Organic Food and Beverages Market Revenue Forecast Report: Size, Share, Recent Trends, Strategic Developments, Segmentation Analysis, and Evolving Opportunities, 2023–2030

Market Overview

The organic food and beverages market size has been estimated at USD 225.8 billion in 2023, and it will grow at a rate of 12% during 2023–2030, to reach USD 499.5 billion by 2030. The main factor powering the expansion of the industry is the growing consciousness pertaining to the health advantages of organically processed food products. Their sale is also increasing because of the alterations in consumers’ purchasing behavior.

In addition, the increasing acceptance of non-GMO products amongst consumers and the easy availability of sustainably produced food are powering the growth of the industry. The demand for clean-label ingredients is rising because of the surging focus on health and the increasing awareness of the injurious effects of traditionally processed ingredients. Numerous health risks come with the usage of conventional foods because of the high usage of antibiotics and pesticides on animals and plants, respectively.

Furthermore, the participation of the government in helping consumers in understanding the difference among legitimate products and falsely labeled ones drives the market. The government of various nations also issued guidelines related to the use of synthetic fertilizers, growth hormones, and other chemicals and is promoting organic farming. Additionally, the evolution in farming practices has created a requirement for organic farming methods for maintaining the soil quality for a long time.

Increasing Disposable Income in Emerging Economies

One of the strongest drivers for the market is the rising disposable income, especially in developing countries. Claimed to be laden with nutrients and devoid of the capability to cause health issues, organic food and beverage products are generally priced higher than conventional ones. This is the reason their sales have been higher in Europe and North America till now. But, with the rising rate of urbanization and increasing spending power in APAC, LATAM, and the MEA, these products are gaining rapid popularity here too.

North America Leads Market, and APAC is Fastest-Growing

North America is the leader of the industry. This can be credited to the dietary changes and evolution in agricultural practices, to meet the growing requirement for organic products. The benefits of clean-label food, such as environment-friendliness, little-to-no presence of residue and chemicals, and healthier nature than traditional products ones drive the market. Additionally, the increasing knowledge of consumers of the benefits of non-genetically modified products will power the growth of the market in the region.

With this, the major players are concentrating on the launch of chemical-free food and beverages to enhance the health of people. For example, in July 2021, Neptune Wellness Solutions Inc., a health and wellness firm specializing in plant-based and sustainable lifestyle brands, debuted Sprout Organic Foods goods in Metro grocery stores across Ontario.

Moreover, the demand for organic food and beverages in APAC will grow the fastest over this decade. It is because of the augmenting acceptance of ready-to-eat products amongst the working class, along with the large gen X and Y populations in India. Additionally, with regard to the consumer spending on food, India, China, and Japan are the most-significant nations.

Furthermore, because of the growing consciousness of chemical-free products, India, Hong Kong, Singapore, and Taiwan are some of the major markets in the region. Further, a substantial growth in the requirement for frozen products, which can be cooked and served swiftly, is paving the way for new possibilities. APAC’s rapid market advance is also attributed to the increasing consumer income and voluminous export of such products from North America and Europe.

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Online Distribution To Grow Significantly

The supermarket/hypermarket category is dominating the market, based on distribution channel, as these stores have a wide variety of branded and private-label products. The changing retail landscape and growing count of supermarket and hypermarket chains, chiefly in developing nations, are boosting the sale of the organic food and beverages via this channel.

The online distribution channel will also undergo significant growth during this decade. The increasing usage of the internet and targeted marketing by companies will help in the progress of this category. The rapid rise in the usage of online food and grocery delivery platforms, in addition to the increase in the acceptance of smartphones, also propels the market.

Fruits and Vegetables Have Largest Revenue Share among Organic Food

Among all types of organic food products, fruits and vegetables are the most popular among people. Already an established trend in North America and Europe, clean-label fruits and vegetables are now becoming vastly popular in the APAC region.

Hence, Amul, a major dairy company, entered the organic food market of India with the launch of organic rice, honey, flour, potato products, and chocolates, in February 2022. It also plans to set up a ‘green college’ for educating young farmers about organic farming and set up stores for selling organic products.

Meats, fish, & poultry products will be the fastest-growing category due to the increasing concerns with regard to the artificial preservatives and additives in the meats, fish, and poultry products produced through traditional means. Conventionally, animals are given high doses of pharmaceuticals, growth promoters, and other hormones, which can lead to health issues in those who consume products derived from them.

In the same way, the demand for organic beverages will observe exponential growth in the years to come as consumers choose natural drinks over carbonated beverages, because of the former’s numerous health benefits. Within the organic beverages category, non-dairy beverages were the leader of the market in the past due to the growing acceptance of the vegan culture.

Additionally, the sales of sustainably grown and processed coffee and tea will observe the fastest growth, because of the increasing intake of flavored coffee and tea. Organic India launched two new variants of tea and infusions—Peppermint Refresh and Tulsi Detox Kahwa—in May 2022. Both the teas are vegan, organic, and available in the teabag and loose-leaf forms.

Key Players in Organic Food and Beverages Market

• THE HAIN CELESTIAL GROUP INC.
• Whole Foods Market L.P.
• Dole Food Company Inc.
• Dairy Farmers of America Inc.
• General Mills Inc.
• Danone S.A.
• United Natural Foods Inc.
• Gujarat Cooperative Milk Marketing Federation (Amul)
• The Hershey Company
• Amy’s Kitchen Inc.
• Organic Valley
• Conagra Brands Inc.
• Nestlé S.A.
• Eden Foods Inc.
• SunOpta Inc.