Global Organic Food Market Outlook, 2027

Organic foods are composed of natural and organic ingredients that are cultivated as per the standards of organic farming. These food products and beverages are produced without any synthetic chemicals, including fertilizers, pesticides, and hazardous chemicals, and have a longer life span. With rising consciousness among millennial towards the environment and sustainability, many are exploring food options that are free of chemicals, fertilizers, and pesticides. The recently published report titled, 'Global Organic Food Outlook, 2027', by Bonafide Research has classified the market into organically produced food range of fruits & vegetables, meat, fish & poultry, dairy products, and frozen & processed products. The organic food market was valued around USD 167 Billion in the year 2021, which held the highest share in the global organic food & beverage market. Growing awareness regarding health benefits of organic food consumption, rising per capita spending on organic food products and increasing health concerns due to growing number of chemical poisoning cases are expected to drive global organic food market in the coming years. In addition, continuing product innovations and aggressive marketing strategies adopted by major players and online retailers would positively influence the global organic food market during forecast period.

Today’s interest in organic may be intensified, but organic industry's growing popularity is not new. Consumers are eating more organic food and using more organic products than ever before. In 2020, the organic fruits and vegetable segment registered the highest market share of more than 40% of the total market share. Moreover, increase in income levels, improvement in standards of living, growth in environmental concerns, increase in health hazard diseases due to inorganic foods are some other driving factors of this market. The impact of these drivers is expected to increase significantly due to growth in health concerns among the consumers. Further, North America is the largest market since the year 2016, owing to the high presence of the target population in the region. The market vendors compete based on factors such as price, quality, innovation, reputation, and distribution. Intense competition among players, along with rapid technological changes, poses significant risk factors for vendor operations. Increasing health concerns due to growing number of chemical poisoning cases globally is acting as a driver in the organic food market. Consumers are becoming more health conscious owing to the harmful effects caused by the presence of chemical pesticides in food products. The toxicity of chemical pesticides in food products can cause cancer, hormone disruption and birth defects. According to an UN report, around 200,000 people die every year due to toxic effects of pesticides in food products. This is causing consumers to shift their focus towards organic food products. Low shelf life of organic food and beverages compared to conventional foods and beverage products is restraining the organic food market. Similarly, some researchers found that many organic foods had higher levels of bacteria than conventional products that cause food to spoil. As organic food is not exposed to the similar amount of preservatives that of conventional food, organic food is tend to be prone to bacteria attacks and has a shorter shelf life. For example, organic food products like turnip greens, mustard greens, and endive have a very short shelf life with shrinkage percentage of 50%. Thus, high packaging, logistics and distribution costs to increase shelf life is limiting the growth of the organic food market. Companies in the organic food market are focusing on introduction of new product categories and varieties. Organic food manufacturers are coming up with new and innovative organic food products in the form of ready-to-eat snacks, cookies, organic tea, pulses, spices, edible flowers, frozen waffles, medical plants, herbs and organic juices. For example, Lidl, an organic grocery chain is coming up with 28 new and innovative organic food products to choose from. Similarly, Nestle plans to launch new and innovative organic milk products in India. The organic food market is regulated by authorities such as the US Food and Drug Administration (FDA) and the European Food Safety Authority (EFSA) to ensure high quality standard of food product is maintained. For instance, EFSA oversees whether labeling is used to mislead consumer on the nutritive proportions of a product in the EU. EFSA performs occasional checks on the nutritional value to check whether correct labeling has been used or not. In order to maintain transparency and effectiveness, regulatory authorities have come up with strict food labeling regulations for the organic food market. Major players in the organic food market are General Mills Inc., Cargill, Inc., Danone, United Natural Foods Inc. and Amy’s Kitchen. Moreover, more people are accepting organic food due to the presence of multiple benefits, which is predicted to be the major driving factor for the global organic food market in the estimated period. Moreover, with the changing lifestyle, consumers are more concerned about their health, so they prefer organic food over other confectionary foods. In addition to this, improved distribution channel and rise in the income level among the population are predicted to be few of the biggest driving factors for the global organic food market in the estimated period. On the other hand, organic poultry is a novel method of rising live stoke. Commercially grown poultry often contains artificial hormones, antibiotics, and tiny quantities of pesticides compared to organic poultry as organic poultry is free from any artificial constituents. Because the animals take up less area and grow to huge sizes relatively rapidly, organic chicken farming is considered as more beneficial than other forms of organic meat production. All such elements will accelerate the market growth of organic food market. Moreover, demand for health-beneficial items is increasing as people's lifestyles change around the world. Also, now-a-days, consumers are aware of the safety and quality of organic products, the market is expanding because consumers are prepared to pay high costs.

