Compared to the same period the prior year, total organic fresh produce saw a price increase of 6.7% for Q2. Concurrently, total standard produce's average price increased by more than 9% and total sales were $18.1 billion.
All regions across the U.S. reflected increased sales and decreased volume for the quarter. The Northeast had the weakest organic performance during Q2, at a 0.4 percent increase, and volume dropped by 6.1%. The South continued to show the most improvement, with a fairly low ACV compared to other regions. 
The report suggests consumers are watching grocery spending due to inflation of higher priced items. “Seeing a decline in organic volume for Q2 suggests food budgets are under stress in many US households,” said Tom Barnes, CEO 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.”
“Bananas are one of the lowest-priced organic fruits and have the smallest price spread between conventional and organic,” Barnes said. “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.”
Despite the minor decline in volume, OPN Co-founder and CEO Matt Seeley said, “While there are likely some difficult months ahead, the long-term potential for continued organic fresh produce growth remains unchanged. 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.” In addition to bananas, berries (strawberries, blueberries, raspberries, and blackberries) led the way in dollar sales, at $430 million.
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