Need: To customize the display order of custom post type entries listed on a page by their custom taxonomy.

Solution: Deployed the following code on a page template in order to loop the custom taxonomies fora custom post type and display the post content.

$categories = get_terms('taxonomy_name_here', 'orderby=count&order=DESC&hide_empty=1');
 foreach( $categories as $category ): 
 ?>
 <h3><?php echo $category->name; // Prints the cat/taxonomy group title ?></h3>
 <?php
 $posts = get_posts(array(
 'post_type' => 'custom_post_type_name_here',
 'taxonomy' => $category->taxonomy,
 'term' => $category->slug,
 'nopaging' => true,
 ));
 foreach($posts as $post): 
 setup_postdata($post); //enables the_title(), the_content(), etc. without specifying a post ID
 ?>

 <div id="post-<?php the_ID(); ?>" <?php post_class(); ?>>

 <div class="entry-content"> 
 <?php the_content(); ?>
 </div><!-- .entry-content -->

 </div><!-- #post-## --> 
 <?php endforeach; ?>

<?php endforeach; ?>

The string “orderby=count&order=DESC&hide_empty=1” in the first line is used to order the taxonomy labels by count with the taxonomy containing the most entries on top and taxonomies with not posts are hidden from display on the page.

To reuse this code just replace the “taxonomy_name_here” and “custom_post_type_name_here” strings with the applicable values to your WordPress setup.

This code was deployed in WordPress 3.4.1.