U. followed by the Hain Celestial Group with 5. Dean Foods Inc.4% of the market in 2010.7 7.9% of the organic sauces.5 Source: Euromonitor.6% of the market.3 7.2 19.8 2. Examples of products and their prices in each organic category can be found at the end of this report.9% of the market in 2010.8 2. held 9.2 2.US$ per litre Organic Oils and Fats Organic Ready-meals Organic Rice Organic Sauces.7 6.4 18. This trend is expected to continue in the future.0 1.1 1.5 6.1 7.6 1. while Newman’s Own brand held 40.1 1.  The competitive landscape for organic products is very diverse with all companies owning less than 4% of the market. 2011 PAGE 8 .9 20.6 2.  Hain Celestial Group’s Earth’s Best brand held 44% of the organic baby food market in 2010.7 2.9 8.7 16.1% of the organic dairy market in 2010.0 8.6 2. The organic snack bars market is more diverse. Dressings and Condiments Organic Snack Bars Organic Soup Organic Spreads Organic Sweet and Savoury Snacks Other Organic Food Source: Euromonitor. Frito-Lay and Kraft. It sells mostly cereals and bakery products. Nature’s Path is the best-known company in the organic packaged food and beverage sector.6 2014 13..S. with Health Valley by Hain Celestial Group holding only 5.7 2009 3. For organic beverages.0 9. dressings and condiments category. Danone. Hain’s Garden of Eatin brand also only held 3.7 7.

9 8.6 68.2 2.0 2.4 4.0 8.0 214.6 59.3 95.7 11.1 0. 2011 PAGE 9 .8 11.8 60. 2011 2009 2.69 Company: Golden Temple of Oregon Source: Mintel.4 162.9 0.9 12.Current Prices Organic Hot Drinks Organic Coffee Organic Fresh Coffee Organic Instant Coffee Organic Tea Organic Black Tea Organic Fruit/Herbal Tea Organic Green Tea Other Organic Hot Drinks Source: Euromonitor.6 7. *CAGR = compound annual growth rate Organic Hot Drinks in the United States Historic/Forecast .4 6. 2011.3 6.9 44.1 121.3 5.5 13.6 0.9 236.7 59.5 2014 13.2 43.7 12.Current Prices Organic Hot Drinks Organic Coffee Organic Fresh Coffee Organic Instant Coffee Organic Tea Organic Black Tea Organic Fruit/Herbal Tea Organic Green Tea Other Organic Hot Drinks Retail Value (US$ Millions) 2009 2010 2014 160.2 9.1 45.6 2010 11. 2011 2009 11.7 Source: Euromonitor.8 171.Current Prices % Of Regular Beverage Market Organic Hot Drinks Organic Coffee Organic Fresh Coffee Organic Instant Coffee Organic Tea Organic Black Tea Organic Fruit/Herbal Tea Organic Green Tea Other Organic Hot Drinks Source: Euromonitor.2 42.6 4.0 2.9 4.2 0.4 34.7 4.2 7.2 36.6 59.7 4.6 7.ORGANIC BEVERAGES Organic Hot Drinks  Organic coffee is expected to grow the most from 2010 to 2014.0 Retail Unit Price of Organic Hot Drinks in the United States .3 6.Historic/Forecast US$ Per kg .3 CAGR* % 2010-14 9.3 0.4 12.2 170.0 2010 2.2 38.1 1.0 2014 2.3 12.2 91.9 47.7 4.8 68.8 9.1 6.6 154.6 36.8 67.9 Yogi Pure Green Decaf Tea (USDA Certified Organic) Price: US$4.5 67.1 7.2 243.9 13.4 4.9 12.8 164.4 37. and also achieved the largest share of the organic hot drinks market in 2010.2 4.6 -0.6 78. Market Sizes of Organic Hot Drinks in the United States Historic/Forecast .8 49.5 37.

