Where Organic Growth Is Coming From—and What It Means for Texas

The organic market continues to show steady growth, even under the same economic pressures affecting all of agriculture.

According to a recent report by the Organic Trade Association 1, U.S. organic sales reached $76.6 billion in 2025, increasing by 6.8%, while the overall food market grew at approximately 3.4% . Organic food alone grew even faster, at 6.9% compared to 2.3% for total food sales . This marks another year in which organic has outperformed the broader marketplace.

This pattern is important. Organic growth is not limited to a single year or driven by short-term factors. It reflects a sustained trend of consumer demand that has continued through inflationary periods, supply chain disruptions, and broader uncertainty in food markets.

At the same time, organic has reached a level of maturity within the food system. With more than 6% penetration into total U.S. food sales, organic products are no longer confined to specialty markets. They are now part of routine purchasing behavior for a significant portion of consumers.

This combination—continued growth alongside market maturity—creates a different type of market environment than in earlier years of organic expansion. Growth is still occurring, but it is not evenly distributed. Demand is increasing at the consumer level, while returns at the farm level do not always reflect that increase.

This disconnect suggests that the primary constraint is not whether consumers are purchasing organic products, but how effectively production is aligned with growing categories, functional supply chains, and market channels that return value to the producer.

Another important consideration is that organic products now compete directly with conventional products within the same retail space. Despite this competition—and despite typically higher prices—organic continues to grow at a faster rate. This indicates that consumer purchasing decisions are being driven by factors beyond price alone, including perceived health benefits, ingredient transparency, and trust in certification.

One of the clearest shifts in the organic market is not just how much consumers are buying, but why they are buying it. Organic is no longer functioning only as a production label. It is increasingly being interpreted by consumers as a health-related choice 2. Across recent data, consumers consistently prioritize attributes such as absence of synthetic chemicals, no added hormones or antibiotics, fewer additives and more recognizable ingredients. These are often referred to as “free-from” characteristics. While these attributes are not unique to organic certification, organic is still the most comprehensive and trusted system that delivers all of them under one standard.

At the same time, consumers continue to demonstrate a willingness to pay a premium for organic products, particularly in the United States. That willingness is not being driven simply by branding or marketing. It is tied to a broader shift in how food is viewed. The concept of “food as medicine” has moved from niche discussion into mainstream thinking. Consumers are increasingly making purchasing decisions based on perceived impacts to personal health, long-term wellness, and dietary quality. Organic is no longer competing solely as a production system. It is competing within a broader set of health-related claims, including non-GMO, antibiotic-free, hormone-free, natural, and regenerative.

In this environment, organic retains an advantage because it encompasses many of these attributes within a single certification. However, it also faces increased competition from more narrowly defined claims that may be easier for consumers to interpret. As a result, organic’s value is increasingly tied to how well it is understood and communicated as a complete system, rather than just one attribute among many.

One of the more consistent signals in the organic market right now is where growth is actually occurring. It is not evenly spread across all categories. Instead, it is concentrated in products that are closely tied to protein and nutrient density.

Several of the fastest-growing categories reflect this clearly:

  • Eggs increased by 22.4%
  • Meat, poultry, and seafood increased by 22.5%
  • Yogurt increased by 16.6%

These are not minor categories. These are core food groups, and their growth suggests a shift in how consumers are thinking about food overall.

What Is Driving This Shift: This trend aligns with broader changes in consumer behavior. There is increasing emphasis on:

  • foods that are nutrient-dense rather than calorie-dense
  • adequate protein intake
  • satiety and sustained energy

This shift also connects to the growth of what are often called functional foods—products that offer added benefits beyond basic nutrition.

Yogurt (16.6% increase) is a good example, where growth is tied not only to protein, but also to digestive health. Similar trends are showing up in beverages and snacks that are positioned around energy, recovery, or overall wellness.

