The global organic foods market size was valued at USD 140.46 billion in 2021 and USD 157.48 billion in 2022. The market is expected to reach USD 366.66 billion by 2029 with a CAGR of 12.83% during the forecast period. Increasing health consciousness in consumers is predicted to boost the demand for the products. Rise in the levels of income allows consumers to buy such products which is set to drive market growth. Celebrity endorsement and fund raising activities are expected to propel the market course. Evolving agriculture farming is expected to facilitate market development for organic foods. Fortune Business Insights™ shares this information in its report titled “Organic Foods Market, 2022-2029.”
List of Key Players Profiled in the Report
- General Mills Inc. (U.S.)
- Danone S.A. (France)
- Dole plc. (Ireland)
- Organic Valley (U.S.)
- Organic India Pvt. Ltd. (India)
- Amy’s Kitchen, Inc. (U.S.)
- Arla Foods Amba (Denmark)
- Eden Foods Inc (U.S.)
- Hain Celestial Group, Inc. (U.S.)
- SunOpta Inc (U.S.)
Fruits & Vegetables to Lead Due to Increasing Nutritional Values
On the basis of the category, the market is divided into fruits & vegetables, dairy, meat, fish, & poultry, frozen & processed foods, cereals & grains, beverages, and others. Fruits & vegetables segment is anticipated to have the largest part due to its nutritional value and presence of various minerals, vitamins, fibers, and antioxidants.
Unprocessed Foods to Govern the Segment Owing to its Convenience
Based on product type, the market is categorized into processed and unprocessed. Unprocessed organic foods are expected to have a major part owing due to their fresh-like appearance and convenience associated with these foods.
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Supermarkets/Hypermarkets to Lead the Segment Due to Wide Range of Products
Based on distribution channel, the market is divided into supermarkets/hypermarkets, specialty stores, convenience stores, online retail stores, and others. Supermarkets/hypermarkets segment is expected to have a major part as it offers a wide range of brands and product varieties in a single place.
The report provides a detailed analysis of the top segments and the latest trends in the market. It comprehensively discusses the driving and restraining factors and the impact of COVID-19 on the market. Additionally, it examines the regional developments and the strategies undertaken by the market’s key players.
Drivers and Restraints
Evolving Farming Practices to Drive Market Development
Increasing and evolving farming practices due to the wide availability of chemical fertilizers and pesticides are anticipated to drive the organic foods market growth. Increasing practices that affect the environment due to the use of hazardous chemicals in agriculture are expected to drive market growth. An emerging trend of organic farming globally increases the product availability and makes it more affordable. An increasing number of product launches by the market players is expected to push market growth.
However, high prices and limited shelf life of the organic foods are expected to impede market growth.
Europe to Lead Market Share Owing to Increasing Environmental and Animal Concerns
Europe is anticipated to head the organic foods market share due to growing environmental and animal welfare concerns which inspire individuals to consume organic products such as fruits and vegetables. According to AgenceBio, a French Agency for the Development and Promotion of Organic Agriculture stated that in the year 2020, fresh fruits & vegetables was the second leading organic product consumed in France with 17% of organic consumption at home, followed by groceries (31%).
North America is anticipated to be one of the major regions for this market due to increasing awareness for health amongst consumers and adoption of organic foods. There has been an increasing demand and preference in various countries such as Canada, the U.S., and Mexico. According to the Organic Trade Association (OTA), the dollar sales growth of organic baby food category in the U.S. was increased by 11%, which was followed by the beverages segment with 8% in 2021.
New Product Offerings by Key Market Players to Set Market Course
Major players in the market have been offering a wide range of product offerings, new product launches, and brand loyalty in developed and developing countries. The entry of new players in the market with innovative products has boosted market growth. In May 2022, Amul announced that it will add a new organic food product portfolio by launching a range of products such as organic whole wheat atta, moong dal, tur dal, chana dal, and basmati rice.
Key Industry Development
May 2022- Barry Callebaut announced its expansion of plant-based product portfolio with the addition of dairy-free organic chocolate to serve its consumers across North America. Barry Callebaut is a Belgian-Swiss cocoa processor and chocolate manufacturer.