5 2014 1.0 40.0 2.1 189.9 3.Current Prices.1 2.8 2. 2011 PAGE 10 .3 3.8 5.5 1.9 Santa Cruz Organic Berry Nectar Price: US$5.1 0.7 88.0 2.ORGANIC BEVERAGES (CONTINUED) Organic Juices Market Sizes of Organic Juices in the United States Historic/Forecast .9 329.3 16.1 Retail Sales Unit Price of Organic Juices in the United States . Current Prices Organic Juices Organic Concentrates Organic Fruit/Vegetable Juice Organic 100% Juice Organic Juice Drinks (Up To 24% Juice) Organic Nectars (25-99% Juice) Source: Euromonitor.0 Source: Euromonitor. *CAGR = compound annual growth rate Organic Juices in the United States Historic/Forecast .3 0.0 42.5 1.6 2.8 5.1 17. 2011 2009 1.75 Store Type: Supermarket Source: Mintel.6 2.4 4.0 2.5 89.1 3.2 2014 1.5 323.5 44.7 5.6 2.3 2.7 100. 2011 2009 1.5 0.3 377.Current Prices Organic Juices Organic Concentrates Organic Fruit/Vegetable Juice Organic 100% Juice Organic Juice Drinks (Up To 24% Juice) Organic Nectars (25-99% Juice) Retail Value (US$ Millions) 2009 2010 2014 18.8 2. % Of Regular Beverage Market Organic Juices Organic Concentrates Organic Fruit/Vegetable Juice Organic 100% Juice Organic Juice Drinks (Up To 24% Juice) Organic Nectars (25-99% Juice) Source: Euromonitor.7 2.9 3. 2011.US$ Per Litre.6 2.9 198.4 2.5 -1.3 236.3 2010 1.6 CAGR* % 2010-14 -1.5 2010 1.1 3.Historic/Forecast .

586.118.2 2.3 2010 35. 2011 PAGE 11 .6 69.3 26.5 78.6 545.185. This market contains organic yogurt sales.6 1. however.9 16. the two markets cannot be separated for individual analysis.6 1.5 2007 27.7 - Source: Euromonitor. Groupe Dean Foods Co Sodiaal SA (Société de Diffusion Yoplait Internationale Agro-alimentaire) Yakult Yakult Honsha Co Ltd Breyers Unilever Group Rachel's Dean Foods Co Promise Activ SuperShots Unilever Group 2005 56.5 282. In 2010.105.566.0 8.7 6.0 2008 342.4 84. % Breakdown Brand Activia Stonyfield Farm DanActive Danimals Horizon Organic Company/Global Brand Owner Danone.1 0.9 24.3 2009 34.6 351.1 27.1 1.8 9.4 876. 2011.079.0 0.4 43.Current Prices Categories FF Drinking Yogurt Pro/Pre Biotic Drinking Yogurt Other Functional Drinking Yogurt FF Spoonable Yogurt Pro/Pre Biotic Spoonable Yogurt Other Functional Spoonable Yogurt Total FF Yogurt 2005 69.5 50.1 8.0 60.5 1.7 73.1 9.7 CAGR* % 2010-14 4.177.2 26.1 1.1 1.S. growth and brand shares for the fortified/functional yogurt market.0 2010 401. Groupe Danone.3 1.9 9.159.3 10.0 2014 485.9 0.6 21.0 421.1 4.3 1.7 345.2 2.5 1.8 15.0 -0.8 5.9 8.6 632.5 Source: Euromonitor.1 10. the fortified/functional yogurt category represented around 24% of the total yogurt market in the U.3 1.4 1. Groupe Danone.5 0.4 0.6 16.6 2009 406.8 1.6 1.4 547.2 5.5 469.6 1.5 0.4 2007 309.460.7 22.0 291.8 1.8 79.2 1.8 3.FORTIFIED/FUNCTIONAL YOGURT The following is the market size.6 7.7 3.9 385.7 1.8 8. in retail sales value.6 1.1 0.7 1. United States Fortified/Functional (FF) Yogurt Market Size and Growth Historic/Forecast .9 7.6 2008 29.0 816.3 1.012. *CAGR = compound annual growth rate Fortified/Functional Yogurt Top 10 Brand Shares (by Global Brand Owner) in the United States. Groupe Danone.4 105.3 2006 84.Retail Sales Price .736.251.6 -1.9 37.1 2.7 14.0 1.5 8.9 369.9 7.3 5.0 1.3 1.4 1.1 9.184.6 2.8 2006 26.

