By Rachel Fioret, Local Journalism Initiative Reporter, Woolwich Observer
Consumer demand, particularly for plant-based meat alternatives, has driven increased sales in Ontario’s organic sector.
A new report from the Organic Council of Ontario (OCO) highlights the province’s dominance in the national organic bean market, with over 49 per cent of fresh and dried organic beans sales. Fresh beans and peas captured 64 per cent and 46 per cent of national sales, respectively, despite a price decline in 2023.
The 2024 Organic Market Report also found that a 41 per cent compound annual growth rate in tofu and meat alternatives, signaling a strong consumer shift toward plant-based diets.
“Ontario’s organic market continues to see robust growth, with consumer demand driving significant increases, particularly in categories like fresh meat, poultry, and dairy,” said OCO executive director Carolyn Young. “This surge reflects a growing preference for organic options, spurred by health and sustainability concerns.”
Produced in partnership with the Canada Organic Trade Association, the report is an inclusive analysis of Ontario’s organic food and beverage sector.
“It is a critical tool to understand the current state of organic production and sales in Ontario, as well as to identify opportunities for growth and innovation in the sector,” said Young.
The report is based on data from Nielsen IQ, providing valuable insights into market trends, sales volumes, and industry performance.
“The organic sector is facing challenges due to inflation, yet certain products have shown resilience, maintaining stable or even reduced prices,” said Krysten Cooper, OCO’s board chair. “This presents a unique opportunity for growth, especially as the lines between organic and conventional pricing continue to blur.”
Some 19 per cent of Canada’s organic operations are in Ontario, and as consumers are choosing healthier and more sustainable foods, the province’s organic market is quickly growing, the report finds.
Sales of organic meat, poultry and seafood increased from 54 per cent in 2020 to 63 per cent in 2023, and organic dairy and eggs held an 18.1 per cent share, substantially higher than the national average of 12.8 per cent.
The report also finds a strong shift towards plant-based diets.
“These trends reflect consumer habits evolving toward healthier, sustainable, and ethically sourced foods,” said Young.
The organic sector continues to grow, with Ontario’s organic market reaching $1.141 billion in sales in 2023, accounting for 38 per cent of national organic grocery sales.
With the current demand for organic products, Ontario could lead in the Canadian organic food sector.
A common obstacle consumers face when choosing organic is the affordability and accessibility of products, often associated with a premium price.
Another hurdle in the Canadian market is provincial regulatory differences. With fewer regulations qualifying the certified organic label in Ontario, there are often inconsistencies in market representation in provinces with increased regulations such as British Columbia and Quebec.
Inflation has also led to supply chain disruptions and bottlenecks, further increasing the cost of specific products.
Young suggests increasing regional organic crop production support through certification subsidies, agronomic, and transition support to optimize the organic supply chain.
She also suggests greater investment in logistics and infrastructure to reduce bottlenecks and improve transportation efficiency to maintain a steady product flow.
Young stressed the importance of health and sustainability, saying that choosing organic food positively impacts personal health and the environment.
“Looking ahead, the organic sector is poised for continued growth, driven by consumer demand and innovations in plant-based products, nutrient-dense foods, and sustainable practices,” she said.
“As we navigate economic challenges, the report highlights exciting opportunities for growth, including optimizing supply chains and making organic products more affordable and accessible for all Ontarians.”
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