Food Co-ops Outpaced Industry in 2023 Local, Organic and Fair Trade Sales

Info found in NCG’s latest “Food Co-op Impact Report”

4/16/2024

Local sourcing was especially notable among NCG's membership, with the average co-op sourcing from 169 area farms and producers, and 22% of the average food co-op’s sales coming from local products.

Food co-ops belonging to National Co+op Grocers (NCG) last year led all food retailers nationwide in the percentage of sales derived from local, organic and fair trade foods and products. According to NCG’s “2023 Food Co-op Impact Report,” the organization’s annual analysis of the collective economic, social and environmental effects and achievements of its community-owned member food co-ops, local sourcing was especially notable among its membership, with the average co-op sourcing from 169 area farms and producers, and 22% of the average food co-op’s sales coming from local products. By contrast, similarly sized food retailers – those operating between one and 10 stores – reported to FMI that they worked with an average of 41 local farms in 2023.

Further, because co-ops are owned by their communities, they support various smaller nonprofits, schools and community groups that often don’t receive corporate funding. Collectively, food co-ops donated $12 million-plus to local groups last year, and NCG contributed another $875,000 to organizations working to advance co-op’s advocacy priorities at the regional and national levels.

Many NCG food co-ops were among the first places that shoppers could find organic products and zero-waste bulk options, and they remain leaders in organic product sales, as well as advocates for plastic reduction. According to NCG’s report, 38% of food co-ops’ combined annual $2.5 billion sales come from certified-organic products, with other natural grocery retailers coming at 23% of sales, while conventional grocers reported just 2.5%, as noted by 2023 SPINS data. Regenerative organic farming methods decrease greenhouse-gas emissions by building soil health for greater sequestration of carbon dioxide and eliminating the need for nitrogen-based fertilizers.

NCG also found that Fair Trade Certified products made up 5% of food co-ops’ total sales, higher than other natural grocery retailers (3%) and conventional grocers (0.5%), while sales of B Corp Certified products accounted for 8% of the average food co-op’s total sales, higher than other natural grocery retailers (6%) and conventional grocers’ (2%). NCG has been a certified B Corp, denoting its commitment to social and environmental sustainability, since 2011.

Among the international principles to which cooperatives adhere is cooperation among cooperatives, to demonstrate solidarity within the business model. As such, food co-ops prioritize products made by other co-ops, including dairy items, chocolate and coffee. Cooperatively produced products make up 5% of food co-ops’ total sales, higher than natural retailers (3%) and conventional grocers (1%).

Founded in 1999, St. Paul, Minn.-based NCG is a business services cooperative for retail food co-ops across the United States. It helps unify food co-ops to optimize operational and marketing resources, strengthen purchasing power, and ultimately offer more value to natural food co-op owners and shoppers everywhere. Its 161 member co-ops operate more than 230 storefronts in 39 states, with combined annual sales of $2.5 billion. Currently, more than 1.3 million U.S. residents belong to an NCG food co-op.