1  Most of the organic packaged food and beverage products in the U.9 2.1 18. The market share for non-grocery retailers has remained relatively the same over the past five years. supermarkets and superstores in the U.3 0.1 7. Kroger. Safeway.4 0.4 18.S.5 0.1 1. CVS.1 71.1 0. Target. Tengelmann and SuperValu.4 0.4 0.1 1.2 0.6 5.5 1.9 8. Leading hypermarkets. Traditional non-grocery discount retailers such as Dollar General and Family Dollar Stores.0 0. 2011 2010 72. are sold in supermarkets or hypermarkets.0 7.5 2.S.9 18. 2011 PAGE 12 . has been seen devoting entire front-end aisles to its own organic private label brand. Whole Foods Market is the world's largest organic grocery retailer with 283 out of the company’s 294 worldwide stores operating in the U.1 7. a national retail grocery chain.1% of the organic grocery market in 2010. Safeway.6 5. Slater Bros.7 5.3 2. Discounters have been gaining market share.DISTRIBUTION CHANNELS Distribution of Organic Packaged Food and Beverages in the United States Retail Sales Value—% Breakdown Retail Format 2005 2006 2007 2008 2009 Supermarkets/Hypermarkets Discounters Small Grocery Retailers Convenience Stores Independent Small Grocers Forecourt Retailers Other store-based retailing Other Grocery Retailers Non-Grocery Retailers Internet Retailing Source: Euromonitor. Small grocery retailers are losing organic packaged food and beverage market share due to the wider consumer acceptance of organic foods. include Wal-Mart.8 18.4 0.9 18.1 71.4 18. 2011 Full Shelf of O-Organics private label in Safeway. Aldi.8 0.  Source: Planet Retail.9 18.9 2. reaching 2.1 71. Source: Planet Retail.1 71.6 5.0 7.4 0.S.0 7.4 0.1 18.6 1. and Rite Aid.6 0. and this trend has been growing since 2005.1 71.7 5.5 1.9 2. are increasing their grocery selection.9 18.0 0.8 1.1 18.3 0.9 18. Other non-grocery retailers include drugstores such as Walgreens.6 18. and a general consumer trend to shop at supermarkets/hypermarkets.5 4.5 1.

4 5.0 4.0 3.7 4.7 4.5 oz 4.4 3.8 3.0 1.5 oz 3.0 5.0 2.1 oz 11 oz 8 oz 2 x 32 oz 22 oz 14 oz 11 oz 2 oz 3.0 6.3 3.0 3.7 Supermarket/hypermarket Supermarket/hypermarket Supermarket/hypermarket Supermarket/hypermarket Supermarket/hypermarket Supermarket/hypermarket Supermarket/hypermarket Other non-grocery retailers Supermarket/hypermarket Supermarket/hypermarket Supermarket/hypermarket Supermarket/hypermarket Supermarket/hypermarket Supermarket/hypermarket Supermarket/hypermarket Other non-grocery retailers Supermarket/hypermarket Supermarket/hypermarket Other non-grocery retailers Supermarket/hypermarket Supermarket/hypermarket Supermarket/hypermarket Supermarket/hypermarket Supermarket/hypermarket Supermarket/hypermarket Supermarket/hypermarket Supermarket/hypermarket Supermarket/hypermarket Supermarket/hypermarket Supermarket/hypermarket PAGE 13 .75 oz 3. 2011 Company Name Hain Celestial Group Nestlé Nutrition Nestlé Nutrition Sprout Foods Inc Nurture Inc Whole Foods Inc Kashi Co Costco Rudi's Organic Bakery Inc Nature's Path Foods Inc Cascadian Farms Dagoba Foods Green & Black College Farm Foods Edward & Sons Trading Co. Inc DCI Cheese Co Organic Valley Dairy Horizon Organic Dairy Inc Costco Organic Valley Dairy Whole Foods Market Inc Farmers' Dairy Cooperative Lifeway Foods Organic Nancy's Dairy White Waves Foods Pacific Natural Foods Co Stonyfield Farm Stonyfield Farm Stonyfield Farm Trader's Point Creamery Outlets Pack Size 8 oz 8 oz 2 x 3.0 2.7 3.25 oz 32 fl oz 4 x 4 oz 32 oz 10 oz 32 