The global organic foods market was valued at USD 177.08 billion in 2023 and is projected to rise from USD 199.35 billion in 2024 to USD 529.64 billion by 2032, reflecting a strong compound annual growth rate (CAGR) of 12.99% during the forecast period. Europe dominated the market in 2023 with a 44.17% revenue share. In the U.S., the market is anticipated to expand significantly, reaching USD 185.47 billion by 2032, supported by increasing health awareness and broader availability of organic products.
Organic foods encompass a wide variety of products, including fruits, vegetables, cereals, grains, dairy, meat, and packaged goods, all produced under certified organic farming practices. Rising consumer interest in health and nutrition, favorable government policies, and continuous innovation in packaged organic products are major growth enablers. Additional drivers include higher disposable incomes, rapid urbanization, and evolving lifestyles. The COVID-19 pandemic further accelerated the shift toward healthier diets, boosting demand for organic alternatives.
Information Source: https://www.fortunebusinessinsights.com/industry-reports/organic-foods-market-101470
Market Segmentation
The organic food and beverage market is segmented into fruits & vegetables, dairy, meat, fish & poultry, frozen and processed foods, cereals & grains, beverages, and others. Fruits and vegetables are expected to lead, as they are rich in vitamins, antioxidants, fiber, and other essential nutrients. By product type, unprocessed organic foods are likely to dominate, reflecting consumer preference for fresh and minimally processed products that align with health-conscious living. In terms of distribution, supermarkets and hypermarkets remain the largest channel, owing to convenience and extensive variety, while specialty outlets, convenience stores, and online platforms continue to grow in importance for accessibility.
Report Scope
This report delivers a detailed assessment of the global organic foods market, including segment performance, regional developments, emerging opportunities, and key industry challenges. It also evaluates how the COVID-19 pandemic has influenced long-term growth trends.
Market Drivers and Challenges
Sustainable Farming Practices Driving Expansion
Rising adoption of eco-friendly agricultural techniques and increasing awareness of the harmful effects of synthetic fertilizers and pesticides are accelerating demand for organic foods. As sustainable farming expands, organic products are becoming more accessible and cost-competitive. Product innovations by leading players further support market growth. However, premium pricing and shorter shelf life remain key barriers to broader consumer adoption.
Regional Insights
Europe Maintains Market Leadership
Europe is set to retain its leading position, backed by strong environmental values and a preference for ethical, health-focused food choices. For instance, AgenceBio reported that fresh produce accounted for 17% of organic consumption in France in 2020, while packaged groceries led with 31%.
North America Demonstrates Strong Growth
North America, led by the U.S., Canada, and Mexico, is witnessing steady growth due to rising health awareness and a broader range of organic offerings. According to the Organic Trade Association (OTA), U.S. organic baby food sales rose 11% in 2021, while organic beverages grew 8%.
Competitive Landscape
Innovation and Branding Strengthening Market Share
Industry leaders are expanding product portfolios and enhancing brand presence through innovation and targeted marketing strategies. Startups are also gaining ground by launching niche and value-added products. For example, in May 2022, Amul (India) introduced a new range of organic items, including wheat flour, basmati rice, and pulses (moong dal, tur dal, and chana dal).
Key Companies in the Organic Foods Market
- 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.)
Recent Industry Development
May 2022 – Barry Callebaut, a leading chocolate and cocoa manufacturer based in Belgium and Switzerland, launched a new line of dairy-free organic chocolates for the North American market, further expanding its plant-based product portfolio.