Implications for Texas Agriculture:

This focus on protein and nutrition connects directly to several production systems in Texas. Organic sorghum plays a role through dairy feed, linking grain production to milk and yogurt markets. Organic peanuts and other legumes fit into plant-based protein demand, especially as consumers shift toward simpler, whole foods. At the same time, organic beef demand is growing rapidly, but a significant portion is being supplied through imports . This suggests strong demand, but limited domestic supply.

Another shift worth noting is how the plant-based category itself is evolving.

Some of the earlier growth in plant-based foods was driven by highly processed alternatives. That segment is now slowing, with products like meat substitutes declining by about –5.5%. At the same time, simpler foods such as dried beans, fruits, and vegetables are increasing, with dried products growing by 13.6% .

This is a meaningful change. Consumers are not moving away from plant-based foods—they are moving toward foods that are less processed and more recognizable.

Implications for Texas: This aligns well with crops that are already adapted to Texas systems. Cowpeas, fava beans, dry beans, peanuts, and even some of the ancient grains fit naturally into this trend. These crops have traditionally been viewed as secondary or rotational options, but they may begin to carry more direct market value as demand shifts toward whole-food protein sources.

One of the more important signals in the current organic market is not just what is growing, but where that growth is being supplied from. Organic beef, for example, showed very strong growth in 2025 3, but much of that increase is being supported by imports rather than domestic production . This points to a structural issue within organic and certainly within Texas organic. Demand is growing but domestic supply has not kept pace.

What This Suggests: When imports are filling a growing category, it typically means one or more of the following production is limited or slow to expand, processing or infrastructure is limited or non-existent, supply chains are better developed elsewhere in the world, or in this case, it is likely a combination of all three.

Implications for Texas: For Texas producers, this raises a practical question. If the market is growing, but imports are filling that growth, where is the opportunity being missed locally?

Texas has land resources, livestock systems, and experience in beef production. But capturing organic market share requires more than production alone. It depends on finishing systems, certified processing, and consistent market access. (There is work in progress, just click here to read what!)

As more labels and claims enter the marketplace, one of the consistent findings is that organic certification remains one of the most trusted standards available. In the United States, about 74% of consumers report trust in the USDA Organic label . That level of trust is higher than most individual claims such as “natural,” “non-GMO,” or “antibiotic-free,” which tend to address only one aspect of production. At the same time, the number of competing claims has increased significantly. Consumers are now faced with a wide range of labels that emphasize single attributes (e.g., non-GMO) or specific practices (No Additives) or marketing-driven terms (Natural). This creates confusion!

This creates a situation where organic competes against simpler messages while offering a more comprehensive value. If that value is not clearly communicated, organic can be treated as just one option among many, rather than the most complete standard. Organic continues to hold the strongest position as a trusted standard, but its value depends on how clearly that standard is understood and communicated in the marketplace.

Another consistent trend in the organic market is who is making the purchasing decisions. Millennials remain the primary drivers of organic purchases, with strong influence also coming from Gen Z consumers . These groups are not only buying organic—they are shaping how food is evaluated more broadly.

What This Suggests: These younger consumers tend to place higher value on sustainability, transparency in production (they might even like to know how you farm), and alignment with personal values. They are also more likely to seek out information, compare products, and respond to how a product is presented—not just what it is. This changes how products compete in the marketplace.

Conclusion:

These trends point to a consistent conclusion. Organic demand is present and continuing to grow, but that growth is becoming more selective. It is increasingly tied to health, nutrition, and clearly defined value in the marketplace.

For Texas producers, the opportunity remains strong, but capturing that opportunity will depend on how production aligns with these shifting demands and how effectively products move through the system from field to consumer.

