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The organic food and beverages market size is forecast to increase by USD 210.3 billion at a CAGR of 10.87% between 2023 and 2028. The market is experiencing significant growth due to several key trends. Firstly, the number of new product launches in this sector is rising, as companies seek to capitalize on the increasing consumer demand for organic food and beverages. Secondly, consumer awareness about the health benefits associated with organic food and beverages is on the rise, leading to a growing preference for these products over their conventional counterparts. However, the high cost of organic food and beverages remains a significant challenge for the market, limiting its accessibility to a wider consumer base. Despite this, the market is expected to continue its growth trajectory, driven by these trends and the increasing consumer focus on health and wellness.
Organic food and beverages have gained significant popularity in recent years due to their health benefits and sustainable production methods. Consumers are increasingly seeking out non-GMO products as they prioritize their health and the environment. The organic food market encompasses a wide range of fruits, vegetables, grains, dairy, and beverages, all produced using organic farming practices. Organic farming avoids the use of synthetic ingredients, pesticides, and antibiotics, ensuring the health of both consumers and the environment. Soil health and biodiversity are prioritized in organic farming, leading to a more sustainable agricultural system. Consumer behavior is driven by a desire for healthier options and a reduced environmental impact.
Accessibility to organic products has improved with the rise of e-commerce, subscription packages, and online delivery services. Organic fruits and vegetables, organic oatmilk, and organic beverages from brands like Organic Valley, Dole Organics, and Organic India are increasingly available to consumers. Conventional agriculture, which relies on synthetic chemicals and genetically modified organisms, faces growing opposition from consumers concerned about the potential health risks and environmental impact. The National Horticulture Mission and organic certification programs help ensure the authenticity and quality of organic products. The market is expected to continue growing as consumers prioritize their health and the health of the planet.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The organic fruits and vegetables segment is estimated to witness significant growth during the forecast period. Organic food and beverages have gained significant traction in both developed and developing markets, with a particular focus on organic fruits and vegetables. In regions such as North America and Europe, the consumption of organic produce is prevalent, and it is projected to expand further during the forecast period. The increasing awareness of health benefits associated with organic food is a key factor driving this growth. Organic farming practices, which exclude the use of synthetic pesticides, antibiotics, and genetically modified organisms (GMOs), offer several advantages over conventional agriculture. Organic fruits and vegetables are known to contain higher levels of antioxidants, increasing their nutritional value by 20-40% compared to their non-organic counterparts.
Consumer behavior is shifting towards healthier, more ethical consumption, and the environmental impact of farming practices is becoming a significant consideration. Sustainable practices, such as those employed in organic farming, promote soil health and biodiversity, reducing the reliance on harmful chemicals. The accessibility of organic food has improved significantly, with the emergence of online retailers and subscription packages, as well as online delivery services. Consumer trust in organic certification standards is high, and brands like Organic Valley, Dole Organics, Organic Oatmilk, and Organic India have gained a strong foothold in the market. The vegan culture and product innovation are also contributing to the growth of the organic food and beverages sector.
Despite the higher costs associated with organic farming, consumers are willing to pay a premium for the health benefits and ethical considerations. The National Horticulture Mission and similar initiatives are also promoting organic farming practices to make them more accessible and ecologically friendly.
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The organic fruits and vegetables segment was valued at USD 50.20 billion in 2018 and showed a gradual increase during the forecast period.
Europe is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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Organic food and beverages have gained significant traction in the global market, driven by the increasing awareness of food safety standards and cultural heritage. Middle-class consumers, in particular, are showing a strong inclination towards ethical cultivation and food safety concerns. Culinary applications of organic produce continue to expand, leading to both impulsive buying and bulk purchases. Logistics challenges persist, however, due to the perishable nature of organic products. Customer confidence in organic food is high, with a growing preference for products that adhere to strict food safety regulations. Impulsive buying and bulk purchases contribute to the growth of the market, making it a promising sector for investors and stakeholders.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rising number of new product launches is the key driver of the market. The market is experiencing significant growth due to increasing consumer preference for healthier and ethically sourced options. This trend is driven by the recognition of the health benefits associated with non-GMO products and the desire for sustainable practices and reduced environmental impact. Consumer behavior is shifting towards organic farming, which prioritizes soil health and biodiversity over conventional agriculture's reliance on synthetic ingredients, pesticides, and antibiotics. The National Horticulture Mission and other similar initiatives are promoting organic certification, making these products more accessible to a wider audience. Online retailers and subscription packages, as well as online delivery services, are further expanding the reach of organic food and beverages.
The vegan culture and ethical consumption movement are also contributing to the market's growth. Product innovation is a key factor in the market, with new organic offerings including Carnation Breakfast Essentials Cinnabon Bakery-inspired flavored nutritional drink from Nestle Health Science and Maple Hill Creamery's zero-sugar organic ultra-filtered milk. These launches cater to health-conscious consumers seeking alternatives to conventional, chemically laden products. As the market continues to evolve, certification standards and consumer trust will remain crucial factors in driving growth. Organic Valley, Dole Organics, Organic Oatmilk, and Organic India are among the leading brands capitalizing on this trend.
