Organic Turns Challenges into Opportunities – Key Takeaways from the North American Organic Market Webinar
15 May 2025 – Over 100 participants from around the world gathered online for a timely and insightful webinar co-hosted by IFOAM – Organics International, the Canada Organic Trade Association (COTA), the Organic Trade Association (OTA), and The Organic Center (TOC). The session explored how the organic sector in North America is responding to economic pressures, shifting trade dynamics, and evolving consumer behaviours amidst global uncertainty.
With political shifts, tariff volatility, and inflation creating a complex operating environment, the event served as a critical platform for sharing strategies, challenges, and solutions to bolster the resilience of the organic movement.
Key Insights from the Webinar:
- The U.S. organic market reached USD$71.6 billion in 2024, with organic sales growth outpacing inflation and overall retail growth.
- U.S. American consumers continue to show strong trust in the USDA label favouring it over other certifications.
- The U.S-Canada organic trade balance has reversed— from a USD$ 196,051 surplus in 2015 to USD$310,083 deficit in 2024.
- Industry leaders highlighted challenges tied to a rapidly changing tariff landscape and policy shifts under new USDA leadership.
- Early wins in advocacy: Engagement with U.S. congressional representatives and USDA officials has led to the release of major grants for local organic initiatives.
- Growth in the Canadian organic sector is largely driven by strong consumer demand.
- In 2023, the Canadian organic market have reached CAD$9.01 billion, with exports to the totaling CAD$1.797 billion based on HS Code Statistics Canada Data.
- Tariff impacts are significant: The U.S. is currently collecting 5 times the quantity of tariff that Canada is reciprocating.
- A new 100% tariff imposed by China (effective 20 March 2025) on organic yellow peas adds further pressure to Canadian exports.
- Canada is responding by strengthening trade ties with Mexico, encouraging local purchasing, and advancing the development of an Organic Action Plan (OAP) for long-term resilience.
Looking Ahead: A United Path Forward
Despite headwinds, the Canadian and U.S. organic sectors remain committed to adapting and thriving. The webinar underscored the importance of advocacy, cross-sector collaboration, and engaging both consumers and policymakers in advancing the organic movement.
This movement started because of consumers, and consumers are also voters. We’re starting to see more people voting with their dollars at the grocery store shelves. Now people are voting according to who they think will align to their values.
Executive Director, Canada Organic Trade Association
We’re trying to destigmatise that “O-word” and make it clear to folks to understand that organic is a critical piece in that bigger pie of agriculture.
Co-CEO, Organic Trade Association