Furthermore, governments have initiated certain certifications to verify that each product is organic and sustainable. For example, according to Section 22 of the Food Safety Standards Act, 2006, the Food Safety and Standards Authority of India (FSSAI) is responsible for reguSouthg the manufacture, distribution, sale, and import of "organic foods." Thus, such factors create an opportunity to gain major pull in the coming years for organic food market. The rising awareness towards organic living, growing food security concerns, environmental issues, rising investments to facilitate organic farming, and the willingness of consumers to pay for premium-priced organic products are the major factors driving the growth of this market. In addition, emerging Asia-Pacific and South American economies are expected to create lucrative opportunities for players operating in this market. Covid-19 Impacts: The COVID-19 has had a significant impact on the organic food industry. Due to the uncertainty, consumer purchasing patterns have changed as consumers have become more aware of the importance of a strong immune system, resulting in a preference for organic and natural foods. Moreover, following the epidemic in 2020, there has been a paradigm shift in the organic food industry with consumers beginning to buy more organic commodities as a preventative health measure. This shift in mindset is expected to continue to fuel the organic food market's future growth. In fact, the organic food industry, particularly in fruit & vegetables, has expanded globally. Moreover, there are certain key players that have experienced demand for organic foods; for example, General Mills Inc., US based consumer goods company, revealed that they have experienced increase of 8% in net sales especially in organic food industry. All such aspects are expected to help boost organic food demand. Major Companies considered in Report: Amy’s Kitchen, Danone - WhiteWave Foods, Eden Foods, Inc., General Mills, Hain Celestial Group, Nature's Path Foods, Inc., Organic Valley, SunOpta Inc., United Natural Foods, Inc, Whole Foods Market Considered In the Report • Geography: Global • Historical year: 2016 • Base year: 2021 • Estimated year: 2022 • Forecasted year: 2027 Regions and Countries covered: • North America (USA, Canada, Mexico) • Europe (Germany, UK, France, Spain, Italy, Russia) • Asia-Pacific (India, Japan, Australia, China) • South America (Brazil, Argentina, Columbia) • Middle East & Africa (UAE, Qatar, Saudi Arabia, South Africa) Aspects Covered In the Report • Market Size By Value for the time period (2015-2026F) • Market Share by Type (Food & Beverage) • Market Share by Food (Fruits & Vegetables, Meat, Fish & Poultry, Dairy Products, Frozen & processed Food) • Market Share by Sales Channel (Convenience Store, Modern Retail, Online Retail) • Market Share by Region • Market Share by Country The approach of the report: We keep an eye on evolving markets and try to evaluate the potential of the products and services. If we find the market interesting, we start working on it and create the desired table of content, considering all aspects of the business. We start by creating separate questionnaires for C-level executives, national/regional sales personnel, company owners, dealers, distributors, and end-users. Once the questionnaires have been finalized, we start collecting the primary data (mostly through phone calls) and try to understand the market dynamics regionally or tier-wise. This process gives us in-depth details of the market, including all present companies, the top-performing products with reasons why they dominate; we get the details of new players and their innovative approaches; market trends; dynamics; and all the small details of the market. After the collection of primary inputs, we then cross-check the same with secondary sources that include associations, trade journals, annual reports, paid databases, newspapers, magazines, press releases, government sources, etc. From this, we get a rough estimate of the market and start checking existing product price variants, trade, production, raw material scenarios, policies and regulatory landscape, etc. Then, to finalize the market, we start collecting financials of each player present in the market, including limited, private limited, and LLPs. Moreover, we perform cross-industry and cross-region analysis of the product, and based on collected primary inputs and using statistical modeling, we start forecasting the market. We follow our forecasting algorithm, which is unique for each product but gives more weight age to primary inputs. At the same time, the content team starts preparing company profiles, market dynamics, market trends, five forces, PEST analysis, etc. Once the data is verified by the data expert, the team (primary team, content team, and data team) together crosscheck the segmentations, validate the market, and then the designing team starts plotting the graphs. Once the file is ready, the content team completes the report and makes sure that all the discussed points have been covered and provides their valuable inputs in the form of strategic recommendations for new as well as existing players. The QC team then checks the overall report that includes spell check, data verification, and makes the same dispatch ready and error-free. Intended Audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the organic food and beverage companies, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.