Organic Foods Market Analysis

Global Organic Foods Market Overview

Organic Foods Market Size was valued at USD 179.5 Billion in 2023. The Organic Foods industry is projected to grow from USD 202.7 Billion in 2024 to USD 535.0 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 12.90% during the forecast period (2024 - 2032). Increased consumer knowledge of the health advantages of consuming organic products and the increasing acceptance of non-GMO items, are the key market drivers enhancing the market growth.

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Organic Foods Market Trends

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  Increasing knowledge of the advantages of organic food intake for health is driving the market growth

  
  

Growing public awareness of the health advantages of consuming organic food is one of the main reasons propelling market expansion. The shift in consumer purchasing behaviour is expected to increase sales of organic foods and beverages. The market is expanding in part due to customers' growing preference for non-GMO products. Even though organic food is more expensive than non-organic alternatives and the global GDP fell by the most in decades in 2020, sales of organic food increased. Out of all the health and wellness categories, packaged foods and drinks that are organic grew at the fastest rate. Beginning in 2020, consumers changed their eating and drinking habits during the COVID-19 period when eateries were closed and home cooking replaced eating out. The United States Department of Agriculture (USDA) reports that German customers bought 22% more organic goods during the same period.

Due to customer demand for better overall health and increased awareness of the negative effects of synthetic substances, the market for organic ingredients has increased over the past few years. Due to the usage of synthetic chemicals in plants and animals, such as pesticides and antibiotics, conventional meals come with a number of health hazards. The production of organic goods has increased as a result of the rising demand. According to recent USDA projections, approximately 39 million acres, or 16 million hectares, will be under organic agricultural management in 2020. Government involvement in educating consumers about the distinction between products with fraudulent labels and genuine ones has also aided in the growth of the sector as a whole. Worldwide regulations prohibiting the use of chemicals, pesticides, growth hormones, and other synthetic compounds have also been established by governments. Additionally, the National Horticulture Mission (NHM) of the Indian government provides incentives to growers of organic food products in order to promote organic cultivation. In India, farmers are being awarded Rs. 10,000 per hectare for up to four hectares of land per beneficiary, as well as Rs. 5.00 lakh for a group of farmers covering 50 hectares of land.

The amount of essential minerals in the body increases when organic goods are consumed. Due to the increased sugar content in the produce compared to conventional food goods, there is a rising desire for organic food items as they aid to provide a superior flavour. The organic fruit products have a higher nutritional value. The use of organic food products lowers all heart-related health concerns because they don't include hydrogenated fat. When compared to other food products, the organic food products have a higher antioxidant concentration. Pregnant women who consume standard food products run the risk of harming their unborn children since the placenta can pass harmful chemicals from the mother to the child. Future health problems for the baby may result from it as well. The toxins are also linked to a number of birth abnormalities, such as autism. Thus, driving the Organic Foods market revenue.

Recent News :

In January 2024, Tata Consumer Products Ltd (TCPL) completed the acquisition of Capital Foods and Organic India, with the goal of broadening their organic food offerings within the Indian market

Organic Foods Market Segment Insights

Organic Foods Product Insights

The Organic Foods Market segmentation, based on Product, includes fruits and vegetables, dairy products, meat, fish, and poultry, frozen foods, and others. Fruits and vegetables segment accounted for the largest revenue share in 2022. The popularity of organic veggies first gained traction in industrialised regions like North America and Europe, and it has since spread to developing nations like China and India. The two continents that consume the most organic food are North America and Europe. Over the future years, it is projected that rising concerns about artificial preservatives and additives would accelerate the increase of product demand.

Organic Foods Distribution Channel Insights

The Organic Foods Market segmentation, based on Distribution Channel, includes online and offline. Offline segment dominated the Market of Organic Foods in 2022. These shops offer a wide range of both imported and native goods. Hypermarkets/supermarkets, specialty shops, franchisee shops and club shops are just a few of the physical retailers in the offline sector. The capacity of this distribution channel to supply well-known brands and the convenience it offers have been supporting the expansion of this market. Sales of organic foods and beverages through this channel are increasing as a result of an increase in the number of supermarket and hypermarket chains and changes in the retail environment, particularly in developing economies.

