The global organic foods market was valued at USD 177.08 billion in 2023 and is forecasted to grow from USD 199.35 billion in 2024 to USD 529.64 billion by 2032, registering a CAGR of 12.99% throughout the forecast period. Europe held the largest share of the organic foods market in 2023, accounting for 44.17%. Additionally, the U.S. organic foods market is expected to see significant expansion, reaching an estimated USD 185.47 billion by 2032, fueled by a highly health-conscious population and a rise in the launch of organic food products.
Organic foods refer to food and beverage items—such as fruits, vegetables, dairy products, and grains—produced in accordance with organic farming standards. The market’s growth is primarily driven by increasing health awareness among consumers and government efforts to promote organic food production. As global demand for organic foods rises, companies are introducing a variety of new offerings in the packaged food segment to strengthen their market presence. Rising disposable incomes, improving living standards, and rapid urbanization are further contributing to the market's growth. The COVID-19 pandemic significantly boosted global demand for organic foods, as consumers became increasingly aware of the importance of nutrition and health, which served as a key growth factor during the crisis.
Information Source: https://www.fortunebusinessinsights.com/industry-reports/organic-foods-market-101470
Segments
Fruits & Vegetables Segment to Dominate Due to High Nutritional Value
By category, the market is segmented into fruits & vegetables, dairy, meat, fish, & poultry, frozen & processed foods, cereals & grains, beverages, and others. The fruits & vegetables segment is projected to hold the largest share due to their high nutritional content and abundance of vitamins, minerals, fibers, and antioxidants.
Unprocessed Organic Foods to Lead Due to Perceived Freshness and Convenience
In terms of product type, the market is categorized into processed and unprocessed. Unprocessed organic foods are expected to command a major share, owing to their fresh-like appearance and consumer preference for convenience.
Supermarkets/Hypermarkets Segment to Lead Due to Broad Product Range
By distribution channel, the market is segmented into supermarkets/hypermarkets, specialty stores, convenience stores, online retail stores, and others. The supermarkets/hypermarkets segment is expected to lead, as it provides a diverse array of brands and product options in one place.
Report Coverage
This report offers a comprehensive analysis of the leading segments and current market trends. It also examines the primary driving and restraining factors, as well as the effects of COVID-19 on the market. Furthermore, it covers regional market developments and strategies implemented by top industry players.
Drivers and Restraints
Advancing Agricultural Practices to Fuel Market Growth
The adoption of advanced and evolving agricultural practices, largely influenced by the availability of chemical fertilizers and pesticides, is expected to contribute to the growth of the organic foods market. Increasing environmental concerns linked to the use of hazardous chemicals in farming have amplified interest in organic alternatives. The global rise in organic farming has increased product accessibility and affordability. A growing number of product launches by industry players is also anticipated to propel market growth.
Nevertheless, high costs and limited shelf life associated with organic foods are expected to pose challenges to market expansion.
Regional Insights
Europe to Dominate Market Due to Rising Environmental and Animal Welfare Awareness
Europe is projected to lead the organic foods market due to increasing concerns over environmental impact and animal welfare, prompting greater consumption of organic fruits and vegetables. According to AgenceBio, the French Agency for the Development and Promotion of Organic Agriculture, fresh fruits and vegetables represented the second-highest organic product consumed at home in France in 2020, comprising 17% of organic consumption, following groceries at 31%.
North America is also expected to be a major market player, driven by growing health awareness and rising adoption of organic foods. Countries such as the U.S., Canada, and Mexico are witnessing increased demand. According to the Organic Trade Association (OTA), in 2021, the U.S. saw an 11% increase in dollar sales for organic baby food, followed by an 8% increase in the organic beverages category.
Competitive Landscape
Innovative Product Launches by Key Players to Shape Market Trends
Leading companies are expanding their portfolios through a range of offerings, including new product introductions and brand development, across both developed and emerging markets. The entry of new competitors with innovative products has further stimulated market growth. In May 2022, Amul announced the launch of a new organic product range, including organic whole wheat atta, moong dal, tur dal, chana dal, and basmati rice.
List of Key Players Profiled in the Report
- General Mills Inc. (U.S.)
- Danone S.A. (France)
- Dole plc. (Ireland)
- Organic Valley (U.S.)
- Organic India Pvt. Ltd. (India)
- Amy's Kitchen, Inc. (U.S.)
- Arla Foods Amba (Denmark)
- Eden Foods Inc. (U.S.)
- Hain Celestial Group, Inc. (U.S.)
- SunOpta Inc. (U.S.)
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Key Industry Development
In May 2022, Barry Callebaut, a Belgian-Swiss cocoa processor and chocolate producer, expanded its plant-based offerings by introducing a dairy-free organic chocolate line aimed at consumers in North America.
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