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The organic food and organic beverages market is growing at a significant rate, due to government regulations supporting the organic food and beverages, changing consumer perception towards organic food, and widening distribution channels. The increasing research and development activities for new products development are providing ample opportunities to the organic food and organic beverages market to grow, in the coming years. However, high cost issues of organic food and beverages, as compared to conventional food and short shelf life are some of the factors, restraining the growth of the organic food, and organic beverages market.
Consumers are shifting towards organic food and organic beverages, due to increasing focus on health issues. The companies of organic food and organic beverages are launching wide range of organic products. Organic soy sauce, bamboo tea, and biological milk are some of the organic foods and beverages that became popular, within the consumers in a short range of time.
Organic foods are grown without the usage of additives, synthetic chemicals, coloring agents, and genetic radiation in the organic farm. In the U.S., the organic food and beverages have to satisfy the criteria set by National Organic Program, conducted by U.S. department of agriculture (USDA). Some of the raw materials used in producing organic food and organic beverages are spring wheat, corn, soybean, and oats. The standards for organic food and organic beverages vary from country to country, but in general, organic farming features biological, mechanical and cultural practices to promote ecological balance, increases cycling of resources and conserve biodiversity.
Conventionally, North America and Europe were leading the organic food and organic beverages market. But, with the increase in demand of the organic food and organic beverages from China, Brazil, India, Mexico, and Argentina, manufacturers are expanding their business in these countries. The Asia-Pacific organic food and organic beverages market is expected to grow, with the highest rate in the coming years, due to growing affinity and awareness for organic ingredients, and growing green consciousness in the region.
On the basis of products, the organic food market can be categorized as organic fruits and vegetables, organic frozen and processed food, cereals, packaged groceries, organic dairy products, and organic meat, fish and poultry products. Organic fruits and vegetables category leads among the types of organic food market, and organic meat, fish and poultry products category is expected to grow, with the highest rate in the coming years. Organic dairy products category is also expected to grow significantly in the coming years, due to advancement in technologies, which helps in extending shelf life of the products.
On the basis of products, the organic beverages market can be categorized as organic coffee and tea, organic non-dairy beverages, and organic beer and wine. Organic beer and wine category is expected to grow with the highest rate, among the types of organic beverages market in the coming years. The organic food and beverages market can also be categorized, on the basis of distribution channels as convenience stores, hypermarkets and supermarkets, online retailers, and food specialists.
Some of the competitors in the organic food and organic beverages market are Amy's Kitchen Inc., The Coca-Cola Company, Kellogg Company, Dean Foods Company, The Hain Celestial Group Inc., Danone SA, Whole Foods Market Inc., Kraft Foods Group Inc., Starbucks Corporation, Nestle SA, and Organic Valley Ltd.