Figure 1: Organic Foods Market, by Distribution Channel, 2023 & 2032 (USD Billion)

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Organic Foods Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Organic Foods Market dominated this market in 2022 (45.80%). This is because the items have special benefits such being eco-friendly, free of chemicals and residues, and healthier than conventional food. In the near future, it is projected that rising consumer knowledge of the advantages of consuming non-genetically modified or altered products would drive the North American market. Further, the U.S. Organic Foods industry held the largest market share, and the Canada Organic Foods market was the fastest growing market in the North America region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: ORGANIC FOODS MARKET SHARE BY REGION 2023 (USD Billion)

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Europe Organic Foods market accounted for the healthy market share in 2022. People are more likely to eat organic foods now than ever before, especially fruits and vegetables, as concerns about the environment and animal welfare are on the rise. Fresh fruit and vegetables were the second-most popular organic product consumed in France in 2020, accounting for 17% of domestic organic product consumption, after supermarkets (31%) and according to AgenceBio, a French Agency for the Development and Promotion of Organic Agriculture. Further, the German Organic Foods industry held the largest market share, and the U.K Organic Foods market was the fastest growing market in the European region

The Asia Pacific Organic Foods market is expected to register significant growth from 2023 to 2032. This is due to both the expanding millennia in nations like India and the rising habit of ready-to-eat food among the working class. In terms of consumer spending on food, the three largest markets are China, India, and Japan. Additionally, a significant increase in the demand for frozen food as a result of less time available for preparation and cooking is creating new opportunities for organic frozen food in the local market. Moreover, China’s market of Organic Foods  held the largest market share, and the Indian Organic Foods market was the fastest growing market in the Asia-Pacific region.

Organic Foods Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Organic Foods market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Organic Foods industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Organic Foods industry to benefit clients and increase the market sector. In recent years, the Organic Foods industry has offered some of the most significant advantages to medicine. Major players in the Organic Foods market, including Newman’s Own, Inc., Whole Foods Market IP. L.P., Frito-Lay, Dole Food Co., Inc., The Kroger Co., Inc., Clif Bar & Company, Organic Valley, and Dean Foods, are attempting to increase market demand by investing in research and development operations.

Food and beverage products are produced and marketed by The Kraft Heinz Co. (Kraft Heinz). The company's product line consists of cheese and other dairy goods, meats, coffee, liquids for rehydration, sauces and condiments, meals made with beans and pasta, snack nuts, dressings, frozen food, soups, infant nutrition and other groceries and food items. Under the brand names Kraft, Heinz, ABC, Ore-Ida, Oscar Mayer, Philadelphia, Velveeta, and Maxwell House, Kraft Heinz sells its goods. The business offers its goods to wholesalers, cooperative and independent grocery stores, convenience stores, mass merchants, club stores, drug stores, value stores, bakeries, pharmacies, foodservice distributors, and numerous other institutions through independent brokers and distributors. Along with other countries, it operates in the US, Canada, and the UK. Pittsburgh, Pennsylvania, in the US, serves as the headquarters for Kraft Heinz. The purchase of Assan Foods by The Kraft Heinz Company from privately held Turkish company Kibar Holding was announced in June 2021. With this acquisition, the business hopes to broaden its market reach internationally while concentrating on improving food quality and service.

A family-run business, Amy's Kitchen Inc. (Amy's), produces pre-packaged vegetarian meals. The business sells frozen meals, including entrees, snacks, soup, pizza, burgers, burritos, pocket sandwiches, pot pies, and entire meals. Additionally, it provides a variety of supermarket products, such as salsas, pasta sauces, canned soups, beans, and chilli. In addition to other dishes, Amy's serves rice-crusted spinach and pesto pizzas, Chinese noodles in a cashew cream sauce, and Amy's Thai green curry. It produces and sells its goods under the Amy's brand. The business is active in both the US and Canada. The headquarters of Amy's are in Petaluma, California, in the US. A new pizza manufacturing plant will open in San Jose, California, in November 2020, according to an announcement by Amy's Kitchen, a producer of frozen organic meals and shelf-stable soups.

Key Companies in the Organic Foods market include

• Newman’s Own, Inc.


• Whole Foods Market IP. L.P.


• Frito-Lay


• Dole Food Co., Inc.


• The Kroger Co., Inc.


• Clif Bar & Company


• Organic Valley.


• Dean Foods

Organic Foods Industry Developments

June 2022: An Australian firm that specialises in infant nutrition has partnered with Amazon, one of the biggest e-commerce sites, to make its plant-based organic baby formula available to customers all over the nation.

Organic Foods Market Segmentation

Organic Foods Product Outlook

• Fruits and Vegetables


• Dairy Products


• Meat, Fish, and Poultry


• Frozen Foods


• Others

Organic Foods Distribution Channel Outlook

• Online


• Offline

Organic Foods Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America