Organic Food Market

GMI Research analysis indicates that the Organic Food Market size was estimated at USD 278 million in 2022 and is slated to register a single digit CAGR of 16.4% over the forecast period, and is projected to reach USD 935 million in 2030.

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Key Organic Food Market Drivers

Rising incidences of chronic diseases including diabetes, cancer, and cardiovascular diseases has increased the consumption of healthy foods, which is forecast to fuel the organic food market. In addition, the growing consumption of organic foods primarily because of the rising income level of the consumers, improving living standards, growing environmental concerns are projected to expand the market growth. Moreover, strategic governmental support to encourage the organic foods production because of the health benefits have propelled the organic food market growth.

Furthermore, increasing inclination among consumers to improve the overall health and the growing awareness pertaining harmful impacts of artificial ingredients such as antibiotics and pesticides will fuel the market growth. According to the USDA statistics, in 2020, nearly 39 million acres or 16 million hectares was allotted for organic agricultural management. The launch of no cholesterol, vegan, and gluten-free organic snacks for the consumption by individuals suffering from lactose-intolerance and celiac disease, are propelling the market growth. Factors like increasing awareness about the health benefits of organic food, rising sales of organic product because of changing customer behaviour, are expected to strengthen the market growth. Additionally, the growing environmental concerns have inclined manufacturers towards sustainable cultivation practices, like organic farming, which, in turn, is projected to have a positive impact on the market. However, as per the organic food market research, the high operational and production cost and shorter shelf life are likely to hinder the market growth during the forecast years. Additionally, the exclusive pricing of products restricting widespread customer adoption and confined choices from the product assortments are also restraining the market expansion.

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Product Type Segment Analysis

Organic fruits and vegetables segment is predicted to lead the market with the highest CAGR in the forecast period, owing to the rising health concerns. Increasing demand for vegetables and fruits that are free from fertilizers and harmful chemicals, will strengthen the segment’s growth. Moreover, the growing production for organic fruits and vegetable as they prohibit the use of chemical pesticides, chemical fertilizers, or chemical preservatives has propelled the market growth. Further, the increasing production of organic fruits and vegetables with the growing demand for several organic products are estimated to expand the organic food market share.

Organic beverages segment is poised to hold a larger share over the forecast period, owing to the growing demand for organic drinks over carbonated beverages because of the growing awareness of health benefits. Increasing drift towards veganism culture and its low-fat content is likely to boost the segment’s growth.

Distribution Channel Segment Analysis

Supermarkets/hypermarkets distribution channel is projected to witness a faster CAGR over the upcoming years, because of the availability of a wide range of products with captivating discounts. In addition, rising number of supermarket & hypermarket chains and changing retail landscape, primarily across the developing economies are increasing the sales of organic food via this channel.

On the other channel, the online distribution segment is forecast to witness a promising growth over the forecast period, majorly due to the growing drift towards online sales and subscriptions for organic products. Rising internet penetration and target marketing by several companies to reach the target audience will have a positive impact on the market growth. Further, the increasing adoption of online groceries and online food delivery platforms further boosts the market.

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Regional – Segment Analysis

Geographically, Asia Pacific is estimated to witness a higher CAGR over the forecast period, due to the growing demand for frozen food aided by the less cooking and preparation time needed. With the accelerating population of millennials and working population, the drift towards ready-to-eat food has increased, driving the regional growth. Factors including rising chronic diseases, changing lifestyles, strategic initiatives to encourage farmers to switch to organic farming, and increasing number of organic food producers obligated to comply with the international standards are projected to expand the regional growth. The advancements in biological farming techniques are likely to propel the Asia Pacific organic food market.

The growing prominence of organic food and drinks aided by the rising awareness about their health advantages has paved the way for North American organic food market. As per the Organic Trade Association, the U.S. is one of the largest markets for organic foods accounting for over half market share of organic products consumed globally. The rapid expansion of food and beverage industries is estimated to increase the demand for organic foods, driving the regional growth. Wide availability of farmlands for organic farming across the U.S., Australia, and Argentina has encouraged government to frame supportive policies to expand the production output of organic foods, which will propel the regional growth. Moreover, the unique features associated with the organic food such as chemical and residue-free, healthier alternative to traditional food, and environment friendly has driven the regional size.

