The organic foods market is likely to record a 12.1% CAGR during the forecast period. The market is likely to reach USD 176.51 billion in 2023 and is expected to be worth USD 553.13 billion in 2033.
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Cultivating organic farming is more expensive than conventional farming. Therefore, high organic food prices are generated, which may restrain the market growth. In addition, the growing labor prices, low crop yield, and rising production costs are other factors that cause a decline in market growth in several developing countries.
During storage and delivery, organic food & vegetables are not preserved carefully. leading to the spoilage of the products, which limits the sales of organic foods. Besides, green and leafy vegetables have a short life span that impacts market growth.
The key companies present various organic products that capture consumers' attention and drive market growth. The increasing adoption of organic foods, including vegan, organic, traditional, and other healthy food items, is fueling the market size. In addition, top companies are endorsing their products with athletes, famous faces, and celebrities to maintain their brand reputation, increasing market trends. In November 2021, the United States-based start-up Amara Organic Foods raised a USD 12 million fund to expand its organic foods product business for infants.
| Attributes | Details |
|---|---|
| Market CAGR (2023 to 2033) | 12.1% |
| Market Valuation (2023) | USD 176.51 billion |
| Market Valuation (2033) | USD 553.15 billion |
Principal Consultant
According to Future Market Insights, the global organic foods market is expected to register a healthy 12.1% CAGR during the forecast period. Historically, the market recorded a CAGR of 11.2% between 2017 and 2022.
The increasing supply chain and distribution channels, such as convenience stores, supermarkets/hypermarkets, and specialty stores, are driving market growth. In addition, the growing retail sales of organic foods are upsurging the market growth during the forecast period.
In 2020, due to outbreaks of COVID-19 situations, the rising demand for organic foods was rapidly growing due to health consciousness and proper nutrient intake. Due to the spreading of illness and the increasing patient population, demand for these products surged worldwide. In April 2020, the United Kingdom-based Abel & Cole Ltd increased its 25% of organic food orders.
Short Term (2023 to 2026): Increasing demand for standardized products, rapid urbanization, and population are increasing the adoption of organic foods.
Medium Term (2026 to 2029): Growing demand for preserved and processed foods, emerging technologies, and changing consumer preferences drive market growth.
Long Term (2029 to 2033): Increasing government support, new market entrance, and huge investments drive organic foods market opportunities
The market is estimated to reach USD 553.15 billion during the forecast period. Historically, the market stood at USD 172.06 billion from 2017 to 2022.
Based on category, the fruits & vegetables segment dominates the global market by capturing higher revenue during the forecast period. Rising demand for healthy lifestyles, better nutrients, and the adoption of fruits & vegetables fuel market growth. Consumers prefer rich vitamins, fiber, and minerals by consuming organic fruits and vegetables to maintain their fitness and diets.
Several studies proved that consuming fruits & vegetables through organic farming is healthier and tastier. In addition, the increasing demand for dairy and clean-label packed food products in developing countries pushes market growth. In 2020, the United States Department of Agriculture announced that the advertising of organic dairy retail surged by 110% in the last few years.
Based on product type, the market is segmented into processed and unprocessed foods. Unprocessed foods lead the global market by securing a maximum share during the forecast period. Rising consumer preferences for convenience and fresh products are fueling unprocessed food items.
High-quality products such as vegetables, meat, dairy, grains, fruits, and cereal are rich in nutrients and are increasing the adoption of unprocessed foods. In addition, these products contain low sugar, maintain a healthy heart, and improve skin allergies are advancing the market size.
Based on distribution channels, supermarkets/hypermarkets secure a significant share of the global market by 2033. The availability of various food products of different brands attracts consumers' attention to visit supermarkets/hypermarkets. Moreover, many consumers prefer to visit there to buy vast products during weekends, expanding the market revenue. In addition, getting discount vouchers and low-price or buy-one-get-one offers attracts customers and uplifts the market.
Online retail stores are another distributor channel that secures a better growth rate due to internet penetration all around the globe. The consumers or buyers are easy to engage by installing shopping applications and easy to enjoy home delivery products. The prominent vendor investment and collaborations with online retail stores such as Walmart, Flipkart Grocery, and Amazon are uplifting the sales of organic foods.
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The United Kingdom is anticipated to capture a significant global market share by 2033. Increasing consumer demand for healthy lifestyles and premium quality foods is driving market growth in the United Kingdom. In addition, the rising consumption of fresh, natural foods due to increasing environmental and animal welfare concerns are advancing the United Kingdom organic foods market. According to AgenceBio, France consume around 17% of organic foods at home and 31% from groceries.