oz Price ($US) 2.7 4.0 3.5 9.5 oz 32 oz 6 oz 16 oz 3 x 64 oz 64 oz 64 oz 64 oz 4 x 5 oz 32 oz 3 x 8.5 oz 2.5 1.PRICING SAMPLES Examples of Organic Products in the United States by Product Category .0 5.6 4.0 3.4 3.7 10.6 1.January 2011 Brands Organic Dried Baby Food Earth's Best Organic Whole Grain Rice Cereal Gerber Organic Brown Rice Organic Prepared Baby Food Gerber Organic Pear & Wild Blueberry Sprout Organic Roasted Banana & Mango Other Organic Baby Food Happy Baby Organic Puffs Organic Biscuits 365 Organic Vanilla Wafer Cookies Kashi TLC Little Crackers Organic Bread Kirkland Signature Split Top Wheat Rudi's Organic Bakery Multigrain Bread Organic Breakfast Cereals Nature's Path Organic Instant Oatmeal Cascadian Farms Organic Kids Fruitful Os Organic Chocolate Confectionery Dagoba Organic Chocolate Green & Black Organic Dark Chocolate Organic Sugar Confectionery College Farm Organic Coffee Hard Candy Let's DoOrganic Gummi Bears Organic Cheese Organic Creamery Sharp Cheddar Organic Valley Monterey Jack Organic Cream Horizon Half & Half Organic Reduced Fat Milk Kirkland Select Organic 1% Milk Organic Valley Organic Standard Milk 365 Organic Whole Milk Farmers' Creamery Whole Milk Organic Sour Milk Drinks Lifeway Organic Probugs Low-fat Strawberry Kefir Organic Nancy's Kefir Raspberry Organic Soy Milk Silk Organic Soy Milk Pacific Natural Foods Co Organic Almond Milk Organic Yogurt Stonyfield Farm Probiotic Organic Yogurt Stonyfield Organic Vanilla Yogurt Organic Soy-Based Yogurt Stonyfield Organic Super Smoothie Trader's Point Creamery Organic Whole Milk Yogurt Source: Euromonitor.7 3.0 2.3 2.5 3.

0 3.8 4.8 oz 9 oz 8 oz 8 oz 16 oz Price ($US) 4.9 7.0 17.0 4.4 2.0 3.8 5.0 3.4 3.PRICING SAMPLES (CONTINUED) Examples of Organic Products in the United States by Product Category .0 3.2 PAGE 14 . 2011 Company Name Oregon Ice Cream Co Whole Treat Foods CROPP Cooperative Wild Harvest Hain Celestial Group Road's End Foods Amy's Kitchen Inc Wild Harvest Lundberg Family Farms Unilever Newman's Own Inc Cascadian Farm Freeland Foods Amy's Kitchen Inc Harry's Organic Foods Whole Foods Inc YS Bee Farms Target Crofters Food Ltd Whole Foods Market Inc Newman's Own Inc Whole Foods Market Inc Whole Foods Market Inc The Hain Celestial Group Hain Celestial Group Inc.0 5.4 7.0 4.7 fl oz 16 oz 32 oz 24 oz 24 oz 6 x 1.4 3.0 5.0 5.0 2.0 7.January 2011 Brands Organic Ice Cream Julie's Organic Mandarin Sorbet Whole Treat Organic Ice cream Bars Organic Butter Organic Valley Cultured Butter Wild Harvest Organic Butter Organic Vegetable and Seed Oil Spectrum Naturals Organic Sesame Oil Organic Ready-meals Road's End Organic Shells & Cheese Amy's Organic Chili Organic Rice Wild Harvest Organic Spring Mix Lundberg Organic Rice Organic Sauces.4 4.5 fl oz 2 x 30 oz 12 oz 32 oz 12 oz 16.2 oz 1.0 7.5 oz 3 x 3 oz 8 oz 16 oz 16 fl oz 6.5 oz 16 oz 6 oz 12 oz 12 oz 3 x 2.7 1.0 3.5 oz 14.8 oz 14.5 8. Dressings and Condiments Bertolli Organic Tomato Basil Newmans Own Organic Organic Granola/Muesli Bars Cascadian Farm Organic Chewy Bars GoRaw Live Granola Bar Organic Soup Amy's Organic Low Fat Split Pea Harry's Organic Creamy Tomato Basil Soup Organic Honey 365 Organic Amber Honey YS Organic Bee Farms Raw Honey Other Organic Non-Honey Spreads Archer Farms Organic Creamy Peanut Butter Crofters Organic Blackberry Fruit Spread Organic Fruit Snacks 365 Organic Raisins Newman's Own Organics Raisins Organic Nuts 365 Organic Almonds 365 Organic Peanuts Other Sweet and Savoury