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The US organic packaged food market size is projected to increase by USD 7.40 billion, at a CAGR of 7.65% between 2023 and 2028. The market in the US is experiencing an increase in growth rate, driven by consumer demand for healthier options. Markets like dairy food, bakery, and confectionery offer alternatives, appealing to consumers seeking the benefits of natural ingredients. With convenience and consumer trends favoring consumption of organic packaged food, forecasts indicate continued global expansion in these markets, reflecting broader shifts in consumer preferences and lifestyle choices. The organic packaged food market in the US is seeing significant growth, driven by increasing demand for fruits and vegetables and a rise in vegan culture. Consumers in both developing nations and the US prefer organic products due to concerns about chemical fertilizers, synthetic pesticides, antibiotics, and growth hormones.
The market shows an accelerated CAGR during the forecast period.
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The US organic packaged food market growth analysis report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Flexible packaging plays a significant role in providing convenient, sustainable, and visually appealing solutions for various product categories. One type of flexible packaging commonly used are stand-up pouches. Flexible films and wraps are also prominent, safeguarding meats, cheese, and bakery items from moisture and oxygen. Brands such as Applegate Farms (Subsidary of Hormel Foods Corporation), specializing in natural meats, utilize flexible films for packaging products such as deli meats, ensuring product integrity and extending shelf life while communicating certifications to consumers effectively. Consequently, driving factors for the adoption include convenience, sustainability, and effective product presentation. Thus, such factors are expected to continue driving US organic packaged food market growth during the forecast period.
The market share by the dairy bakery and confectionery segment will be significant during the forecast period. Dairy products such as milk, yogurt, cheese, and butter are popular offerings. These products are sourced from organically raised animals that are fed feed and are not treated with antibiotics or synthetic hormones. These dairy products are often preferred by consumers due to concerns about animal welfare and the absence of synthetic additives.
The dairy bakery and confectionaries segment was valued at USD 7.41 billion in 2018.
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Moreover, organic bakery items cater to consumers seeking healthier alternatives to conventional baked goods, with a focus on natural ingredients and environmentally friendly production methods. Additionally, confectionaries encompass a variety of treats, such as chocolates, candies, and snacks made from organic ingredients, including cocoa beans, sugar, and nuts. Thus, the increase in the adoption in the dairy, bakery, and confectioneries segment will boost US organic packaged food market growth during the forecast period.
Organic food, including dairy products, processed food products, fish and poultry products, is free from artificial preservatives, offering longer shelf life without compromising health. Organic packaged food rich in antioxidants, minerals, and nutrients promotes heart health and reduces obesity risk, making it popular among pregnant women to prevent birth defects. Conventional food, often containing synthetic pesticides, antibiotics, and growth hormones, is being replaced by organic alternatives in general stores, supermarkets, hypermarkets, specialty stores, and online distribution segments.
Growing awareness about the health benefits is the key factor driving the market. Consumers are increasingly concerned about the potential health risks associated with conventional farming practices, such as the use of synthetic pesticides, hormones, and GMOs. Such products are perceived as healthier alternatives because they are produced without the use of these potentially harmful substances.
Additionally, such farming practices promote soil health, biodiversity, and sustainable agriculture, which further contribute to the perceived health benefits of such foods. The growing interest in wellness and preventive healthcare has fueled the demand among health-conscious consumers seeking to improve their diets and overall well-being. As a result, manufacturers and retailers are increasingly expanding their fresh product offerings to meet this demand, driving US organic packaged food market growth during the forecast period.
Rising interest in organic plant-based diets is one of the primary market trends. The rising interest in plant-based diets is fueled by various factors, including growing awareness of the health benefits associated with plant-based eating, concerns about animal welfare, and environmental sustainability. Consumers are increasingly opting for such products as part of a conscious effort to reduce their consumption of animal-derived products and incorporate more plant-based options into their diets.
Furthermore, brands are capitalizing on the trend by highlighting the health, environmental, and ethical benefits of their offerings, appealing to a growing segment of consumers seeking sustainable and nutritious options. Thus, the rising interest in plant-based diets is driving significant innovation, which, in turn, will fuel US organic packaged food market growth during the forecast period.
Stringent regulations and certifications for organic products is a challenge that affects the market. While regulations ensure integrity and authenticity, compliance can be complex and costly for producers. The process of obtaining and maintaining certifications, such as the USDA certification, involves rigorous standards and documentation requirements at every stage of the production process, from farming to packaging.
Moreover, according to regulations, in the US, the ingredients claim is allowed on packaged products if the ingredient qualifies for the description and contains less than 70% content. In Canada, such products are regulated under the Safe Food for Canadians Regulations (SFCR) by the Canadian Food Inspection Agency (CFIA). These factors may impede US organic packaged food market growth during the forecast period.
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 forecasting growth and analysis.
The US organic packaged food market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 10 market companies, including:
Barilla G. e R. Fratelli Spa, Campbell Soup Co., Corporativo Bimbo SA de CV, Danone, DAVES KILLER BREAD, Flowers Foods Inc., General Mills Inc., LT Foods Ltd., Nestle SA, Organic Valley, Perdue Farms Inc., The Hain Celestial Group Inc., The Hershey Co., Tyson Foods Inc., and Hormel Foods Corp.
The market analysis and report of 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.
The US organic packaged food market is experiencing rapid growth across both the off-line segment and online segment due to increasing consumer awareness about the harmful effects of chemical fertilizers and pesticides. Consumers are gravitating towards dairy products and processed food products sourced from organically raised animals, free from antibiotics and growth hormones, as well as devoid of synthetic pesticides and artificial preservatives that can compromise shelf life and contribute to the proliferation of harmful bacteria. In developed nations, the demand for organic alternatives to conventional food is surging, driven by concerns over minerals, heart health, and the benefits of antioxidants particularly for pregnant women seeking to mitigate the risk of birth defects. Further, the market extends beyond traditional offerings to include fresh fish and poultry products, tea and coffee, catering to a growing vegan culture and the trend towards a low-fat diet to combat obesity.
Distribution channels encompass a variety of options, from offline stores like specialty stores, supermarkets, and hypermarkets to online platforms offering express delivery and subscription boxes, enabling target marketing to meet the diverse preferences of health-conscious consumers. For instance, Aurora Organic Dairy offers fresh products such as reduced-fat milk, low-fat chocolate milk, and whole milk. With the expansion of the internet, the online segment and subscription boxes offer convenient access to organic foods, complementing the offline segment through express delivery services. Specialty offline stores and general stores also serve as critical distribution channels. Consumers are increasingly concerned about food safety, avoiding bacteria and supporting low-fat diets. Additionally, organic tea and coffee are gaining traction, with both online and offline stores, including hypermarkets, providing easy access across various distribution channels.
Market Scope |
|
Report Coverage |
Details |
Page number |
152 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.65% |
Market Growth 2024-2028 |
USD 7.40 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.77 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Amys Kitchen Inc., Arla Foods amba, Aurora Organic Dairy, Barilla G. e R. Fratelli Spa, Campbell Soup Co., Corporativo Bimbo SA de CV, Danone, DAVES KILLER BREAD, Flowers Foods Inc., General Mills Inc., LT Foods Ltd., Nestle SA, Organic Valley, Perdue Farms Inc., The Hain Celestial Group Inc., The Hershey Co., Tyson Foods Inc., and Hormel Foods Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for forecast period. |
Customization purview |
If our US organic packaged food market forecast 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
7 Market Segmentation by Packaging
8 Market Segmentation by Distribution Channel
9 Customer Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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