Market Trends of north america agricultural biologicals Industry
Organic produce demand grows in major countries like the United States, increasing cultivation area with government support
- According to the data provided by FibL statistics, the area under organic cultivation of crops in North America was 1.5 million hectares in 2021. The total organic area in the region increased by 13.5% during the historic period (2017-2021).
- Among the North American countries, the United States is dominant, with 623.0 thousand hectares of agricultural land under organic farming, with California, Maine, and New York being the major states practicing agriculture. Regarding domestic production, the main organic produce was apples (31.1%), strawberries (9.5%), oranges (6.9%), romaine lettuce (6.7%), and potatoes (6.2%). In the case of trade, the most imported products were bananas (53.1%), avocados (7.7%), mangoes (5.8%), blueberries (5.0%), and squash (4.3%), while the most exported were apples (80.0%), pears (14.4%), cherries (4.0%), dried onions (1.5%), and potatoes (0.2%) in 2021.
- Mexico had 531.1 thousand hectares of area under organic farming in 2021. Mexico is among the top 20 organic food producers in the world. Moreover, the major organic food-producing states in the country include Chiapas, Oaxaca, Michoacán, Chihuahua, and Guerrero, which account for 80.0% of the total organic area in the country. Organizations such as the National Association for Organic Agriculture are promoting organic agriculture in the country, which is expected to motivate more farmers to take up organic agriculture.
- Canada's area under organic crop cultivation increased from 400,000 hectares in 2017 to 450,000 hectares in 2021. Row crops occupied the maximum area, with 420,000 hectares in 2021. The Canadian government announced a sum of USD 297,330 in 2021 as an Organic Development Fund to support organic farmers. These initiatives are expected to increase the organic area in the region.
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Growing demand for organic produce in domestic and international markets, rise in per capita spending on organic food
- The average per capita spending on organic food products in North America was recorded as USD 108.0 in 2021. Among the North American countries, the United States had the highest per capita spending, with an average spending of USD 158.0 in 2021.
- The pandemic has been a major factor in the increase of organic food consumption. In 2020, sales of organic products in the United States grew by 14.2%, which represented an increase of USD 1.0 billion, reaching a value of USD 8.50 billion, according to a report by Organic Produce Network and Category Partners.
- In 2021, organic product sales in the United States crossed USD 63.00 billion with a 2.0% increase over the previous year. Organic fruits and vegetables accounted for 15.0% of the total organic product sales with a value of USD 21.0 billion in 2021.
- According to data reported by the Organic Federation of Canada, organic food sales in Canada reached a value of USD 8.10 billion in 2020. Canada is the 6th largest market in the world for organic products, with the supply of organic products failing to keep up with the demand in the country. In 2021, the average spending on organic food per person was USD 142.6. In 2021, Mexico registered a market size of USD 63.0 million for organic products with a global rank of 35, and it is estimated to record a CAGR of 7.2% between 2021 and 2026, according to the Organic Trade Association. However, the per capita spending on organic products in the country is less compared to other countries in the region with a value of USD 0.49 in 2021. It is expected that more players entering the market in Mexico will increase the demand for organic products in the country.
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