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Organic Food Market Report

RA00346

Organic Food Market by Food Type (Fruit & Vegetables, Meat, Fish & Poultry, Dairy Products, Frozen & Processed Foods, and Others) and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2022–2030

RA00346

Pages: 220

May 2022

COVID-19

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industries.

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Impact of covid-19 on Organic Food Market

Global Organic Food Market Analysis

The global organic food market size is predicted to garner a revenue of $483.0 billion in the 2022–2030 timeframe, growing from $168.5 billion in 2021, at a healthy CAGR of 11.7%. 

Global Organic Food Market Analysis

Market Synopsis

Rising awareness about organic food among people across the world is one of the factors that is projected to accelerate the growth of the organic food market. Moreover, rising public concern over the use of hazardous chemicals in agriculture & farming, as well as their detrimental health effects on consumers, has resulted in an increase in demand for organic foods globally. In addition to this, rising prevalence of chronic diseases such as cancer, diabetes, and cardiovascular diseases, infectious disease, as well as the burden of healthcare expenditure and the health-consciousness trend is driving consumers to adopt healthy and high-quality foods and beverages.

On the other hand, the high cost of production & operations, as well as the short shelf life is expected to limit market growth. Furthermore, expensive product cost is preventing widespread customer acceptance, and limited product selection possibilities are also limiting market expansion. All such factors are restricting the market growth of organic food.

According to the regional outlook, the North America organic food market is expected to create massive growth opportunities for market investors by growing at a CAGR of 12.7% during the review period owing to the presence of large number of retail shops such as Walmart, Costco, and many others.

Organic Food Overview

Organic food is being produced by various methods of farming without using any preservatives or chemicals. The term organic farming is referred to farming by using various organic techniques in the farm. Organic farming involves the use of natural fertilizers like manure to improve plant growth. Moreover, animals raised organically are not given any hormones for faster growth and are raised giving natural elements such as healthy diets. Furthermore, organic foods are in high demand in both the domestic and international markets due to their high nutritional content such as vitamins, minerals, fiber, carbs, and calcium abundant in fruits and vegetables; such aspects are expected to drive product demand.

COVID-19 Impact on Organic Food Market

The COVID-19 has had a significant impact on the organic food industry. Due to the uncertainty, consumer purchasing patterns have changed as consumers have become more aware of the importance of a strong immune system, resulting in a preference for organic and natural foods. Moreover, following the epidemic in 2020, there has been a paradigm shift in the organic food industry with consumers beginning to buy more organic commodities as a preventative health measure. This shift in mindset is expected to continue to fuel the organic food market's future growth. In fact, the organic food industry, particularly in fruit & vegetables, has expanded globally. Moreover, there are certain key players that have experienced demand for organic foods; for example, General Mills Inc., US based consumer goods company, revealed that they have experienced increase of 8% in net sales especially in organic food industry. All such aspects are expected to help boost organic food demand.

Increasing Awareness about Fitness, Health, and Wellbeing Drives the Organic Food Market Globally

Organic food is prepared without using any chemicals and therefore it means that the organic food restricts the use of chemical pesticides, preservatives, or fertilizer and is farmed using natural resources. Thus, they are considered as healthy food. Such factors will augment the market growth for organic food. Moreover, more people are accepting organic food due to the presence of multiple benefits, which is predicted to be the major driving factor for the global organic food market in the estimated period. Moreover, with the changing lifestyle, consumers are more concerned about their health, so they prefer organic food over other confectionary foods. In addition to this, improved distribution channel and rise in the income level among the population are predicted to be few of the biggest driving factors for the global organic food market in the estimated period.

Furthermore, to strengthen their portfolio offering in the industry, key market participants focus on strategies such as innovation and new product in the market. For instance, Amy's Kitchen, a manufacturer of frozen organic meals and shelf-stable soups, established a new pizza production plant in San Jose, California, in November 2020. Therefore, all such aspects and company developments are projected to gain traction for organic foods.

To know more about global organic food market trends, get in touch with our analysts here.

High Cost and Short Shelf Life of Organic Food Might Restrict the Global Organic Food Market Growth

Organic food production costs are often high due to increased labor inputs and a wider range of businesses. This raises the final retail price, which is expected to be the most significant limitation for the global market over the forecast period. Furthermore, organic food has a short shelf life, which is expected to limit market growth throughout the forecast period. Moreover, costly packaging, shipping, and distribution costs are stifling the organic food market’s expansion to increase shelf life.