References

  1. Organic Trade Association (OTA). 2026. Organic Market Report 2026. Organic Trade Association, Washington, DC.
  2. Organic Trade Association (OTA). 2026. Consumer Perception of USDA Organic and Competing Label Claims in North America. Organic Trade Association, Washington, DC.
  3. Organic Trade Association. 2025. U.S. Organic Marketplace Achieved Significant Growth in 2025 (Press Release).
    https://ota.com/news/press-releases

Personality Plus: Building Resilient Organic Dairy Cows from Day One

I take the Bovine Veterinarian Magazine and appearing in the March/April 2025 edition (picture below) was this interesting article on dairy calf personality by Maureen Hanson. The article rang all kinds of “bells” for me because organic dairy production requires more than just certified feed and pasture. It demands a different kind of cow—one that can thrive with lower intervention, recover from stress without antibiotics, and mature into a productive milking animal under the constraints and values of organic systems. Maureen Hanson wrote her article based on a 2024 peer-reviewed study from the University of Kentucky (Journal of Dairy Science, https://doi.org/10.3168/jds.2023-24257)1 and this study offers a compelling new tool for organic dairy production: personality-based calf selection.

Bovine Veterinarian – March/April 2025

Calf Personality Predicts Future Performance

In the study, 49 Holstein calves were assessed using a series of behavioral tests designed to evaluate their responses to novelty and stress. Through principal component analysis of their behavior, researchers identified three personality traits:

  • Fearful: slower to approach novelty, more time spent being alert but not engaging
  • Active: higher movement across all tests, more physical exploration
  • Explorative: more interaction with objects and environment, less time inactive

These traits were then statistically correlated with detailed data from automatic calf feeders and wearable accelerometers tracking feeding behavior and activity. The results were striking:

  • Active calves consumed more starter grain, reached intake benchmarks earlier, and had significantly higher average daily gain (ADG) across all periods.
  • Explorative calves, surprisingly, had lower starter intake and lower ADG specifically during the weaning period.
  • Fearful calves showed no consistent associations with feed intake or growth but were clearly slower to engage with novel environments—a potential early marker for stress sensitivity.

Implications for Organic Dairy: Observation is Prevention

Organic systems are built on the foundation of preventive health, yet many dairy owners and managers are disconnected from the earliest stages of calf development. Calf rearing is often delegated to extremely capable managers but often few of the decision-makers (probably you since you are reading this) spend the time to observe how calves respond to their first illness, their first separation, or their first group housing experience.

This study confirms that those early responses matter. Calves that are more active adapt better to weaning and start feeding more quickly, leading to stronger growth and rumen development—two key goals in organic dairy management. Explorative behavior, meanwhile, may suggest curiosity but could signal greater sensitivity to changes, especially during stressful transitions.

You Can’t Manage What You Don’t Observe

The beauty of this research is that it doesn’t require high-tech tools to be useful. Yes, wearable accelerometers and automated feeders give precise measurements, but a skilled observer can spot:

  • Calves that hesitate or vocalize excessively when encountering new objects or people
  • Calves that walk their pens often versus those that stand still
  • Calves that seek out grain early versus those that delay

Even 20 minutes per pen per day, using a simple observation sheet for behavior categories like “explores new object,” “approaches person,” or “walks pen,” could help identify high-potential calves for organic dairy production systems.

A Call to Action for Organic Dairy

Early-life behavior should become part of calf selection and culling decisions in organic systems. Just as we select against structural flaws or poor production genetics, we should begin identifying calves whose temperament makes them a poor fit for organic environments. Resilience (something of extreme importance in organic dairying) is not just physical; it is behavioral.

These steps can help producers:

  • Reduce calfhood mortality and illness
  • Improve long-term health and lifetime milk production
  • Target breeding decisions for greater resilience
  • Stay within the boundaries of organic treatment rules

The goal isn’t just healthier calves. It’s to create a herd that is biologically compatible with organic practices. Personality is not just a curiosity. It’s a management tool. And for organic dairy, it might be one of the most important ones we haven’t been using.