Growing rapid urbanization, online distribution channel, and the presence of key manufacturers are expanding the market growth in the United Kingdom. In addition, increasing government initiatives, trends, and research & development activities are flourishing the market expansion in the country.
The United States is anticipated to secure a significant share during the forecast period. The increasing demand for health-conscious diets and organic food consumption influence market growth. However, the increasing organic farming, natural food production, and demand for clean-label food products are upsurging the United States organic foods market.
In the United States, people adopt organic farming to reduce pesticides, fertilizers, and hazardous food product items to welcome a healthy and better lifestyle. According to Organic Trade Association, in 2021, the sales of beverages and baby food category increased by 8% and 11%, respectively. The new market entrance and advanced food storing technologies are propelling the market size in the country.
India is one of the rapidly growing markets in the Asia Pacific region, which capture a maximum share during the forecast period. The availability of organic food products and growing awareness drive the Indian organic foods market size. Moreover, rising investments, the presence of international vendors, and research & development activities are further fueling the market expansion.
The rising distribution channels, supply chains, and key players focus on preserving organic food to enhance their shelf-life by adopting advanced technologies. In May 2019, Nestle S.A. launched its organic food products under the Ceregrow brand. In addition, the company launched organic cereal products for children from rice, ragi, and wheat, fueling the Indian market. Other Asian Countries such as China, Japan, and South Korea also secure a significant global market share.
The market is fragmented by several key players all around the globe. The market players are focused on providing highly standardized and better quality frozen and packed foods with their innovative advanced technologies. In addition, these players provide natural products to upsurge their brand reputation. Therefore, the key players invest a considerable amount in research and development activities to provide highly standardized fresh products for consumers door steps.
Through online distribution and retail shops, the key players expand massive revenue in the market. Moreover, their adoption of marketing strategies is anticipated to propel the market to another height in the coming years. The market strategy includes mergers, agreements, acquisitions, partnerships, collaborations, and product launches.
Recent Developments in the Market:
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2017 to 2022 |
| Market Analysis | USD billion for Value |
| Key Countries Covered | United States, Canada, Germany, United Kingdom, France, Italy, Spain, Russia, China, Japan, South Korea, India, Thailand, Malaysia, Indonesia, Australia, New Zealand, GCC Countries, Türkiye, Northern Africa, and South Africa |
| Key Segments Covered | Category, Product Type, Distribution Channel, Region |
| Key Companies Profiled | Eden Foods Inc; General Mills Inc; Organic Valley; Danone S.A.; Amy’s Kitchen Inc; Hain Celestial Group Inc; SunOpta Inc; Arla Foods Amba; Dole Plc; Organic India Pvt Ltd |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
Growing consumers' healthy consciousness and adopting organic farming drive market growth.
Cultivating organic farming is more expensive than conventional farming. Therefore, high organic food prices are generated, which may restrain the market growth.
The market expanded at a CAGR of 11.2% from 2017 to 2022.
The popularity of clean-label products, frozen packed, and processed foods drives market demand.
Based on category, the fruits & vegetables segment dominates the global market by capturing higher revenue during the forecast period.
1. Executive Summary | Organic Foods Market 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Product Type 5.1 Organic Meat 5.2 Organic Poultry & Dairy 5.3 Organic Fruits & Vegetables 5.4 Organic Bread & Bakery 5.5 Organic Beverages 5.6 Organic Processed Food 5.7 Other Organic Products 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 6.1 Conventional Retailers 6.2 Natural Sales Channels 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Distribution Channel 7.1 Supermarkets/Hypermarkets 7.2 Convenience Stores 7.3 Specialty Stores 7.4 Online Retail Stores 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 8.1 North America 8.2 Latin America 8.3 Europe 8.4 Asia Pacific 8.5 MEA 9. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Key Countries Market Analysis 15. Market Structure Analysis 16. Competition Analysis 16.1 General Mills Inc. 16.2 Cargill, Inc. 16.3 Danone 16.4 United Natural Foods Inc. 16.5 Amy’s Kitchen 16.6 Newman’s Own, Inc. 16.7 Whole Foods Market 16.8 Dole Food Co. 16.9 The Kroger Co., Inc. 16.10 Dean Foods 17. Assumptions & Acronyms Used 18. Research Methodology
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Organic Foods Market
