The global organic foods market reached a value of USD 177.08 billion in 2023 and is expected to expand from USD 199.35 billion in 2024 to USD 529.64 billion by 2032, registering a compound annual growth rate (CAGR) of 12.99% during the forecast period. In 2023, Europe held the largest market share, representing 44.17% of global revenue. Meanwhile, the U.S. market is projected to experience substantial growth, with expectations to hit USD 185.47 billion by 2032, fueled by increasing consumer health awareness and a rise in organic product offerings.
Organic food products encompass a broad spectrum of items, including fruits, vegetables, grains, and dairy, all produced under certified organic farming standards. The market's momentum is largely driven by growing consumer interest in health and wellness, alongside supportive government policies that encourage organic agricultural practices. Additionally, industry players are consistently innovating in the packaged food space to meet growing demand. Other factors such as rising disposable incomes, better living standards, and rapid urbanization are also propelling the market forward. The COVID-19 pandemic significantly boosted consumer demand for organic foods, as health and nutrition became top priorities, acting as a powerful catalyst for the industry.
Information Source: https://www.fortunebusinessinsights.com/industry-reports/organic-foods-market-101470
Market Segmentation
Fruits & Vegetables to Lead Due to Nutritional Benefits
By category, the market is segmented into fruits & vegetables, dairy, meat, fish & poultry, frozen & processed foods, cereals & grains, beverages, and others. The fruits and vegetables segment is expected to dominate, owing to its rich nutritional profile that includes essential vitamins, minerals, fiber, and antioxidants.
Unprocessed Organic Products to Capture a Larger Market Share
Based on product type, the market is divided into processed and unprocessed goods. Unprocessed organic items are projected to lead, driven by their fresh appearance and rising consumer preference for natural, minimally altered food options.
Supermarkets/Hypermarkets to Remain the Leading Distribution Channel
Distribution channels in the market include supermarkets/hypermarkets, specialty stores, convenience stores, online retail, and others. Supermarkets and hypermarkets are likely to retain their leading position by offering a comprehensive selection of organic brands and products under one roof.
Report Coverage
This report provides an in-depth assessment of key market segments, trends, growth drivers, and constraints. It evaluates the pandemic's impact on the sector and highlights regional market developments along with strategic initiatives taken by top companies.
Key Drivers and Challenges
Sustainable Farming Practices Driving Market Expansion
The increasing shift toward eco-friendly farming practices and rising concern over the environmental impact of synthetic fertilizers and pesticides are expected to boost organic food adoption. Growing awareness around sustainable agriculture is making organic products more available and cost-effective. Furthermore, ongoing product innovation by major players is expected to support market growth. Nevertheless, the high price point and shorter shelf life of organic goods may present challenges to widespread adoption.
Regional Insights
Europe to Lead Due to Strong Environmental and Ethical Awareness
Europe is projected to remain the dominant player in the global organic food market, backed by strong environmental ethics and rising concern for animal welfare. According to AgenceBio, fresh fruits and vegetables made up 17% of France's home-consumed organic items in 2020, second only to groceries at 31%.
North America is also set for significant growth, primarily driven by a rise in health-focused consumers and increasing organic product availability across the U.S., Canada, and Mexico. The Organic Trade Association (OTA) reported that in 2021, U.S. sales of organic baby food grew by 11%, while the organic beverages category saw an 8% increase.
Competitive Landscape
Product Innovation and Launches to Propel Market Growth
Leading companies are enhancing their product portfolios through strategic launches and branding efforts in both established and developing markets. New market entrants are also contributing to market expansion through innovative offerings. For instance, in May 2022, Amul introduced a new organic product line including organic wheat flour, pulses (moong dal, tur dal, chana dal), and basmati rice.
Key Companies Mentioned:
- 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.)
Tariff Impact Analysis for the Organic Foods Market: https://www.fortunebusinessinsights.com/enquiry/request-sample-us-tariff/organic-foods-market-101470
Industry Developments
May 2022 – Barry Callebaut, a prominent Belgian-Swiss cocoa and chocolate producer, broadened its plant-based portfolio by launching a dairy-free organic chocolate range tailored for the North American market.
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