Falling food prices a boon to organic markets

Falling food prices a boon to organic markets

Organic meat, dairy, poultry and eggs are discretionary purchases for many consumers. Entrenched high prices have created headwinds for growth in these segments, even as other parts of the economy cool. The pandemic created volatility in food markets that was followed by a spike in inflation.

Both served to raise food prices, including organic foods, resulting in some demand loss. This has only served to limit growth potential, as the latest estimates from the Organic Trade Association (OTA) show continued moderate growth.

Animal protein segments like dairy, eggs, and meat showed healthy growth in 2023, according to the OTA. These have the most relevance to organic feed markets, generating considerable demand. Organic dairy and egg sales generated $8.2 billion last year, up by 5.5% from 2022. Granular data from the OTA indicate organic milk and cream sales were up by 5% in 2023 to $4.2 billion.

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