Organic Food And Beverages Market Size, Share & Trends Analysis Report By Product (Organic Food, Organic Beverages), By Distribution Channel (Convenience Stores, Specialty Stores), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global organic food and beverages market size was estimated at USD 208.19 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 11.7% from 2023 to 2030. One of the primary factors driving market expansion is growing awareness about the health benefits associated with the consumption of organic products. Sales of organic food and beverages are projected to rise as a result of the change in purchasing behavior of consumers. In addition, the rising popularity of non-GMO products amongconsumers is driving market growth.The market has witnessed substantial growth due to the increased accessibility of organic foods and beverages. Organic products are no longer confined to niche stores or farmers' markets.

They have become readily available in mainstream supermarkets, online retailers, and even fast-food chains. This expanded distribution has made it convenient for consumers to include organic options in their regular shopping habits. In addition, there is a growing awareness and concern surrounding the environmental impact associated with conventional agricultural practices. These practices often contribute to issues, such as soil degradation, water pollution, and the loss of biodiversity. In contrast, organic farming methods prioritize sustainable practices aimed at promoting soil health, conserving water resources, and preserving wildlife habitats. This strong emphasis on environmental sustainability resonates with an increasing number of consumers who actively seek out products that align with their values of sustainability and ethical consumption.

The demand for organic ingredients has grown over the past few years owing to the desire for improved overall health among consumers and the awareness regarding the harmful effects of synthetic ingredients. Several health risks are associated with the use of conventional foods, owing to the presence of synthetic chemicals, such as pesticides and antibiotics, in animals and plants respectively. In addition, government participation in helping consumers to understand the difference between falsely labeled products and legitimate ones has also contributed towardoverall market development. The government in some parts of the globe has also issued certain guidelines barring the use of chemicals, pesticides, growth hormones, and other synthetic chemicals to promote the cultivation of organic products.

Moreover, the government in India is encouraging organic farming by offering incentives to cultivators of organic food products under the National Horticulture Mission (NHM) at Rs. 10,000/- per hectare for a maximum area of four hectares per beneficiary and organic farming certification at Rs. 5.00 lakh for a group of farmers covering an area of 50 hectares in India.The negative impact of conventional farming practices has far exceeded its positive results. Water contamination in oceans is one of the after-effects of conventional farming in addition to pesticide-resistant pests, degrading soil fertility, rampant human diseases, expensive cleanups, and dead zones. Regulatory support for biological farming and supply trade regulations are expected to have a positive influence on market growth over the long term.

The intensification of the traditional farming system has generated a need for organic farming methods to maintain healthy soil in the long run. However, the high cost of production and operations and shorter shelf life are projected to constraint the market growth over the forecast years. Moreover,premium pricing of products limiting widespread customer acceptance and limited options to choose from the product assortments are hampering the market expansion. High packaging, logistics, and distribution costs to extendshelf life are also restricting marketgrowth.

Product Insights

The fruits and vegetables segment emerged as the leading segmentin 2022 and accounted for a share o 40.2% of the overall revenue. The trend of organic vegetables was initiated in developed regions including North America and Europe and has extended to emerging economies, such as India and China. North America and Europe are the largest consumers of organic foods. The consumption of organic meat, fish & poultry products is predicted to register the highest CAGR of 13.4% by 2030. Increasing concerns regarding artificial preservatives and additives are anticipated to augment the product demand over the forecast years.

The organic beverages segment includes non-dairy beverages, coffee & tea, beer & wine, and others including juices and soft drinks. The organic beverages segment is poised to grow exponentially as consumers opt for natural drinks over carbonated beverages owing to various health benefits. Non-dairy beveragesled the segment in 2022. Increasing adoption of vegan culture is also likely to boost segment growth. Coffee & tea sales are likely to observe the highest CAGR of 14.5% from 2023 to 2030 due to the high consumption of flavored tea and coffee.

Distribution Channel Insights

The supermarket/hypermarket distribution channel segment accounted for the largest share of over 60.0% in 2022. These stores have a broad portfolio of branded as well as domestic products. Some of the brick-and-mortar stores provided by this distribution channel and its ability to stock popular brands have been supplementing the growth of this segment. The increasing number of supermarket & hypermarket chains and altering retail landscape, particularly in developing economies,are boosting product sales via this channel.

