Chicken Market: Organic Vs Non-Organic Share

what is the market share for non orgnaic chicken

The global organic chicken market is growing, fuelled by consumers' increasing awareness of the health and environmental benefits of organic food. In 2023, the market was valued at USD 3.785 billion and is projected to reach USD 4.292 billion in 2024, with a compound annual growth rate (CAGR) of 13.8% from 2024 to 2030. This growth is driven by consumers' preference for organic chicken as a healthier substitute for conventional chicken due to the adverse effects of pesticides, antibiotics, and artificial additives in conventional poultry farming.

On the other hand, conventional chicken, or non-organic chicken, still holds the largest market share due to its low cost and high availability. In 2023, conventional chicken accounted for a 54.33% market share, with a market value of USD 23,652.19 million. This segment is expected to grow due to efficient production technologies and economies of scale, which help keep production costs low.

Therefore, while the market share for non-organic chicken currently dominates the market, the organic chicken market is experiencing robust growth, indicating a shift in consumer preferences towards healthier and more sustainable options.

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Organic chicken is hard to find and expensive, but some believe it is healthier and tastes better

Organic chicken farmers ensure their chickens are raised in a cage-free environment and are served a natural diet. This means they grow bigger, are nutritionally richer, and taste better. They are also raised more humanely. Organic chickens are also free from antibiotics, which can cause harmful bacteria that can lead to deadly illnesses in humans. The World Health Organization has recommended that farmers stop using antibiotics to promote growth and prevent disease in healthy animals.

However, organic chicken is difficult to find and expensive. With less than 1% of the overall market share in a $30 billion industry, it is a challenge to source. Organic chicken is almost double the price of non-organic chicken due to costly poultry farming techniques. For example, feed accounts for about 70% of the cost to rear a chicken, and organic chickens eat for double the amount of time.

Despite the challenges, some consumers believe that organic chicken is worth the price. They argue that it is healthier and tastes better. A recent study in France found that 68,000 people who regularly ate organic foods were 25% less likely to develop certain cancers.

While it can be challenging to discern the taste difference between organic and non-organic chicken, some believe that organic chicken has more texture and depth of flavour. There is also less water oozing out when cooking organic chicken.

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Organic chicken accounts for less than 1% of the overall market share, while conventional chicken accounts for 54.33%

Organic chicken is a niche market, accounting for less than 1% of the overall market share, according to the Washington-based National Chicken Council. In contrast, conventional chicken dominates the market, with a 54.33% share in 2023. This disparity is driven by several factors, including cost and availability. Organic chicken is significantly more expensive than its conventional counterpart, often double the price, due to costly farming techniques and the rehabilitation of soil to meet strict organic standards. The higher price of organic chicken can be a deterrent for consumers, especially when considering the average American consumes 93 pounds of chicken annually.

Conventional chicken is widely available and affordable, contributing to its high market share. Efficient production technologies and economies of scale keep production costs low, making it a cost-effective option for consumers. However, conventional chicken has faced scrutiny for the use of antibiotics, growth-maximizing diets, and intensive farming practices. These concerns have sparked a growing interest in healthier and more sustainable alternatives.

The organic chicken market is experiencing significant growth, projected to expand at a CAGR of 13.8% to 14.7% from 2024 to 2030. This growth is driven by increasing consumer awareness of the benefits of organic food, including the avoidance of pesticides, antibiotics, and artificial additives. The demand for chemical-free food items, particularly among meat-eaters, is surging, and consumers are becoming more concerned about animal welfare and environmental impacts.

The North American market is a key contributor to the growth of organic chicken, with a revenue share of 41.55% in 2023. The emphasis on sustainability, ethical sourcing, and animal welfare in this region aligns with consumer values. The global organic chicken market was valued at USD 3.22 billion in 2022 and is expected to reach USD 14.5 billion by 2033. This growth is driven by leading companies introducing new food products containing organic chicken and incorporating consumer trends, such as the inclusion of vegetables and fruits.

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Commodity chicken is priced competitively and widely available, contributing to its high market share

Commodity chicken, also known as conventional chicken, accounted for the largest market share of 54.33% in 2023 in the US. Its high market share can be attributed to its competitive pricing and widespread availability.

Commodity chicken is priced lower than premium/organic chicken due to efficient production techniques, including large-scale farming operations, automation, and established supply chains. Processed parts such as breasts, thighs, and wings are priced slightly higher but remain affordable compared to organic alternatives.

