Demand for organic fruits and vegetables continues to surge as production and quality increase and more consumers see the benefits of going organic.

Highline Mushrooms, whose production is 100% organic, now has grocery clients who only stock organic.

“We truly believe in organic farming, and the retail market is catching up to that now,” said Kelsey Coon, marketing specialist.

While conventional mushroom sales at retail are declining, organic growth is up, Coon said, citing IRI/Mushroom Council data.

In the past 52 weeks ending in late October, sales across the US rose 3.7%. And the heart of the country is catching up to the coasts — organic mushroom sales in the Midwest climbed a whopping 26% over that period. (Sales of all organic produce items were up 1.9% over that period.)

Organic mushrooms made up 11% of total US mushroom sales in 2023, generating over $333 million in the past 52 weeks.

And while conventional mushroom sales dropped 4.2% over the past month, organic mushrooms saw dollar sales rise by 4.7% and volume sales increase by 12%.

Highline is so bullish on the future of organic mushrooms, the company recently announced plans to build a “farm of the future” in its hometown of Leamington, Ontario.

Set for completion by the end of 2025, the new facility — the largest farm investment ever made by Highline — will employ technology in new ways to increase yields and efficiencies and help workers, said Devon Kennedy, national marketing manager.

Robotics and other automation will be front and center, as will a Christiaens Drawer System where the drawers come to the harvesters, rather than the harvesters going to them, which is physically demanding. Data collection will be more sophisticated — ensuring, for instance, that water will be directed to the mushrooms that need it most.

“It’s a long-term investment to future-proof the business,” Kennedy said.

If this “farm of the future” is a success, Highline plans to build more of them, said Kelly Hale Dietz, vice president of sales, marketing and distribution.

Steady, year-round production

Higher production of organic mushrooms in Canada has a lot to do with the category’s growth in US grocery, Dietz said.

“In the past, US-based growers were faced with a hard time growing high-quality organic product. We’re able to produce very large quantities.”

That’s because Canadian growers like Highline are more likely to utilize the Dutch style of mushroom production, in which mushrooms are grown in tunnel-like enclosures rather than open beds, where mushroom growth is contaminated by the growth of other organisms. To fight that contamination, growers use chemicals that aren’t allowed in organic production.

With higher production, many retailers are able to offer organic mushrooms at a price not much higher than conventional, Hale said. Besides, price, she said, is very low on the list of what makes consumers choose which fresh mushroom product to buy. Quality and flavor are much more important.

Also important, particularly for younger consumers, is the sustainability and healthfulness of the mushrooms they’re buying.

“Part of our next challenge is how to get the message out about sustainability, nutrition and health,” Kennedy said.

To that end, Highline recently launched a new website and has added Pinterest posts to its usual posts on Meta.

Sixty percent of the Pinterest impressions were made among those aged 25 to 44, Coon said.

“We’ll continue to test campaigns like that,” she said. “We’re trying to make mushrooms and organics fun and approachable.”

Retailers are increasingly showing they’re on board, too, Kennedy said. Many are much more open to POS, QR codes and other instore marketing than they were in the past.