Demand for Organic Poultry is Expected to Increase the Opportunities in the Organic Food Market

Organic poultry is a novel method of raising live stoke. Commercially grown poultry often contains artificial hormones, antibiotics, and tiny quantities of pesticides compared to organic poultry as organic poultry is free from any artificial constituents. Because the animals take up less area and grow to huge sizes relatively rapidly, organic chicken farming is considered as more beneficial than other forms of organic meat production. All such elements will accelerate the market growth of organic food market. Moreover, demand for health-beneficial items is increasing as people's lifestyles change around the world. Also, now-a-days, consumers are aware of the safety and quality of organic products, the market is expanding because consumers are prepared to pay high costs.

Furthermore, governments have initiated certain certifications to verify that each product is organic and sustainable. For example, according to Section 22 of the Food Safety Standards Act, 2006, the Food Safety and Standards Authority of India (FSSAI) is responsible for regulating the manufacture, distribution, sale, and import of "organic foods." Thus, such factors create an opportunity to gain major pull in the coming years for organic food market.

To know more about global organic food market opportunities, get in touch with our analysts here.

Organic Food Market
By Food Type

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Based on food type, the organic food market has been segmented into fruit & vegetables, meat, fish & poultry, dairy products, frozen & processed foods, and others of which fruit & vegetables sub-segment is projected to generate the maximum revenue during the forecast period. Download PDF Sample Report

Source: Research Dive Analysis

In 2030, the global fruit & vegetables organic food sub-segment will be worth more than $191.9 billion. Organic fruits and vegetable production prohibits the use of chemical pesticides, chemical fertilizers, or chemical preservatives. Increasing cultivation of various organic fruits and vegetables with the increase in the demand for various organic products across the globe is predicted to boost the sub-segment in the estimated period. Moreover, people have begun to export organic fruits and vegetables from high-producing countries like India and China to low-producing countries like Canada, Spain, and Japan as a result of online sales. Various online selling platforms, such as large basket, nature basket, I say organic, and org-pick in India have been acquiring significant appeal at both national and international levels. The increased use of internet-enabled smartphones, as well as the availability of such online organic fruits and vegetable selling platforms are expected to promote the growth of the organic fruits and veggies market during the forecast period.

 Global Organic Food Market Size & Forecast, By Region, 2021-2030 (USD Billion)

Organic Food Market
By Region

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The organic food market was inspected across North America, Europe, Asia-Pacific, and LAMEA.

Source: Research Dive Analysis

The Market for Organic Food in Europe to Hold the Maximum Revenue

Europe organic food market is anticipated to generate maximum revenue during the forecast time period and reach $183.9 billion by 2030, with a CAGR of 13.3%. Europe has the second highest proportion of organic agricultural land in the world, trailing only Oceania. Despite rising sales, organic production has yet to catch up with demand: organic farmland as a percentage of total farmland area in most European countries rarely exceeds 15%. Liechtenstein has the highest proportion of organic farmable land in Europe, accounting for more than 40% of total land area. Organic farming is rapidly expanding, with 17.1 million hectares of farmable land available in 2020. According to the analysis, the greatest driving driver for the Europe organic food market will be rising demand for organic food among people owing to adoption of healthy lifestyles and trend of organic diet on daily bases. In the forecasted timeframe, the existence of a large number of retail stores such as Walmart, Costco, and others is expected to offer greater growth opportunities for investors in the regional market.

Furthermore, increase in the demand for clean label food and beverage products in Europe might be a major driver of the Europe organic food industry growth. In Germany and UK, consumers are becoming more aware of the foods and beverages they eat. They want to learn about the ingredients in food & beverages along with their source and government certifications to verify that each product is organic and sustainable. All such factors are expected to drive the Europe organic food market and witness noticeable growth.

Competitive Scenario in the Global Organic Food Market

Product launches and mergers & acquisitions are common strategies followed by major market players.

Source: Research Dive Analysis

Some of the leading organic food market players are Organic Valley., Dean Foods, Dole Food Co., Inc., Newman’s Own, Inc., Whole Foods Market IP. L.P., Frito-Lay, The Kroger Co., Inc., and Clif Bar & Company, among others.

