The Global Organic Food Market Anticipated to Generate a Revenue of $484.0 Billion Growing at a CAGR of 11.77% from 2022 to 2030Download Sample Reports Overview
The global organic food market is estimated to be valued at $484.0 billion by 2030, surging from $168.5 billion in 2021, at a noteworthy CAGR of 11.77%.
Impact Analysis of COVID-19 on the Organic Food Market
The global market for organic food measurably experienced a positive growth during the COVID-19 pandemic. During COVID-19, when restaurants were shuttered and home cooking became the norm, customers adjusted their food purchasing and consumption patterns beginning in 2020. German customers purchased 22% more organic items in the same year, according to the United States Department of Agriculture (USDA). Also, according to a news article that is published by India.com, the emphasis on health and immunity had shifted in the Covid-19. In order to enhance immunity, people began looking for healthier alternatives. Organic was no longer a luxury, but rather a necessity. Moreover, organic food has risen to the top of people's priority lists as more people seek healthful alternatives.
Furthermore, there are certain key developments that took place in the pandemic. For instance, in November 2021, Bharat Biotech, the makers of blockbuster vaccines like Covaxin, launched "Ella Meals," a new start-up that specializes in processed organic foods. All such factors are predicted to positively impact the global organic food market amid the pandemic.
Global Organic Food Market Analysis
The enormous growth of the global organic food market is mainly attributed to increasing consumer spending on health. In recent years, consumers have begun to place a greater emphasis on their health, as well as the nutritional content and quality of the food they consume. Consumers are gradually beginning to migrate towards organic food as a result of their health concerns. Furthermore, in areas where consumers are aware of the safety and quality of organic products, the market is expanding because consumers are prepared to pay high costs. These types of aspects and elements are fueling the organic food market growth.
The shelf life of organic food is very low, which is predicted to hamper the market growth in the estimated period. Furthermore, costly packaging, shipping, and distribution costs to increase shelf life are some of the key issues may create a negative impact on the market during the forecast period.
The increasing popularity of online grocery shopping and the creation of new apps, both of which make it easier for consumers to select their desired products, will drive the global organic food market. Moreover, consumers prefer online shopping because of the convenience and variety it provides. In 2018, around 25% of the population bought food and consumables through online shopping channels, according to Eurostat. As the internet and smartphone usage grows, retail grocery shopping is becoming one of the platforms for enterprises to exhibit and sell their food commodities. Such technological advancements may further lead to lucrative market opportunities in the market in the upcoming years.
Global Organic Food Market, Segmentation
The global organic food market is segmented based on food type and region.
The food type segment is further classified into fruit & vegetables, meat, fish & poultry, dairy products, frozen & processed foods, and others. Among these, the fruit & vegetables type sub-segment is anticipated to have the dominant share and surpass $191.9 billion by 2030, with an increase from $68.0 billion in 2021.
Noncommercial uses of organic fruits and vegetables, such as direct consumption, have contributed significantly to market growth. The organic fruits market is expected to grow at a faster rate during the forecast period due to rising disposable income and increased awareness about the health benefits of eating organic fruits. According to an Indian Council for Research on International Economic Relations survey, the average daily fruit and vegetable intake is 3.5 servings, with 1.5 servings of fruits, and 2 servings of vegetables. All of these factors will drive sub-segment growth.
The organic food market in the Asia-Pacific region is projected to witness rapid growth. This market generated a revenue of $24.3 billion in 2021 and is further projected to reach up to $77.0 billion by 2030.
The demand for organic food is surging in the Asia-Pacific region specifically because of factors such as presence of several manufacturers of organic food. Also, food safety concerns are a major driver of growth in Asia, and China has had a string of food scandals including dairy products and infant formula, as well as rotten meats and sewage oil in food and others; such factors motivate consumers to adopt organic foods.
Furthermore, leading food and beverage firms in China, India, and South Korea have released organic products. This is backed up by significant government incentives. This is because an increasing number of Asian countries recognize the environmental and economic benefits of organic farming and are pushing the conversion to organic agriculture and food production. Most Asian countries have also established national organic food standards, as well as labelling and certification procedures. For example, APEDA (Agricultural and Processed Food Products Export Development Authority) India launched National Programme for Organic Production (NPOP), this program is related to certification bodies, organic production standards, organic agricultural promotion, and marketing, among other things. All such factors are anticipated to boost the market in the Asia-Pacific region.
Key Players in the Global Organic Food Market
Some of the leading global organic food market players are
- Organic Valley.
- Dean Foods
- Dole Food Co., Inc.
- Newman’s Own, Inc.
- Whole Foods Market IP. L.P.
- The Kroger Co., Inc.
- Clif Bar & Company, among others.