Global Organic Food & Beverages Market to grow at a CAGR of 12.07% to be valued at USD 361.90 Billion by 2027
Jun 04, 2023
Clifton, New Jersey, May 31, 2023 (GLOBE NEWSWIRE) -- Organic food and beverages have become more than just a passing fad—they're a major lifestyle trend that's here to stay. The term "organic" has gained much popularity in the last decade and refers to the process by which certain foods are produced. Organic food is grown without the use of synthetic chemicals, such as human-made pesticides and fertilizers, and does not contain genetically modified organisms (GMOs). The surge in demand for clean-label food and beverage products is expected to be a significant driver for the growth of the organic food and beverage industry. Consumers have become more conscious of the food or beverages they consume. They want to gain information regarding the ingredients of the food and beverages, their source, and the certifications of government authorities to ensure that every product is organic and sustainable. The rise in health consciousness among consumers exponentially increases the demand for sustainable food and beverages. Nowadays, organic farming methods are perceived as more environmentally friendly compared to conventional agriculture. Organic farms avoid or minimize the use of synthetic chemicals, reducing pollution of soil, water, and air. By choosing organic products, consumers support sustainable agricultural practices that promote biodiversity, soil conservation, and the preservation of ecosystems.
From plant-based milk alternatives and gluten-free snacks to cold-pressed juices and sustainably sourced coffee beans, the organic movement has expanded its reach to meet diverse dietary needs. It's not just about the absence of chemicals; it's about embracing holistic well-being and making conscious choices that positively impact our bodies and the planet. One such trend is the rise of "farm-to-table" and "farm-to-glass" practices, emphasizing the traceability and freshness of organic ingredients . Consumers are increasingly seeking out local, organic produce and artisanal products that connect them to the origins of their food and drinks. The organic market has witnessed significant innovation and product diversification. There is now a wide range of organic options available, including fresh produce, dairy products, beverages, snacks, and even organic packaged and processed foods. The availability of diverse organic product offerings appeals to a broader consumer base and drives market growth. In addition to that, many governments around the world are actively supporting organic farming practices through financial incentives, grants, and subsidies. These initiatives aim to promote sustainable agriculture, reduce chemical usage, and support the growth of the organic sector.
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There is room for innovation and diversification in the organic market. Developing new and exciting organic products , such as plant-based alternatives, organic snacks, functional foods, and beverages, is attracting consumers and driving the overall market growth. The popularity of plant-based diets and the demand for alternative protein sources continue to rise. The market has seen the introduction of a variety of plant-based meat substitutes, dairy alternatives, and plant-based protein powders, catering to the growing consumer interest in sustainable and cruelty-free options. The market has also witnessed a surge in organic snack options, including granola bars, chips, popcorn, and energy bars. Manufacturers are focusing on creating healthier, organic alternatives to traditional processed snacks to meet the demand for convenient and better-for-you options. In recent years, the growth of e-commerce has influenced the organic food and beverage market, enabling direct-to-consumer sales and increasing accessibility. Online platforms, subscription services, and meal kit delivery companies are offering a wider selection of organic products, providing convenience and reaching a broader consumer base. The market for organic baby food has experienced significant growth, driven by parents' desire to provide healthy and organic options for their infants and young children. Organic baby food brands are expanding their product lines to offer a wider variety of organic purees, snacks, and toddler meals. Earth's Best, Plum Organics, Happy Family Organics, Gerber Organic, Sprout Organic Foods, Beech-Nut Organic, Ella's Kitchen, and Peter Rabbit Organics are some well-known brands that specialize in organic baby food.
Regenerative agriculture practices, which focus on improving soil health and promoting biodiversity, are gaining attention in the organic market. Consumers are looking for organic products sourced from farms that implement regenerative practices, as they offer potential environmental benefits and contribute to sustainability. Busy lifestyles have fuelled the demand for organic convenience foods, including ready-to-eat meals, snacks, and pre-cut produce. Consumers are seeking organic options that offer convenience without compromising quality or healthfulness. Organic foods and beverages that are high in protein are in demand as they can provide sustained energy and support muscle recovery. Superfoods and functional ingredients are sought-after for their nutrient density and potential health benefits. Organic products incorporating ingredients like chia seeds, hemp seeds, spirulina, matcha, and turmeric offer a natural source of energy while providing additional nutritional value. Also, cold-pressed juices and smoothies made from organic fruits and vegetables are favored by those looking for a refreshing and energizing beverage. These products retain more nutrients compared to traditional juice processing methods, offering a natural and invigorating energy source. Consumers are increasingly seeking organic snacks that provide sustained energy while being mindful of ingredients and nutrition. Snack options like organic trail mixes, fruit and nut bars, and baked snacks made from whole, organic ingredients are preferred for their wholesome and energizing properties.