The Southeast region of the US, a major poultry production area, contributes to keeping chicken prices competitive. Conventional chicken remains dominant due to its affordability and wide availability, with the market valued at USD 23,652.19 million in 2023 and projected to grow.

In contrast, organic chicken accounts for less than 1% of the overall market share in the US, a $30 billion industry. Organic chicken is more expensive due to the higher costs of organic feed and the need to rehabilitate soil to meet strict organic standards. The global market for organic chicken is growing, driven by increasing consumer awareness of the benefits of non-chemical food and ethical concerns about conventional poultry farming.

The competitive pricing and wide availability of commodity chicken make it accessible to a large consumer base, contributing to its high market share.

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Organic chicken sales are projected to increase, driven by consumer awareness of food production practices

The global market for organic chicken is experiencing significant growth, with sales projected to increase at a CAGR of 13.8% to 14.7% from 2024 to 2030. By 2033, worldwide sales of organic chicken are expected to reach between $9.31 billion and $14.5 billion. This growth is driven by several factors, including increasing consumer awareness of food production practices and their potential health benefits.

Organic chicken currently accounts for less than 1% of the overall market share in a $30 billion industry. However, consumers are becoming more informed about the adverse effects of pesticides, antibiotics, and artificial additives used in conventional poultry farming. As a result, there is a noticeable shift towards organic options, which are perceived as healthier and safer. The demand for chemical-free food items has surged globally, particularly among meat-eaters who seek products without synthetic chemicals or antibiotics.

The North American organic chicken market, in particular, is experiencing robust growth, with a revenue share of 41.55% in 2023. This growth is attributed to the increasing emphasis on sustainability and ethical sourcing in food production. North American consumers are increasingly concerned about animal welfare and the environmental impact of conventional poultry farming. Organic chicken production adheres to strict guidelines that promote the humane treatment of animals and sustainable farming methods, attracting ethically-minded consumers.

The higher cost of organic chicken is due to the more expensive farming techniques and the cost of gaining certification. Organic chickens are fed a diet of vegetable proteins, fruits, cereals, and supplements containing essential vitamins and minerals. They are also raised without antibiotics and have access to the outdoors, resulting in healthier living conditions. As consumers become more conscious of these farming practices and their impact on animal welfare and the environment, the demand for organic chicken is expected to continue increasing.

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Organic chicken production adheres to strict guidelines for humane animal treatment and sustainable farming methods

Organic chicken farming prioritises animal welfare, with rigorous standards in place to ensure the humane treatment of chickens. For example, Cooks Venture, a company that raises, slaughters, and sells heirloom poultry, employs regenerative farming practices to maintain soil health and minimise the environmental impact of poultry farming. Their chickens are air-chilled, pasture-raised, and have unrestricted outdoor access, certified by the G.A.P. Animal Welfare programme.

Organic chickens are fed a diet of grains, fruits, vegetables, and supplements containing vitamins and minerals. This diet is designed to be biologically sound and gut-healthy, promoting the overall health and well-being of the chickens. Organic chicken growers do not administer antibiotics to their flocks, although hens that contract infections may receive antibiotic treatment while still being marketed as organic.

The organic agriculture movement emerged in response to the intensification of conventional agricultural practices, seeking a more natural and sustainable approach. Organic farming prioritises the use of natural processes and the preservation of rural life, believing that healthy soils lead to healthy food and improved human health. This approach extends to the treatment of animals, with organic standards representing a compromise between fundamental values and feasibility within the farming context.

While organic chicken accounts for less than 1% of the overall market share, consumer interest in organic and sustainably produced chicken is growing. Some consumers are willing to pay a premium for organic chicken due to concerns about their health and the treatment of chickens in conventional farming practices. The organic chicken market is expected to grow steadily, with worldwide sales projected to reach USD 14.5 billion by 2033.

Frequently asked questions

Conventional chicken accounted for the largest market share of 54.33% in 2023, with a market value of USD 23,652.19 million.

Organic chicken accounts for less than 1% of the overall market share.

Organic chicken is almost double the price of non-organic chicken. At Trader Joe's, it costs $2.69 per pound, while Fresh Direct charges $4.99 per pound.

Organic chicken farming is more costly due to the use of organic feed and the rehabilitation of soil to meet strict organic standards.

Yes, the global organic chicken market is experiencing significant growth, driven by increasing consumer awareness of the benefits of organic and non-chemical food.

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