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Product Launches and Business Expansions by Market Players such as Symrise, Nestle India, and Others to Foster the Growth of the Global Organic Food Market

In the past few years, the idea of swapping everyday food items with organic foods has grabbed a lot of attention, due to the growing awareness about the need to consume healthy foods and their benefits.

Organic foods are the most trending buzz in the food sector these days. Genetically modified organism (GMO)-free food content, nutrient richness, zero growth hormones & antibiotics, less usage of pesticides, enhanced level of freshness, and improved environmental permanence are major reasons for the rising adoption of organic foods.

Why is the Demand for Organic Food Rising?

A sudden surge in the health concerns among people and rise in awareness about the health benefits of organic foods have skyrocketed the sales of organic foodstuffs. Moreover, with the growing innovations and rising demand, the organic food sector is yet to experience a full-fledged evolution. Rise in the e-commerce platforms has performed as a catalyst for the organic food sector to reach out to people, and the statistics are only showing an upward drift ever since 2013.

Millennials are hunting for new choices for an improved lifestyle and healthier living which is also boosting the demand for organic foodstuffs. Moreover, the growing media coverage on organic food trends and healthy eating by bloggers on social media like Instagram – is inspiring people to adopt a healthy lifestyle.

COVID-19 Impact on Organic Food Market

The outbreak of COVID-19 across the globe has favorably impacted the global organic food market growth. This is majorly owing to the change in consumer purchasing patterns as they are becoming more aware about the importance of a strong immune system, which is leading to rising preference for organic and natural foods. Besides, there has been a paradigm shift in the organic food sector with consumers starting to buy more organic commodities as a preventative health measure. Thus, the coronavirus catastrophe has created a sudden rise in the demand for organic and sustainable foods. The sales of organic foods have seen a hefty increase all across the world during the pandemic period, due to the rising awareness among people about consuming healthy food.

Organic Food Market Trends and Developments

The Government of India is promoting and encouraging organic farming by offering financial support to farmers for adopting organic farming. Numerous government policies, such as National Food Security Mission (NFSM), Mission for Integrated Development of Horticulture (MIDH), Mission for Sustainable Agriculture (NMSA), and Rashtriya Krishi Vikas Yojana (RKVY) have been executed to encourage the organic food production. The Indian government has also executed the National Programme for Organic Production (NPOP) which includes approval programs for certification bodies, policies for organic production, promotional campaigns for organic farming, and many more.

Moreover, the key players of the market are adopting several growth strategies and business tactics such as partnerships, collaboration, business expansion, and product launches to obtain a leading position in the global industry, which is predicted to drive the global organic food market growth in the upcoming years. For instance:

  • As per the 2020 Organic Industry Survey released by the Organic Trade Association, people are consuming more organic foods and using more organic food items than earlier. In March 2019, Symrise, a major producer of flavors and fragrances, introduced a collection of certified organic, Non-GMO Project verified flavors mainly for millennial consumers.
  • In May 2019, Nestle India, the World's major food and beverage brand, announced its foray into the organic food sector.
  • In April 2020, Arla Foods Ingredients, a foremost whey ingredient provider for baking, infant nutrition, medical applications, dairy, and sports nutrition, introduced the first-ever organic micellar casein isolate for aiding manufacturers to cope with the demand for natural, organic, and functional protein foodstuffs.
  • In July 2020, Phalada Pure and Sure, India’s foremost organic food producer, developed an amusingly refreshing organic coconut water drink. This newly developed energizer is loaded with vital nutrients and a significant amount of calcium, potassium, electrolytes, and magnesium.

Forecast Analysis of Organic Food Market

The global organic food market is projected to witness an exponential growth over the forecast period, owing to the rising demand for organic poultry across the globe. Conversely, the short shelf life and high costs associated with organic food may hamper the market growth in the projected timeframe.

The growing awareness about health, fitness, and wellbeing drives, and the rising income level among people around the world are the significant factors and organic food market trends estimated to bolster the growth of the global market in the coming future. Moreover, the rising initiatives by big brands and government bodies to promote and support organic food production and consumption is predicted to thrust the organic food market growth in the near future.

According to a latest report published by Research Dive, the global organic food market is expected to garner $484.0 billion during the forecast period (2022-2030). Regionally, the Europe market is estimated to hold the majority of revenue share by 2030, owing to the increasing demand for clean label food & beverage products. Besides, Europe has the second highest proportion of organic agricultural land in the world which is driving the regional market growth.

The key players functioning in the global market include Organic Valley, Dole Food Co., Inc., Dean Foods, Newman’s Own, Inc., Frito-Lay, Whole Foods Market IP. L.P., Clif Bar & Company, and The Kroger Co., Inc.

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