Appendix: Early-Life Calf Behavior Observation Checklist

Use this tool I developed during the first 10–14 days of life (or whatever fits your operation) to assess each calf’s temperament and adaptability. Score each behavior during structured (regular) observation sessions or low-stress test scenarios (not when moving to a new pen!). Click: Calf Behavior Tool

Observation CategoryBehavior DescriptionScoring Notes
Novelty ApproachTime to approach a new object (e.g., colored bucket, ball) placed in pen1 = avoids; 2 = cautious/slow; 3 = approaches/touches; 4 = immediate interest
Response to HumanReaction when person enters pen or stands nearby1 = flees or hides; 2 = freezes; 3 = moves away calmly; 4 = approaches or investigates
Pen MovementGeneral movement over 10 minutes1 = mostly stationary; 2 = some walking; 3 = walks frequently; 4 = constant movement
Play BehaviorJumps, kicks, head butts, or frolics1 = none; 2 = rare; 3 = moderate; 4 = frequent
VocalizationsCalf vocalizes when alone or during change (e.g., feeding or handling)1 = silent; 2 = occasional; 3 = frequent; 4 = constant/loud
Feeder InterestTime to discover starter grain or milk feeder1 = delayed; 2 = average; 3 = quick; 4 = immediate curiosity

Score each calf twice during the observation window to account for variability. Calves with consistently high scores in movement, feeding curiosity, and play behavior may be more biologically suited to organic dairy systems. Those with consistently low or fearful responses may require extra care—or may be poor candidates for organic retention.

  1. Woodrum Setser, D., Proudfoot, K., Costa, J.H.C., Marchant-Forde, R.M., Bewley, J.M., & Cantor, M.C. (2024). Individuality of calves: Linking personality traits to feeding and activity daily patterns measured by precision livestock technology. Journal of Dairy Science, 107(5), 4512–4527. https://doi.org/10.3168/jds.2023-24257 ↩︎

Organic Dairy Feeding Trial

Dr. Sushil Paudyal is Assistant Professor of Dairy Science at Texas A&M and an outstanding dairy researcher.  Dr. Paudyal has a great interest in both nutrition and health issues in dairy cows, but he also likes to study these kinds of interactions in organic dairy cows. Sushil and I have been teaming up over the past couple of years on a few projects and we are starting one this fall (October 2024) that is very interesting. 

In partnership with Kent Nutrition Group, we’re conducting a feeding trial involving a Humic Acid Substance, specifically Menefeed MFG 150, with pens of lactating organic dairy cows. We’ll compare a group that receives Menefeed MFG 150 to a non-fed group and then switch the groups for another phase of the study. This “crossover” design will help us better understand how the supplement impacts these animals.

Our focus will be on three main areas:

  1. Milk Yield and Composition: We’ll monitor how Menefeed MFG 150 affects both the quantity of milk produced and its quality, including components like fat and protein content.
  2. Health Status: By analyzing blood serum tests, we aim to understand how this humic acid substance might influence cow health—looking at factors like immune function and overall vitality.
  3. Rumination and Milk Conductivity: Using sensors, we plan to track rumination time and milk conductivity, which can give insights into digestive efficiency and udder health.

Menefeed MFG 150 is OMRI-listed, meaning it meets the requirements for use in organic systems, which is crucial for our organic dairy trial. The humic substances used in Menefeed MFG 150 are derived from Freshwater Reed-Sedge Peat, a mined product that undergoes mechanical processing to become suitable for animal feeding.

What are humic substances?

Humic substances are organic compounds that come from the decomposition of plant and microbial materials. You may already be familiar with humic and fulvic acids from their use in improving soil health or as foliar plant sprays (link to humic and fulvic acid info for crops). These substances have been shown to have many beneficial properties, although their exact mechanisms can sometimes be mysterious. Research has shown mixed results—sometimes they provide a clear benefit, and other times they don’t—but the potential benefits keep us intrigued.

In dairy cows, recent studies suggest that humic substances like Menefeed MFG 150 may improve rumen fermentation, enhance nutrient utilization, and even support the immune system. If these effects prove true, and if we see an increase in milk production, this trial could lead to a win-win situation for organic dairy farmers, helping them achieve greater production while maintaining cow health.