Supermarket Perimeter - January 2020 - 60

OPERATIONS

by Andy Nelson
IN 2013, U.S. ORGANIC FOOD
SALES TOTALED AROUND $31
BILLION. By 2018, that number
had risen to $48 billion.
Produce, the largest category
of organic foods, leads the way.
But Angela Jagiello, director of
education and insights for the
Washington, D.C.-based Organic
Trade Association, says other

grocery perimeter departments
aren't far behind.
"Prepared foods, deli and
bakery have also seen impressive
growth," she says. And while the
organic meat category is small,
its growth isn't - category sales
grew by double digits in 2018.
Breads are among the top
organic performers in the instore

Keep an eye on dairy
Organic dairy has been a bit of a
conundrum, according to OTA.
Organic eggs see great growth,
but growth in the overall category has slowed.

Two-thirds of
consumers buy
organic fruits and
vegetables, and
52% are willing to
pay more for it.
(Source: Supermarket Perimeter's Consumer Fresh Food
Perimeter Shopping Trends Study)

Organic farmer Phil Foster (left) and horticulturist Eric Brennan
inspect leaves of red chard on Foster's diverse organic farm in San Juan
Bautista, California.
60 - JANUARY 2020

Still, Jagiello says dairy is definitely a sector to keep an eye on.
"I would expect the organic
dairy set to have some interesting
activity. Demand has been stalled
due to a number of factors,
including the rise of plant-based
alternatives," she says. "However,
there's a tremendous amount
of innovation happening in the

www.supermarketperimeter.com

category, and new products, and
upgraded versions of favorites
will drive growth in the next
few years."
Organic dairy, Jagiello adds,
has great stories to tell about
human, animal and planetary
heath - all messages that shoppers care deeply about.
Some things about organic
haven't changed, Jagiello says.
Organic products have always, by
design, been made "with a great
deal of care," she says. That won't
change anytime soon.
But as the category has grown,
it's also evolved.
"Consumer demand has
driven growth and distribution,
improving availability, selection
and price," she says. "Shoppers'
motivations for choosing organic
have begun to evolve from individual concerns - better for me,
better for my family - to those
that also encompass concern for
the planet, farmworkers and local
economies."
As shoppers continue to
understand the benefits of
organic - particularly as a positive solution for soil, air, water
and climate health - more people will be attracted to organic
products in all areas of the supermarket, she adds.

Going mainstream
One major change in the organic
retail food market over the years is
that the majority of organic products are now sold through conventional grocery and club stores.

SCOTT BAUER - USDA

ORGANICS

bakery, Jagiello says. And in deli/
prepared, the association has
been tracking products that have
traditionally been sold in the
center store reimagined as fresh
perimeter items (soups and juices
are too main examples).
Both fresh-baked organic
bread and the deli sector as a
whole are enjoying double-digit
growth, according to OTA.
But the longtime organic category leader - fruits and vegetables - is still carrying the torch.
"Produce continues to be on
a tear, as retailers bring in novel
items, and work to dial in their
best assortment," Jagiello says.
"In the produce set, some retailers are beginning to offer items as
exclusively organic, as opposed
to offering organic and conventional options side by side."
Salads and leafy greens remain
the big organic drivers, she says.


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Supermarket Perimeter - January 2020

Table of Contents for the Digital Edition of Supermarket Perimeter - January 2020

Supermarket Perimeter - January 2020
Editor's Note: The future of baking, now
Contents
The wire
Gen Z
Making memories
Bakery: Boosting impulse sales
Bakery: Sampling
Deli & Prepared Foods: Cross-merchandising cheese
Meat & Poultry: Case ready meats
Meat & Poultry: Natural meats
Produce: Instore juicers
Produce: Organics
Seafood: Salmon
Food Safety: Meat
Commissary Insider
Classifieds
Ad index
Fresh takes
Supermarket Perimeter - January 2020 - Supermarket Perimeter - January 2020
Supermarket Perimeter - January 2020 - Supermarket Perimeter - January 2020
Supermarket Perimeter - January 2020 - 2
Supermarket Perimeter - January 2020 - Editor's Note: The future of baking, now
Supermarket Perimeter - January 2020 - Contents
Supermarket Perimeter - January 2020 - 5
Supermarket Perimeter - January 2020 - The wire
Supermarket Perimeter - January 2020 - 7
Supermarket Perimeter - January 2020 - Gen Z
Supermarket Perimeter - January 2020 - 9
Supermarket Perimeter - January 2020 - 10
Supermarket Perimeter - January 2020 - 11
Supermarket Perimeter - January 2020 - 12
Supermarket Perimeter - January 2020 - 13
Supermarket Perimeter - January 2020 - Making memories
Supermarket Perimeter - January 2020 - 15
Supermarket Perimeter - January 2020 - 16
Supermarket Perimeter - January 2020 - 17
Supermarket Perimeter - January 2020 - 18
Supermarket Perimeter - January 2020 - 19
Supermarket Perimeter - January 2020 - Bakery: Boosting impulse sales
Supermarket Perimeter - January 2020 - 21
Supermarket Perimeter - January 2020 - 22
Supermarket Perimeter - January 2020 - 23
Supermarket Perimeter - January 2020 - Bakery: Sampling
Supermarket Perimeter - January 2020 - 25
Supermarket Perimeter - January 2020 - Deli & Prepared Foods: Cross-merchandising cheese
Supermarket Perimeter - January 2020 - 27
Supermarket Perimeter - January 2020 - 28
Supermarket Perimeter - January 2020 - 29
Supermarket Perimeter - January 2020 - 30
Supermarket Perimeter - January 2020 - 31
Supermarket Perimeter - January 2020 - Meat & Poultry: Case ready meats
Supermarket Perimeter - January 2020 - 33
Supermarket Perimeter - January 2020 - 34
Supermarket Perimeter - January 2020 - 35
Supermarket Perimeter - January 2020 - Meat & Poultry: Natural meats
Supermarket Perimeter - January 2020 - 37
Supermarket Perimeter - January 2020 - 38
Supermarket Perimeter - January 2020 - 39
Supermarket Perimeter - January 2020 - Produce: Instore juicers
Supermarket Perimeter - January 2020 - 41
Supermarket Perimeter - January 2020 - Produce: Organics
Supermarket Perimeter - January 2020 - 43
Supermarket Perimeter - January 2020 - 44
Supermarket Perimeter - January 2020 - 45
Supermarket Perimeter - January 2020 - Seafood: Salmon
Supermarket Perimeter - January 2020 - 47
Supermarket Perimeter - January 2020 - 48
Supermarket Perimeter - January 2020 - 49
Supermarket Perimeter - January 2020 - 50
Supermarket Perimeter - January 2020 - 51
Supermarket Perimeter - January 2020 - Food Safety: Meat
Supermarket Perimeter - January 2020 - 53
Supermarket Perimeter - January 2020 - 54
Supermarket Perimeter - January 2020 - 55
Supermarket Perimeter - January 2020 - 56
Supermarket Perimeter - January 2020 - Commissary Insider
Supermarket Perimeter - January 2020 - 58
Supermarket Perimeter - January 2020 - 59
Supermarket Perimeter - January 2020 - 60
Supermarket Perimeter - January 2020 - 61
Supermarket Perimeter - January 2020 - 62
Supermarket Perimeter - January 2020 - 63
Supermarket Perimeter - January 2020 - Classifieds
Supermarket Perimeter - January 2020 - Ad index
Supermarket Perimeter - January 2020 - Fresh takes
Supermarket Perimeter - January 2020 - 67
Supermarket Perimeter - January 2020 - 68
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