The global organic foods market was valued at USD 177.08 billion in 2023 and is projected to expand from USD 199.35 billion in 2024 to USD 529.64 billion by 2032. This represents a strong compound annual growth rate (CAGR) of 12.99% during the forecast period. Europe led the market in 2023, contributing 44.17% of the overall revenue. In the U.S., the market is set for notable expansion, forecasted to reach USD 185.47 billion by 2032, driven by increasing health awareness and greater accessibility to organic product choices.
Organic foods encompass a wide range of consumables—including fruits, vegetables, grains, dairy, and other categories—produced using certified organic farming techniques. The market is expanding as a result of growing consumer awareness regarding health and nutrition, supportive government policies, and continuous innovation in the organic packaged food industry. Additional contributors include increasing disposable incomes, a rise in urban populations, and improved living standards. The COVID-19 pandemic further accelerated the adoption of healthier food alternatives, fueling the demand for organic options.
Information Source: https://www.fortunebusinessinsights.com/industry-reports/organic-foods-market-101470
Market Segmentation
The organic food and beverages market is categorized into fruits & vegetables, dairy, meat, fish & poultry, frozen and processed foods, cereals & grains, beverages, and others, with fruits and vegetables expected to dominate due to their high content of essential nutrients, vitamins, antioxidants, and dietary fiber. By product type, the market is segmented into processed and unprocessed organic items, with unprocessed products anticipated to lead owing to growing consumer preference for fresh, minimally processed foods that support healthier lifestyles. In terms of distribution, supermarkets and hypermarkets are projected to maintain their dominance as the most preferred channels due to their convenience, wide selection of organic offerings, and one-stop shopping experience, while specialty stores, convenience outlets, and e-commerce platforms also play significant roles.
Report Scope
This report offers an in-depth analysis of the global organic foods market, covering major segments, regional performance, recent trends, and growth opportunities. It also explores the challenges faced by industry participants and assesses the long-term impact of the COVID-19 pandemic on market dynamics.
Market Drivers and Challenges
Rise of Sustainable Agriculture Fuels Market Expansion
The shift towards environmentally responsible farming practices and rising concerns over the long-term effects of synthetic pesticides and fertilizers are significantly contributing to the demand for organic foods. As sustainable agricultural techniques become more widely adopted, organic products are becoming more accessible and cost-effective. Moreover, ongoing product innovation from key players is further propelling market development. However, obstacles such as premium pricing and reduced shelf life continue to hinder mass market penetration.
Regional Insights
Europe Continues to Dominate the Global Market
Europe is expected to maintain its leadership position in the organic food sector, underpinned by strong environmental values and ethically driven consumer behavior. In France, for example, data from AgenceBio indicates that fresh produce accounted for 17% of the country’s organic food consumption in 2020, trailing only packaged groceries at 31%.
North America Shows Strong Growth Potential
North America, particularly the U.S., Canada, and Mexico, is witnessing rapid market growth due to a surge in demand for health-oriented products and expanding availability of organic offerings. The Organic Trade Association (OTA) reported an 11% increase in U.S. organic baby food sales in 2021, alongside an 8% rise in the organic beverage category.
Competitive Landscape
New Product Launches and Branding Strategies Boost Market Presence
Leading companies are actively expanding their portfolios and increasing brand visibility through product launches and strategic marketing, targeting both established and emerging markets. Startups are also playing a key role, injecting innovation and variety into the market. For instance, in May 2022, India’s Amul cooperative launched a range of organic food products including basmati rice, pulses (moong dal, tur dal, chana dal), and wheat flour.
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.)
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Recent Industry Development
- May 2022: Barry Callebaut, a leading chocolate and cocoa producer based in Belgium and Switzerland, introduced a new line of dairy-free organic chocolate products tailored for the North American market, further expanding its plant-based portfolio.
