2022 Q2 Organic Produce Performance

Organic fresh produce in Q2 of 2022 gained in dollars year over year but declined in volume. Total Produce department in general gained 6.7% in dollars for Q2 of 2022 and declined 2.1% in volume. Organic produce declined in volume by 2.8% year over year but gained 3.7% in dollars. Conventional produce posted larger percentage gains in dollars with smaller percentage declines in volume. Conventional produce average pricing jumped by more than 9% compared to 2021 while the organic produce average price rose by 6.7%. Although conventional had a higher percentage increase in price, organics had a higher nominal increase in price. This illustrates possible substitution, as we may be seeing price sensitive consumers opting for more lower priced conventional items rather than organic items.

Not all produce categories are created equal when it comes to rising prices. Although the vast majority of prices rose, organic blackberries declined in price compared to the same time in 2021. With mushrooms, squash, and herbs and spices only rising in price by around 1%. Conversely, organic avocados and limes both rose by more than 20% in average price year over year.

Where conventional and organic produce differ is their volume performances. Conventional produce has steadily declined to have total volume less than volume from Q2 of 2019. Meanwhile organic produce has had small declines, but is still vastly improved from Q2 of 2019. This shows a positive future for organics, as we continue to see the gap shorten between organic and conventional items.