The online distribution channel segment is projected to register a CAGR of 12.9% from 2023 to 2030. Rising internet penetration and target marketing done by companies to reach all customer touchpoints are likely to fuel the growth of this segment. The trend of online sales and subscription boxes for organic produce has grown significantly in the last two years, which is expected to have a positive effect on market growth. Rapid penetration of online groceries and online food delivery platforms coupled with the surge in the adoption of smartphones further triggers segment growth.

Regional Insights

Availability of farmlands for organic farming in the U.S., Australia, and Argentina has forced the regulators to frame supportive policies to increase production output of organic foods. This factor in turn is projected to have a positive impact on organic food and beverages market demand over the forecast period. The North American organic food & beverages market made a larger contribution in the global market of 50.1% in 2022 owing to the unique advantages associated with the products such as eco-friendly, zero chemical and residue-free, and healthier compared to conventional food. Increasing consumer awareness regarding the benefits of non-genetically modified or engineered products intake is anticipated to fuel the North America market in the near future.

Asia Pacific is anticipated to be the fastest-growing region with a CAGR of 15.6% from 2023 to 2030 owing to the rising trend of ready-to-eat foods among the working-class people as well as high millennial population in countries, such as India. China, India, and Japan are the major markets, in terms of consumer spending on food. Moreover, a substantial rise in the demand for frozen food owing to less time for preparation and cooking is opening new avenues for the regional market for organic frozen food.Europe is anticipated to grow at a CAGR of 10.7% during the forecast period. Europe has witnessed a significant shift in consumer attitudes toward sustainability and ethical consumption.

Many consumers are now prioritizing products that are produced in an environmentally responsible manner, which includes organic farming practices. Organic agriculture promotes biodiversity, and soil health, and reduces the use of synthetic fertilizers and pesticides, aligning with the values of environmentally conscious consumers.According to a 2023 market report by the Soil Association Certification, the organic market in the UK has shown significant growth owing to the cost-of-living crisis, with sales increasing by 1.6% in 2022. This market growth was driven by strong performance in the food service sector, which witnessed sales increase by 152%.

However, sales of organic foods and drinks in supermarkets, independent retailers, and home delivery were mixed.Furthermore, as per the findings of the Meatless Farm Report, the organic market remains on an upward trajectory despite facing obstacles. Notably, there is a remarkable surge in the demand for sustainable shopping among consumers, indicating a robust interest in eco-friendly practices. Interestingly, the report highlights that customers are increasingly seeking organic goods that are reasonably priced and easily accessible. This implies a favorable outlook for the organic market, suggesting sustained growth in the foreseeable future.

Key Companies & Market Share Insights

The market includes both international and domestic participants. Key market players focus on strategies, such as innovation and new product launches, in retail to enhance their portfolio offering in the market. For instance:

• In February 2022, Amul, a dairy company in India, entered the organic food market by launching organic rice, flour, honey, chocolates, and potato products. They also plan to set up a "green college" to educate young farmers about natural and organic farming and create "organic haats" to sell organic products

• In May 2022, Organic India, a leading organic tea and wellness brand, launched two new varieties of tea and infusion: Tulsi Detox Kahwa and Peppermint Refresh. Both teas are certified organic and vegan, and they are available in loose-leaf and teabag formats. The launch of these new teas is part of Organic India's mission to offer consumers healthy and sustainable wellness products

Some of the key players operating in the global organic food and beverages market include:

• Hain Celestial

• Whole Foods Market L.P.

• Dole Food Company, Inc.

• Dairy Farmers of America, Inc.

• General Mills Inc.

• Danone

• United Natural Foods, Inc.

• Gujarat Cooperative Milk Marketing Federation (Amul)

• The Hershey Company

• Amy’s Kitchen, Inc.

• Organic Valley

• Conagra Brands, Inc.

• Nestlé

• Eden Foods

• SunOpta

Organic Food And Beverages Market Report Scope

Global Organic Food And Beverages Market Report Segmentation

This report forecasts revenue growth and provides an analysis of the latest trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global organic food and beverages market report based on product, distribution channel, and region:

• Product Outlook (Revenue, USD Million, 2017 - 2030)

  • Organic Food

    • Fruits & Vegetables

    • Meat, Fish & Poultry

    • Dairy Products

    • Frozen & Processed Food

    • Others

  • Organic Beverages

    • Non-dairy Beverages

    • Coffee & Tea

    • Beer & Wine

    • Others

• Distribution Channel Outlook (Revenue, USD Million, 2017 - 2030)

  • Supermarket/Hypermarket

  • Specialty Stores

  • Convenience Stores

  • Online Sales Channel

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • South Africa