Snacks Bearitos Organic Popcorn Garden of Eatin Sunny Blues Other Organic Food Organic Sunshine Patty Van's Mini Waffles with Flax Columbia River Organic Peas & Carrots Source: Euromonitor.4 2.0 3. The Sunshine Burgers & Specialty Foods LLC Van's International Foods Columbia River Outlets Supermarket/hypermarket Supermarket/hypermarket Supermarket/hypermarket Supermarket/hypermarket Supermarket/hypermarket Supermarket/hypermarket Supermarket/hypermarket Supermarket/hypermarket Supermarket/hypermarket Supermarket/hypermarket Supermarket/hypermarket Supermarket/hypermarket Supermarket/hypermarket Supermarket/hypermarket Other non-grocery retailers Supermarket/hypermarket Supermarket/hypermarket Supermarket/hypermarket Supermarket/hypermarket Supermarket/hypermarket Supermarket/hypermarket Supermarket/hypermarket Supermarket/hypermarket Supermarket/hypermarket Supermarket/hypermarket Supermarket/hypermarket Supermarket/hypermarket Supermarket/hypermarket Pack Size 4 x 2.7 5.

htm USDA.epa.asp Other Key Resources on Organic Standards.fsis.inspection.gov/regulations_&_Policies/labeling_policies/index. please refer to these other AAFC publications: Organic Packaged Food in the Netherlands Organic Packaged Food in Germany Consumer Trends: Food for Individuals with Diabetes in the United States Consumer Trends: Non-Alcoholic Beverages in the United States May 2011 April 2011 February 2011 January 2011 For more detailed information or the latest updates on U.0/nop United States Environmental Protection Agency http://www.usda.tpsgc-pwgsc.FOR MORE INFORMATION For more information on the United States or organic markets.org/ International Federation of Organic Agriculture Movements http://www. Regulations. Organic Product Regulations: http://www.fda.shtml Canadian General Standards Board: Organic Production Standards: http://www. and Labelling Canada Canadian Food Inspection Agency.org/about_ifoam/standards/index.html PAGE 15 .gc.ca/english/fssa/orgbio/orgbioe.html United States USDA: National Organic Program http://www.ca/cgsb/on_the_net/organic/index-e.gov/agriculture/torg.gc.gov/Food/LabelingNutrition/default. please consult: FDA: U.S Food and Drug Administration http://www.gov/AMSv1.S.ams. labelling standards.usda.html Global International Taskforce on Harmonization and Equivalence in Organic Agriculture http://www.ifoam.itf-organic. United States Department of Agriculture Food Safety and Inspection Services http://www.

gc. ON Canada K1A 0C5 E-mail: infoservice@agr. please contact: Agriculture and Agri-Food Canada 1341 Baseline Road. Agriculture and Agri-Food Canada assumes no liability for any actions taken based on the information contained herein. All images. represented by the Minister of Agriculture and Agri-Food Canada (2011). 10715E Photo Credits All photographs reproduced in this publication are used by permission of the rights holders. Organic Packaged Food and Beverages in the United States © Her Majesty the Queen in Right of Canada. ISSN 1920-6615 AAFC No. For additional copies of this publication or to request an alternate format. unless otherwise noted. are copyright Her Majesty the Queen in Right of Canada. Tower 5.The Government of Canada has prepared this report based on primary and secondary sources of information.ca Aussi disponible en français sous le titre : Aliments et boissons biologiques emballés aux États -Unis . 4th floor Ottawa. Although every effort has been made to ensure that the information is accurate.