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The organic food market, now a $70-billion industry, is experiencing a surge in demand driven by younger, health-conscious consumers, according to a recent survey conducted by the Organic Trade Association (OTA) in collaboration with Euromonitor International. The study, titled “Consumer Perception of USDA Organic and Competing Label Claims,” surveyed over 2,500 consumers across the United States in October 2024 and revealed that Millennials and Gen Z consumers are the most committed organic buyers.
Millennials and Gen Z Embrace Organic for Health Benefits
The survey results indicate that younger generations are prioritizing organic products due to their perceived health and nutritional advantages. The USDA Organic label enjoys deep trust across all age groups, but its impact is particularly strong among Millennials and Gen Z consumers, who associate it with superior health benefits. These younger demographics are more willing to pay a premium for organic products compared to older generations, even across varying income levels.
Notably, nearly 90% of Gen Z consumers (ages 13-28) reported being either committed organic buyers or relatively new adopters of organic products. As this generation continues to grow, start families, and advance in their careers, their influence on the organic market is expected to strengthen.
“Free From” and Health-First Mindset
The study found that younger consumers prioritize food safety and purity, favoring products that are free from toxic pesticides, synthetic hormones, antibiotics, and genetically modified organisms (GMOs). While terms such as “organic,” “natural,” and “local” are widely recognized, many shoppers are drawn to single-attribute claims such as “no added hormones” or “raised without antibiotics.” However, the survey noted that consumers often overlook the fact that USDA Organic certification inherently meets these criteria.
“This latest survey shows a great opportunity for organic,” said Matthew Dillon, Co-CEO of OTA. “Today’s younger consumers pay close attention to claims and want to know more about the products they buy. We need to do more to educate them about the comprehensive benefits of organic certification.”
Organic Market Poised for Continued Growth
The survey also explored consumer familiarity with various food labels, including “organic,” “natural,” “local,” “non-GMO,” and “regenerative.” While organic remains one of the most well-known and trusted certifications, the “regenerative” claim—despite gaining traction in the food industry—remains unclear to many shoppers. More than 40% of respondents were unsure of its meaning, and only 10% expressed willingness to pay extra for products labeled “regenerative.”
Despite this knowledge gap, the organic industry has a significant opportunity to expand its reach. The survey found that over two-thirds of younger consumers actively seek out the organic label for fresh food purchases, including fruits, vegetables, meat, dairy, eggs, and baby food. Organic baby food, in particular, has gained widespread popularity, with 93% of surveyed consumers choosing organic options for their infants.
Future Outlook: Educating Consumers for Long-Term Success
“In just over two decades, the USDA Organic label has built strong consumer trust and become one of the most recognizable food certifications,” Dillon added. “The Gen Z consumer is now making its presence known, and this survey underscores their high regard for organic. By engaging with this generation and educating them on the full scope of organic benefits, the industry can ensure sustained growth in the coming years.”
With health and wellness continuing to drive purchasing behavior, the organic sector has a prime opportunity to solidify its position in the food market by addressing consumer concerns and enhancing awareness about organic standards.
Disclaimer: This article is based on survey findings and industry insights provided by the Organic Trade Association and Euromonitor International. Individual consumer preferences and purchasing behaviors may vary. Readers are encouraged to conduct their own research and consult relevant sources when making food and nutrition-related decisions.
