Report ID:
SQMIG30B2044 |
Region:
Global |
Published Date: November, 2024
Pages:
163
|Tables:
0
|Figures:
0
Global Organic Food Market size was valued at USD 224.02 Billion in 2022 and is poised to grow from USD 251.04 Billion in 2023 to USD 557.06 Billion by 2031, growing at a CAGR of 12.06% in the forecast period (2024-2031).
Organic food is defined as those products which are produced by organic production methods, and mainly using certified organic inputs rather than synthetic materials including chemical fertilizers, pesticides or feed supplements containing artificial growth hormones. Genetically unmodified organisms are used to raise a diverse range of healthy products from fruits and vegetables all the way through meat and grains. It serves as a healthy source of nutrients, vitamins, minerals, and antioxidants, helping to enhance cardiovascular functions, bolster immune defenses, maximize nutrient intake, and maintain energy levels. Compared to conventionally farmed farms, organic options are regarded as more health-promoting, fresh, natural, and eco-friendly since the practices preserve environmental quality.
Increased consumer awareness and points of entry to gain access to sustainable farming has led to heightened interest in the organic food sector. As noncommunicable diseases are reaching worrisome statistics, the population is now focusing on health and natural food items. At the same time, organic products are gaining a stronger footing in emerging economies while companies proliferate options, and green innovations propel sustained growth. Yet, high costs and inefficient settlements once hindered the industry but now partnering additional local vendors and engineering the growing have greatly minimized past restrictions. Furthermore, according to organic food market forecast supply will increase as wider population become more aware and more consumers reach for chemical-free options. This will be increasing the organic food market growth, if supported properly.
Global Market Size
Largest Segment
Fastest Growth
Growth Rate
CAGR
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The global organic food market is segmented into products, distribution channels, and region. Based on product, the market is segmented into fruits and vegetables, dairy products, organic meat, fish and poultry. Based on distribution channel, the market is segmented into online and offline. Based on Region, the market is segmented into North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa.
Analysis by Product
The fruit and vegetables segment composed a notable organic food market share in 2023, and it was anticipated to remain dominant throughout the predicted period. The nutritional worth of organic produce was the main impetus behind the global sector. It incorporates an abundant quantity of minerals, vitamins, fibers, and antioxidants compared to traditionally grown varieties. Numerous investigations have proven organic fruits and greens to be tastier than conventional ones. The pattern of organic vegetables originated in developed regions such as North America and Europe before spreading to emerging economies like India and China. North America and Europe are the primary customers of natural foods.
The organic meat segment is witnessing the fastest growth in the market, with an increasing organic food market size. Growing health awareness has increased focus on the health benefits of organic meat. A global rise in organic food consumption is expected to fuel demand for organic meat products. The increasing popularity of ethical and sustainable practices also creates new opportunities for suppliers. A higher number of providers gaining certification alongside an increasing percentage of consumers opting for these products can also drive some gains during the forecast period as well as thereafter. Again, meat must come from animals that were themselves raised organically with feed grown without synthetic fertilizers or growth promoters. In rural areas, however, sustenance continues to be a challenge given the cost of certification. Demand keeps increasing, but supply and affordability are still barriers to consumption. Industry growth in the future is dependent on addressing socioeconomic barriers to adoption at scale
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Analysis by Distribution Channel
In 2023, offline segment held a larger organic food market share with more than half of all product sales. Consumer choice varied from a basic domestic item to a high-end branded item in all categories offered by offline stores. Organic choices can be found across the spectrum, sitting alongside traditional options on specialty shop shelves, crowded supermarket aisles, and even corner general stores. While developed nations saw strong sales of organic foods, developing markets witnessed more restrained consumers. On the other hand, hypermarkets and supermarkets started to introduce different types of layouts and marketing to attract customers for organic. They reconfigured internal terrains and tweaked sales strategies to positively influence perceptions of anything natural. At the same time, conventional offline channels also regained emphasis on established marketing methods that further supported organic sales.
In terms of channel, the segment for online distribution is likely to experience strong growth in demand through 2023 with increasing organic food market size. Customers are leveraging the Internet and targeted ads to place orders for subscription boxes filled with organic produce delivered directly to their homes. There is a burgeoning trend of purchasing organically grown foods via online platforms as smartphone ownership and Internet access continue to rise worldwide. Consumers prefer express shipping that guarantees so much healthful due in a matter of days. After the pandemic hit, the demand for organic food and beverages sky-rocketed because people preferred to buy from online sellers who can lessen direct contact when delivering products.
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In 2023, North America had the largest organic food market share in terms of demand, while dominating the market. Demand for organic is also due to strong consumer interest in health across the United States, Canada and Mexico. Consumers gravitate toward fruits and veggies sporting the organic label for their absence of chemical pesticides, herbicides and fertilizers, as well as potential health benefits. The benefits of these chemical free, ecofriendly products including notable nutritional density and freedom from genetic modification have taken root in the public. Meanwhile, producers have swept into the sector, responding to consumers who increasingly grasp the value of natural foods. Though conventional agriculture maintains a substantial role, the natural market expands at a velocity that suggests more citizens will eat for wellness in the years ahead.
The evolving Asia Pacific organic food landscape is anticipated to witness the most robust expansion during the projection period propelled by escalating adoption of ready-to-consume fare among the bustling workforce as well as a youthful demographic notably in nations such as India. China, India, and Japan dominate consumer expenditure on victuals. Furthermore, a sizeable surge in demand for frozen meals owing to diminished time for preparation and cooking is unveiling novel paths for the regional organic frozen food market. The Asia Pacific region is expected to develop at an expeditious pace attributable to burgeoning consumer awareness of natural products, augmenting availability of organic options on retail shelves, and amplifying individual salaries. In addition, the mushrooming investments of international players in the local market are envisioned to buttress regional market growth.
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Drivers
Rise in Production of Organic Farming
Growing Health Awareness among People
Restraints
Rising Expenses of Organic Food
Restricted Shelf Life
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The global organic food industry is undergoing significant consolidation with prominent companies in developed and developing economies launching new products that build strong brand loyalty through their wide range of offerings and strong distribution channel presence. The organic food and beverage market has seen remarkable innovation, surging with novel products that incorporate sustainable practices through advanced production techniques and use of diverse ingredients. Both plant-based alternatives and eco-friendly packaging demonstrate how the industry continues evolving to meet consumer demands for choices that promote both health and environmental friendliness. Furthermore, the influx of new players entering the industry has brought a diversity of innovative products, especially to developing nations, stimulating further changes across the expansive landscape.
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SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the key driving factors bolstering a positive outlook for growth in the organic food industry are the rising health consciousness and awareness among consumers. Their heightened focus on wellness has led increasing numbers to opt for nutrient-rich, naturally sourced products due to recognized health benefits, thus fueling market expansion. The burgeoning popularity of organic fare can also be attributed to the growing global prevalence of chronic illnesses, such as various cancers, diabetes, and cardiovascular diseases. In addition, the debut of vegan, cholesterol-free, and gluten-free organic snacks that can be safely consumed by those with lactose intolerance or celiac disease are providing a fillip to market growth.
Report Metric | Details |
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Market size value in 2022 | USD 224.02 Billion |
Market size value in 2031 | USD 557.06 Billion |
Growth Rate | 12.06% |
Base year | 2023 |
Forecast period | (2024-2031) |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Customization scope | Free report customization with purchase. Customization includes:-
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Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
For the Organic Food Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Organic Food Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Organic Food Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Organic Food Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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Report ID: SQMIG30B2044
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