The global organic foods market revenue was valued at USD 177.08 billion in 2023 and is estimated to grow to USD 199.35 billion in 2024. By 2032, the market is projected to reach USD 529.64 billion, registering a CAGR of 12.99% during the forecast period.
Rising health consciousness among consumers is expected to drive the demand for organic products. Increasing income levels further enable consumers to invest in such premium offerings, bolstering market growth. Additionally, celebrity endorsements and fundraising initiatives are anticipated to propel the market trajectory. Advancements in agricultural practices are also likely to support the development of the organic foods market.
This analysis is detailed in the report titled “Organic Foods Market, 2024-2032” by Fortune Business Insights™.
Information Source: https://www.fortunebusinessinsights.com/industry-reports/organic-foods-market-101470
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.)
Segments
Fruits & Vegetables to Dominate Due to High Nutritional Value
The market is categorized into fruits & vegetables, dairy, meat, fish & poultry, frozen & processed foods, cereals & grains, beverages, and others. The fruits & vegetables segment is expected to lead the market due to their rich nutritional profile, including essential vitamins, minerals, fibers, and antioxidants.
Unprocessed Foods to Capture Major Share Due to Convenience
The market is further divided into processed and unprocessed foods. Unprocessed organic foods are expected to dominate the market, driven by their fresh appearance and the convenience they offer to consumers seeking natural, minimally altered products.
Supermarkets/Hypermarkets to Lead Distribution Channels
The distribution channel segment includes supermarkets/hypermarkets, specialty stores, convenience stores, online retail, and others. Supermarkets/hypermarkets are expected to hold the largest market share, as they provide a wide variety of products and brands, making them a one-stop shop for organic food consumers.
Report Coverage
The report offers an in-depth analysis of the leading market segments and emerging trends. It thoroughly explores the driving and restraining factors influencing the market and evaluates the impact of COVID-19. Furthermore, the report highlights regional developments and examines the strategies adopted by key players to strengthen their market positions.
Drivers and Restraints
Evolving Farming Practices to Drive Market Development
The growth of the organic foods market is anticipated to be driven by the evolving farming practices, fueled by the widespread availability of chemical fertilizers and pesticides. Additionally, the environmental impact of conventional farming practices, due to the use of harmful chemicals, is expected to further boost market demand. The global rise in organic farming trends is increasing product availability and making organic options more affordable. Furthermore, the increasing number of product launches by market players is expected to accelerate market growth.
However, the high prices and limited shelf life of organic foods are likely to pose challenges to market expansion.
Regional Insights
Europe to Lead Market Share Owing to Increasing Environmental and Animal Concerns
Europe is expected to lead the organic foods market, driven by growing environmental and animal welfare concerns that motivate consumers to choose organic products, such as fruits and vegetables. According to AgenceBio, the French Agency for the Development and Promotion of Organic Agriculture, fresh fruits and vegetables ranked as the second most consumed organic product in France in 2020, accounting for 17% of organic consumption at home, following groceries at 31%.
North America is also projected to be a key region for the market, with rising health awareness among consumers and increasing adoption of organic foods. Countries like Canada, the U.S., and Mexico are seeing heightened demand for organic products. The Organic Trade Association (OTA) reported an 11% increase in dollar sales for the organic baby food category in the U.S. in 2021, followed by an 8% growth in the organic beverages segment.
Competitive Landscape
New Product Offerings by Key Market Players to Set Market Course
Major players in the organic foods market are expanding their product portfolios, launching new offerings, and fostering brand loyalty in both developed and developing countries. The entry of new players with innovative products has further accelerated market growth. For example, in May 2022, Amul introduced a new line of organic food products, including organic whole wheat atta, moong dal, tur dal, chana dal, and basmati rice, expanding its organic offerings to meet the growing consumer demand.
Key Industry Development
May 2022- Barry Callebaut, a Belgian-Swiss cocoa processor and chocolate manufacturer, recently expanded its plant-based product portfolio by introducing dairy-free organic chocolate. This new addition is aimed at catering to the growing demand for plant-based options, particularly across North America.