Aspect

Particulars

  Historical Market Estimations

  2020

  Base Year for Market Estimation

  2021

  Forecast Timeline for Market Projection

  2022-2030

  Geographical Scope

  North America, Europe, Asia-Pacific, LAMEA

  Segmentation by Food Type

  • Fruit & Vegetables
  • Meat, Fish & Poultry
  • Dairy Products
  • Frozen & Processed Foods
  • Others

  Key Companies Profiled

  • Organic Valley.
  • Dean Foods
  • Dole Food Co., Inc.
  • Newman’s Own, Inc.
  • Whole Foods Market IP. L.P.
  • Frito-Lay
  • The Kroger Co., Inc.
  • Clif Bar & Company

Frequently Asked Questions
 

A. The size of the global organic food market is expected to be $484.0 billion in the year 2030, growing from $168.5 billion in 2021.

A. The Kroger Co., Inc. and Clif Bar & Company are some of the key players in the global organic food market.

A. The Asia-Pacific region possesses great investment opportunities for investors to witness the most promising growth in the future.

A. Asia-Pacific organic food market is anticipated to grow at 14.38% CAGR during the forecast period.

A. New product development and strategic partnerships are the key strategies opted by the operating companies in this market.

A. Fruit and vegetables industry is expected to drive the growth of the organic food market in the next 5 years.

1.Research Methodology

1.1.Desk Research
1.2.Real time insights and validation
1.3.Forecast model
1.4.Assumptions and forecast parameters

1.4.1.Assumptions
1.4.2.Forecast parameters

1.5.Data sources

1.5.1.Primary
1.5.2.Secondary

2.Executive Summary

2.1.360° summary
2.2.By Type  trends

3.Market overview

3.1.Market segmentation & definitions
3.2.Key takeaways

3.2.1.Top investment pockets
3.2.2.Top winning strategies

3.3.Porter’s five forces analysis

3.3.1.Bargaining power of consumers
3.3.2.Bargaining power of suppliers
3.3.3.Threat of new entrants
3.3.4.Threat of substitutes
3.3.5.Competitive rivalry in the market

3.4.Market dynamics

3.4.1.Drivers
3.4.2.Restraints
3.4.3.Opportunities

3.5.Technology landscape
3.6.Regulatory landscape
3.7.Patent landscape
3.8.Market value chain analysis

3.8.1.Stress point analysis
3.8.2.Raw material analysis
3.8.3.Manufacturing process
3.8.4.Sales Channel analysis
3.8.5.Operating vendors

3.8.5.1.Raw material suppliers
3.8.5.2.Type manufacturers
3.8.5.3.Type distributors

3.9.Strategic overview

4.Organic Food Market, by Type 

4.1.Overview

4.1.1.Market size and forecast, by Type  

4.2.Fruit and Vegetables

4.2.1.Key market trends, growth factors, and opportunities
4.2.2.Market size and forecast, by region, 2020-2028
4.2.3.Market share analysis, by country 2020 & 2028

4.3.Meat, Fish and Poultry

4.3.1.Key market trends, growth factors, and opportunities
4.3.2.Market size and forecast, by region, 2020-2028
4.3.3.Market share analysis, by country 2020 & 2028

4.4.Dairy Products

4.4.1.Key market trends, growth factors, and opportunities
4.4.2.Market size and forecast, by region, 2020-2028
4.4.3.Market share analysis, by country 2020 & 2028

4.5.Frozen and Processed Foods

4.5.1.Key market trends, growth factors, and opportunities
4.5.2.Market size and forecast, by region, 2020-2028
4.5.3.Market share analysis, by country 2020 & 2028

4.6.Others 

4.6.1.Key market trends, growth factors, and opportunities
4.6.2.Market size and forecast, by region, 2020-2028
4.6.3.Market share analysis, by country 2020 & 2028

5.Organic Food Market, by Region

5.1.Overview

5.1.1.Market size and forecast, by region

5.2.North America

5.2.1.Key market trends, growth factors, and opportunities
5.2.2.Market size and forecast, by Type  , 2020-2028
5.2.3.Market size and forecast, by country, 2020-2028

5.2.4.U.S.