Top Market Players

Various notable players operating in the market include Danone, Hain Celestial Group Inc., EDEKA Handelsgesellschaft Nord GmbH, General Mills Inc., SFM, LLC., United Natural Foods INC., Nature’s Path Foods, Inc., Amy’s Kitchen, Organic Valley, Newman’s Own, among others.

Key Developments:

• • In 2021, Tyson Foods, a leading American multinational corporation and the second-largest producer and processor of beef, chicken, and pork merged with General Mills Inc.. The strategy was intended to expand the portfolio growth, which will help the company to expand the business.
  • In 2021, Your Heart, a leading plant-based pioneer player was acquired by Danone. The acquisition intended to expand the business by launching several organic products to fulfil the growing consumer’s demand and maintain dominance over other players in the same segment.
  • In 2020, Amy’s Kitchen introduced the latest gluten-free pizzas packed with vegetables. The new Veggie Crust Pizzas crust is made from sweet potato, organic cauliflower, and broccoli topped with slow-simmered tomato sauce and mozzarella cheese. The pizzas are available in cheese and spinach varieties.

Segments Covered in the Report:

The global Organic Food market has been segmented based on Product Type, Distribution Channel, and key regions. Based on Type, the market is segmented into organic meat, poultry, and dairy, organic fruits and vegetables, organic processed food, and others.  Based on distribution channel, the market is segmented into hypermarket/supermarket, Convenience Stores, Specialty Stores, Online Stores, and others.

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 Key questions answered in this research report:

• • At what pace is global Organic Food market growing? What will be the growth trend in the future?
  • What are the key drivers and restraints in Organic Food market? What will be the impact of drivers and restraints in the future?
  • What are the regional revenues and forecast breakdowns? Which are the major regional revenue pockets for growth in the global Organic Food market?
  • What are the various product types of global Organic Food market and how they are poised to grow?
  • Which Product Type generated maximum revenues in 2022 and identify the most promising Types during the forecast period?
  • What companies are the major participants in this market and their business strategies, how does the competitive landscape look like?

Market Segmentation

Global Organic Food market by Product Type 

• • Organic Meat, Poultry, and Dairy
  • Organic Fruits and vegetables
  • Organic Processed Food
  • Others

Global Organic Food market by Distribution Channel 

• • Supermarket/Hypermarket
  • Convenience Store
  • Specialty Stores
  • Online
  • Others

Global Organic Food Market by Region

• • North America Organic Foods Market (Option 1: As a part of the free 25% customization)
    • By Product Type
    • By Distribution Channel
    • US Market All-Up
    • Canada Market All-Up
  • Europe Organic Foods Market (Option 2: As a part of the free 25% customization)
    • By Product Type
    • By Distribution Channel
    • UK Market All-Up
    • Germany Market All-Up
    • France Market All-Up
    • Spain Market All-Up
    • Rest of Europe Market All-Up
  • Asia-Pacific Organic Foods Market (Option 3: As a part of the free 25% customization)
    • By Product Type
    • By Distribution Channel
    • China Market All-Up
    • India Market All-Up
    • Japan Market All-Up
    • Rest of APAC Market All-Up
  • RoW Organic Food Market (Option 4: As a part of the free 25% customization)
    • By Product Type
    • By Distribution Channel
    • Brazil Market All-Up
    • South Africa Market All-Up
    • Saudi Arabia Market All-Up
    • UAE Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Market All-Up

Global Organic Food Leading Market Players (Option 5: As a part of the Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • Danone S.A.
  • The Hain Celestial Group Inc.
  • Edeka Group
  • General Mills
  • Sprouts Farmers Market
  • United Natural Foods Inc.
  • Nature’s Path
  • Amy’s Kitchen
  • Organic Valley
  • Newman’s Own