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With the increasing need for efficient and sustainable food production, there is a rise in vertical farming and controlled-environment agriculture. These methods allow for year-round organic cultivation in urban environments, reducing reliance on traditional farming practices and minimizing environmental impact. Also, the development of cellular agriculture techniques leads to the production of organic meat products without the need for traditional animal farming. Lab-grown meat has become a viable option, meeting the demand for sustainable and ethically sourced protein. There are major advancements in organic food preservation techniques that extend shelf life without compromising quality. This includes innovative methods such as high-pressure processing (HPP), pulsed electric fields (PEF), or natural antimicrobial agents to maintain the freshness and nutritional value of organic products. VR and AR technologies are also enhancing consumer experiences by providing virtual tours of organic farms, interactive product information, and immersive storytelling, helping consumers connect with the origins and production processes of organic food and beverages. On the other hand, blockchain technology has the potential to revolutionize supply chain transparency. By utilizing blockchain systems, consumers can access detailed information about the origin, production methods, certifications, and quality of organic products, ensuring greater transparency and trust. "Organic farming practices contribute to soil fertility, biodiversity conservation, and reduced chemical residues in food, making it a vital component of sustainable agriculture and food security," says Mr. Dhwipal Shah, Research Director with Bonafide Research.
Today's interest in organic may have intensified, but the organic industry's growing popularity is not new. Consumers are eating more organic food and using more organic products than ever before. Moreover, an increase in income levels, an improvement in standards of living, a growth in environmental concerns, and an increase in health hazards due to inorganic foods are some other driving factors in this market. Further, the demand for organic food is not limited to retail settings. The food service industry, including restaurants, cafes, and institutional food providers, has been incorporating more organic options into its menus. This trend is driven by consumer preferences for organic choices when dining out or ordering food. Organic food is not limited to crops. Organic livestock production is an important sector within the organic food industry. Organic livestock must meet specific welfare standards, such as access to outdoor areas, organic feed, and restrictions on the use of antibiotics and hormones. The organic food industry also includes organic aquaculture, which focuses on producing organic seafood and fish. Organic aquaculture standards require sustainable and environmentally friendly practices, such as using the organic feed, minimizing pollution, and ensuring animal welfare. Organic fruits and vegetables are among the most popular organic products. Consumers opt for organic produce due to concerns about pesticide residues and the desire for more natural and healthier options. Companies in the organic food market are focusing on the introduction of new product categories and varieties. Organic food manufacturers are coming up with new and innovative organic food products in the form of ready-to-eat snacks, cookies, organic tea, pulses, spices, edible flowers, frozen waffles, medical plants, herbs, and organic juices. For example, Lidl, an organic grocery chain, is coming up with 28 new and innovative organic food products to choose from.
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On the other hand, the organic beverage industry continues to innovate with new product offerings and flavor profiles. This includes unique blends, innovative ingredient combinations, and functional formulations to cater to evolving consumer preferences. Consumers are becoming more health-conscious and seeking alternatives to dairy products. Many people are adopting plant-based diets or reducing their dairy intake due to various reasons, such as lactose intolerance, allergies, ethical concerns, or environmental sustainability. Organic non-dairy beverages offer a viable option for individuals looking for nutritious and dairy-free alternatives. The rise in vegan and vegetarian lifestyles has contributed to the increased demand for non-dairy beverages. Organic non-dairy beverages, such as almond milk, soy milk, coconut milk, and oat milk, provide essential nutrients while being free from animal products. The market has also witnessed a surge in product innovation and variety in the organic non-dairy beverage segment. Manufacturers have developed new formulations and flavors to cater to different tastes and dietary preferences. However, organic coffee and tea have seen significant growth and popularity. Consumers appreciate the assurance of organic cultivation methods and the absence of synthetic pesticides. Fair trade and sustainable sourcing practices are often associated with organic coffee and tea.
The North American organic food and beverage market is estimated to grow due to high awareness about chemical-free food, the high prevalence of various chronic diseases like cancer, and the presence of a large number of leading supermarkets and hyper-smart chains such as Costco, Walmart, and plenty of others. Younger Americans are the ones who are eating at least some organic food and are more likely to believe that organic produce provides health benefits. Rising concerns about the environment and the health benefits associated with organic foods are mainly driving the North American organic food market. Furthermore, rising average household annual food spending, an increase in chronic diseases, greater accessibility of these products through small to medium-scale retailers, changing lifestyles, the implementation of initiatives to encourage farmers to switch to organic farming, a growing working-women population base, and an increase in the number of organic food manufacturers who also comply with international standards and label their products are all driving growth.
Europe has a large and growing consumer base that is increasingly conscious of health, sustainability, and food quality. Organic food and beverages are seen as a healthier and more environmentally friendly option compared to conventional products. Consumers in Europe are willing to pay a premium for organic products, which has contributed to the market's growth. The European Union (EU) has comprehensive regulations for organic farming and labeling. The EU organic logo ensures that products meet strict standards and requirements, giving consumers confidence in the authenticity and quality of organic products. Europe is a major exporter of organic products to other regions. European countries, such as Germany, France, and the Netherlands, have well-established organic sectors and export a wide range of organic products, including fruits, vegetables, dairy, and processed foods. The export of organic products contributes to trade opportunities and economic growth. Europe is a major exporter of organic products to other regions. European countries, such as Germany, France, and the Netherlands, have well-established organic sectors and export a wide range of organic products, including fruits, vegetables, dairy, and processed foods. The export of organic products contributes to trade opportunities and economic growth.