5.2.4.1.Market size and forecast, by Type  , 2020-2028

5.2.5.Canada

5.2.5.1.Market size and forecast, by Type  , 2020-2028

5.2.6.Mexico

5.2.7.Market size and forecast, by Application , 2020-2028

5.3.Europe

5.3.1.Key market trends, growth factors, and opportunities
5.3.2.Market size and forecast, by Type  , 2020-2028
5.3.3.Market size and forecast, by country, 2020-2028

5.3.4.Germany 

5.3.4.1.Market size and forecast, by Type  , 2020-2028

5.3.5.UK

5.3.5.1.Market size and forecast, by Type  , 2020-2028

5.3.6.France

5.3.6.1.Market size and forecast, by Type  , 2020-2028

5.3.7.Spain

5.3.7.1.Market size and forecast, by Type  , 2020-2028

5.3.8.Italy 

5.3.8.1.Market size and forecast, by Type  , 2020-2028
5.3.8.2.Market size and forecast, by Application , 2020-2028

5.3.9.Rest of Europe

5.3.9.1.Market size and forecast, by Type  , 2020-2028

5.4.Asia Pacific

5.4.1.Key market trends, growth factors, and opportunities
5.4.2.Market size and forecast, by Type  , 2020-2028
5.4.3.Market size and forecast, by country, 2020-2028

5.4.4.China

5.4.4.1.Market size and forecast, by Type  , 2020-2028

5.4.5.Japan

5.4.5.1.Market size and forecast, by Type  , 2020-2028

5.4.6.India 

5.4.6.1.Market size and forecast, by Type  , 2020-2028

5.4.7.South Korea

5.4.7.1.Market size and forecast, by Type  , 2020-2028

5.4.8.Australia 

5.4.8.1.Market size and forecast, by Type  , 2020 2028
5.4.8.2.Comparative market share analysis, 2020 & 2028

5.4.9.Rest of Asia Pacific

5.4.9.1.Market size and forecast, by Type  , 2020-2028

5.5.LAMEA

5.5.1.Key market trends, growth factors, and opportunities
5.5.2.Market size and forecast, by Type  , 2020-2028
5.5.3.Market size and forecast, by country, 2020-2028

5.5.4.Latin America  

5.5.4.1.Market size and forecast, by Type  , 2020-2028

5.5.5.Middle East 

5.5.5.1.Market size and forecast, by Type  , 2020-2028

5.5.6.Africa

5.5.6.1.Market size and forecast, by Type  , 2020-2028

6.Company profiles

6.1.Organic Valley

6.1.1.Company overview
6.1.2.Operating business segments
6.1.3.Type  portfolio
6.1.4.Financial Performance
6.1.5.Recent strategic moves & developments

6.2. Dean Foods

6.2.1.Company overview
6.2.2.Operating business segments
6.2.3.Type  portfolio
6.2.4.Financial Performance
6.2.5.Recent strategic moves & developments

6.3.Dole Food Co., Inc.

6.3.1.Company overview
6.3.2.Operating business segments
6.3.3.Type  portfolio
6.3.4.Financial Performance
6.3.5.Recent strategic moves & developments

6.4.Newman’s Own, Inc.

6.4.1.Company overview
6.4.2.Operating business segments
6.4.3.Type  portfolio
6.4.4.Financial Performance
6.4.5.Recent strategic moves & developments

6.5.Whole Foods Market IP. L.P.

6.5.1.Company overview
6.5.2.Operating business segments
6.5.3.Type  portfolio
6.5.4.Financial Performance
6.5.5.Recent strategic moves & developments

6.6.Frito-Lay

6.6.1.Company overview
6.6.2.Operating business segments
6.6.3.Type  portfolio
6.6.4.Financial Performance
6.6.5.Recent strategic moves & developments

6.7.The Kroger Co., Inc.

6.7.1.Company overview
6.7.2.Operating business segments
6.7.3.Type  portfolio
6.7.4.Financial Performance
6.7.5.Recent strategic moves & developments

6.8. Clif Bar & Company

6.8.1.Company overview
6.8.2.Operating business segments
6.8.3.Type  portfolio
6.8.4.Financial Performance
6.8.5.Recent strategic moves & developments

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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