Organic Produce Network Reveals Inflation Impacts on Organics in Q2; Matt Seeley and Tom Barnes Detail
MONTEREY, CA - The impacts of inflation can be felt by all, whether you are a supplier, a buyer, a consumer, or otherwise. According to a recent report from the Organic Produce Network (OPN) and Category Partners, inflation has made its mark on the organic sector. The Q2 2022 Organic Produce Performance Report outlines several shifts that took place during the second quarter of 2022.
“While there are likely some difficult months ahead, the long-term potential for continued organic fresh produce growth remains unchanged,” said OPN Co-Founder and Chief Executive Officer Matt Seeley. “Inflation and supply chain challenges have impacted pricing in the short term; however, organic fresh produce will remain an important component of weekly food shopping as consumers look for healthy, safe, and nutritious products for their families.”
The Q2 2022 Organic Produce Performance Report uses Nielsen IQ syndicated data to track and report the performance of organic fresh produce—and specifically the top 20 leading organic categories, according to a press release.
Organic fresh produce pricing increased by 6.7 percent, with sales for the quarter topping $2.4 billion. Conventional produce's average price increased by more than 9 percent, with total sales of $18.1 billion.
“Seeing a decline in organic volume for Q2 suggests food budgets are under stress in many United States households,” said Tom Barnes, Chief Executive Officer of Category Partners. “It’s common to see budget-centric consumers trade down, substituting for lower-priced conventional items or shifting from a high-priced organic item to a cheaper organic alternative from another category.”
Barnes continued, “Bananas are one of the lowest-priced organic fruits and have the smallest price spread between conventional and organic. For the quarter, while nearly every other organic fruit declined in volume, bananas increased in both dollars (+4.3 percent) and volume (+4.0 percent). So, for budget-focused consumers still wanting to buy organic, bananas provided a cost-effective option. Suppliers need to be aware of shifting consumer purchase drivers and develop strategies to keep shoppers buying.”
For a more detailed breakdown of inflation across various regions and categories, please read the press release in full here.
ANUK will continue bringing you the latest reports, so stay tuned.