Consumer awareness about health benefits of organic food and beverages is the upcoming trend in the market. The market is witnessing significant growth due to increasing consumer awareness regarding the health benefits associated with these products. The urban population's growing interest in non-GMO, chemically free, and ethically sourced food and beverages is driving market growth. Consumer behavior is evolving towards sustainable practices and a reduced environmental impact, leading to a preference for organic farming over conventional agriculture. Organic farming focuses on soil health and biodiversity, avoiding synthetic ingredients, pesticides, and antibiotics. The National Horticulture Mission and other similar initiatives are promoting organic certification, making organic food more accessible. Consumer trust in organic food and beverages is increasing, leading to the innovation of new products, such as organic oatmilk and vegan culture offerings from brands like Organic Valley, Dole Organics, and Organic India.
E-commerce platforms, online retailers, subscription packages, and online delivery services are making organic food and beverages more conveniently available, even in remote areas. The shift towards a health-conscious and ethical consumption culture is further fueling market growth. However, it is essential to maintain certification standards to ensure the authenticity and quality of organic food and beverages. The environmental impact of harmful chemicals used in conventional agriculture and the potential health risks associated with their consumption are significant concerns. Organic food and beverages offer a healthier and more ecologically friendly alternative, making them an attractive choice for consumers. The market for organic food and beverages is expected to continue growing, with a focus on innovation, accessibility, and consumer trust.
The high cost of organic food and beverages products is a key challenge affecting the market growth. Organic food and beverages offer numerous health benefits, as they are free from synthetic ingredients, pesticides, antibiotics, and genetically modified organisms (GMOs). Consumer behavior towards organic products is shifting due to growing awareness about the environmental impact of conventional agriculture and the importance of sustainable practices. Organic farming focuses on soil health and biodiversity, ensuring the production of healthy and ecologically friendly food and beverages. However, the retail price of organic products is higher than conventional alternatives due to limited farming, time-consuming production processes, and high labor input. This cost can be a barrier for some consumers, particularly those in the middle class.
Economic uncertainties and recession can further impact purchasing power, hindering sales. To address these challenges, private-label brands and technological advancements are emerging, making organic food and beverages more accessible through e-commerce, subscription packages, and online delivery services. Key players in the market include Organic Valley, Dole Organics, Organic Oatmilk, Organic India, and others. Consumers are increasingly health-conscious and ethically minded, seeking organic, non-GMO products as part of their vegan culture and commitment to sustainable practices.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Organic food and beverages have gained significant popularity in recent years due to their health benefits and commitment to sustainable practices. Consumers are increasingly seeking non-GMO products and avoiding synthetic ingredients, pesticides, and antibiotics found in conventional agriculture. The organic market encompasses a wide range of fruits, vegetables, grains, dairy, and beverages, including organic oatmilk, organic valley products, and Dole Organics. Consumer behavior is driven by a desire for healthier options, ethical consumption, and environmental impact. Organic farming practices focus on soil health and biodiversity, ensuring the production of high-quality, nutrient-dense food. The National Horticulture Mission and organic certification standards further promote the growth of the organic market.
Further, accessibility to organic products has increased with the rise of online retailers, subscription packages, and online delivery services. The vegan culture and health-conscious consumers have also contributed to the market's growth. However, the organic market faces challenges in maintaining certification standards and consumer trust. The use of harmful chemicals in conventional agriculture and the environmental impact of conventional farming practices continue to be concerns. Overall, the market is expected to grow due to increasing consumer awareness and demand for ecologically friendly and healthier options.
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Market Scope |
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Report Coverage |
Details |
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Page number |
189 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 10.87% |
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Market growth 2024-2028 |
USD 210.3 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
9.53 |
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Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
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Performing market contribution |
Europe at 34% |
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Key countries |
US, Germany, Canada, France, and Japan |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Agrowave Organic Vegetable and Fruits, Amys Kitchen Inc., Archer Daniels Midland Co., Ardent Mills LLC, Arla Foods amba, Aurora Organic Dairy, Bunge Ltd., Cargill Inc., Danone SA, Del Monte Pacific Ltd., Drakes Organic Spirits Inc., General Mills Inc., Hometown Food Co., Kellogg Co., Maple Hill Creamery LLC, Mehrotra Consumer Products Pvt. Ltd., Nestle SA, ORGANIC India Pvt. Ltd., Organic Valley, PepsiCo Inc., Premium Brands Holdings Corp., PS Organic, The Coca Cola Co., The Hain Celestial Group Inc., The Hershey Co., and United Natural Foods Inc. |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product Type
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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