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The Asia-Pacific region has witnessed a significant increase in consumer awareness and demand for organic food and beverages. Factors such as health concerns, food safety issues, and environmental sustainability have driven consumers to seek organic products. As disposable incomes rise and urbanization progresses, more consumers are willing to pay a premium for organic options. The Asia-Pacific region has significant potential for organic farming due to its diverse climatic conditions and agricultural heritage. Countries like China, India, and Japan have large agricultural sectors and a history of traditional farming practices that can be leveraged for organic production. This potential allows for increased domestic supply and reduced reliance on imports. The organic food and beverage market has also given rise to organic tourism and ecotourism in the Asia-Pacific region. Organic farms and eco-friendly resorts attract tourists interested in experiencing sustainable agriculture practices and enjoying organic food experiences. This sector provides additional economic benefits to local communities and contributes to rural development.
South America possesses vast agricultural land and favorable climatic conditions that are conducive to organic farming. Countries like Brazil, Argentina, and Peru have substantial organic agricultural production, including organic fruits, vegetables, grains, and coffee. The region's rich biodiversity and traditional farming practices contribute to the growth of the organic sector. The organic food and beverage market in the Middle East and Africa region supports environmental sustainability. Organic farming practices focus on soil health, water conservation, and biodiversity preservation. These practices are especially crucial in arid regions where sustainable agriculture is essential for long-term food production. Governments in the Middle East and Africa region are gradually recognizing the potential of organic agriculture and implementing initiatives to support its growth. This includes providing training, education, and subsidies to farmers interested in transitioning to organic farming practices. Government support helps create a conducive environment for the development of the organic food and beverage market.
Considered in the Report
Table of Content
1. Executive Summary 2. Report Methodology 3. Market Structure 3.1. Market Considerate 3.2. Market Definition 4. Economic /Demographic Snapshot 5. Global Organic Food & Beverage Market Outlook 5.1. Market Size By Value 5.2. Market Share 5.2.1. By Region 5.2.2. By Country 5.2.3. By Company 5.2.4. By Type 5.2.5. By Product 18.104.22.168. By Organic Food Product 22.214.171.124. By Organic Beverage Product 5.2.6. By Sales Channel 5.3. Global Organic Fruits & Vegetables Market Outlook 5.4. Global Organic Meat, Fish & Poultry Market Outlook 5.5. Global Organic Dairy Products Market Outlook 5.6. Global Organic Frozen & Processed Food Market Outlook 5.7. Global Organic Non-Dairy Beverage Market Outlook 5.8. Global Organic Coffee & Tea Market Outlook 5.9. Global Organic Beer & Wine Beverage Market Outlook 5.10. Global Organic Food Policy Overview 6. North America Organic Food & Beverage Market Outlook 6.1. Market Size By Value 6.2. Market Share 6.2.1. By Country 6.2.2. By Type 6.2.3. By Product 6.2.4. By Sales Channel 6.3. US Organic Food & Beverage Market Outlook 6.3.1. Market Size By Value 6.3.2. Market Share 126.96.36.199. By Type 188.8.131.52. By Product 184.108.40.206. By Sales Channel 6.3.3. Rules & Regulations
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The global organic food market is projected to be valued at USD 326.40 Billion, growing at a CAGR of 11.81% during 2022–27. The demand for organic food is driven by several factors, including increasing health consciousness, concerns over food safety and quality, and a growing awareness of the environmental and social impact of food production. North America is the dominant region, driven by the well-established US market. The European organic food market is valued at over USD 60 Billion in 2021, with Germany & France being the major revenue-generating countries. One of the unique aspects of organic farming in the MEA region is the use of agroforestry systems, which will drive the future growth of organic food at a CAGR of 15.44%. Latin America is the smallest market for organic food due to a lack of government support and policies. The cost of organic certification can be a barrier for small and medium-sized farmers.
The global organic beverage market is anticipated to grow further at a CAGR of 14.71% to be valued at USD 35.50 Billion by 2027. The growth in recent years has been driven by increasing consumer demand for healthier and more sustainable drink options. Non-dairy juices are one of the largest segments, with popular flavors including orange, apple, and cranberry in North America . On the other hand, organic beer and wine are increasingly popular alternatives in the US. In the European organic beverage market, consumers are seeking organic, plant-based milk alternatives. The Asia-Pacific region accounts for the highest volume of organic non-dairy beverages, with USD 1.09 Billion in 2021.
The global halal food and beverage market was valued at USD 1691 Billion in 2021 and is further projected to grow at 7.50% during 2022–27. The market growth is driven by the Muslim population in the Asia-Pacific & MEA regions, with 90.55% of the revenue share. The halal food and beverage market in Latin America is relatively small compared to other regions, but it is growing rapidly at a CAGR of 8.46%. Many major food and beverage companies in North America & Europe have recognized the potential of the halal market and have started to offer halal-certified products to cater to this growing demand.
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