Organic Food Market: 2024–25 — Growth, Regions and Strategic Moves

The organic food market returned to clear growth in 2024 and into 2025 as consumers rebalanced spending toward health, retailers expanded private-label organic assortments, and large food groups reshaped portfolios via divestments and acquisitions. This piece summarises verified 2024–25 developments, cross-industry applications, core components, region-by-region dynamics, recent corporate deals, and near-term prospects — with data and primary quotes to verify every major claim.

1) Latest developments (2024–25)

• U.S. retail momentum accelerated in 2024: “Dollar sales for organic also reached a new high of $71.6 billon in 2024.” 

• Global organic farmland continued to expand: “In 2022, global organic and transitioning to organic land comprised almost 240 million acres. Australia has the most organic and transitioning to organic acreage (131 million acres).” 

• Corporate portfolio moves: Danone divested some U.S. organic dairy brands and then pursued complementary organic acquisitions — “Danone announces the sale of Horizon Organic and Wallaby businesses in the U.S.” (Jan 2, 2024).  

2) Applications across industries

Organic certification and ingredients matter beyond grocery aisles:

• Food & Beverage: fresh produce, dairy, baby foods and beverages (functional and plant-based). OTA data shows produce led organic food sales in 2024. 

• Retail & Private label: grocers scale organic private labels to hold margins and traffic (see Kroger’s expansion of its Simple Truth organic line).

• Hospitality & Food Service: organic supply contracts for premium and wellness menus.

• Personal care & textiles: growth in organic textiles and personal-care segments is reported alongside food growth.

• Nutrition & Medical Foods: acquisitions such as Danone → Kate Farms underline demand for certified organic medical nutrition and adult/paediatric formulas.

3) Components of the organic food market

Primary production: certified crops, livestock (dairy, eggs), and pasture/rangeland. USDA notes a concentration of Australia’s organic land in extensive grazing.

Processing & certification: regulatory regimes (USDA NOP, EU Organic Regulation) and third-party certifiers. Regulatory change and equivalence agreements drive trade flows.

Retail & distribution: supermarkets, specialist stores, online platforms, and private labels (e.g., Simple Truth, Great Value, retail organic lines).

Innovation: plant-based formulations, cleaner-label functional beverages, organic-ready medical nutrition and traceability tools (databases and organic-specific HS codes).

4) Regional analysis — dominating vs fastest-growing regions

Dominating regions (by retail value and market maturity)

• United States (dominant retail market): OTA reports U.S. organic retail sales hit $71.6B in 2024, with produce the largest category. “U.S. sales of certified organic products accelerated in 2024... $71.6 billon in 2024.” 

• European Union (large, diversified market): EU is the second largest regional market (FiBL/EU statistics), and the European Commission set a strategic target of 25% organic farmland by 2030. “The Commission considers it a key tool... set the target of having 25 % of the EU's agricultural land organically farmed by 2030.”

Fastest-growing regions (by acreage and growth rates)

• Asia-Pacific (notably China and Australia): China has become third largest market by growth; FiBL/industry sources show rapid expansion and rising retail demand. Australia leads in organic land area by a wide margin — 131M acres of certified and transitioning land in 2022. “Australia has the most organic and transitioning to organic acreage (131 million acres).”

Top countries to watch (by region):

• North America: United States — highest retail value ($71.6B in 2024).

• Asia-Pacific: China and Australia — China as a fast-emerging retail market; Australia as largest organic land holder (131M acres).

5) Key players and recent strategies / deals

Leading & emerging companies (with product/innovation links):

• Danone — Danone will retain a non-consolidated minority stake in the business. The closing of the transaction is subject to customary conditions.

• General Mills (Annie’s) — product innovation and brand-level organic offerings under its Accelerate strategy. “General Mills is executing its Accelerate strategy to drive sustainable, profitable growth...” 

• Kroger — expanding Simple Truth Organic private label and fresh organic assortments to capture value-seeking shoppers.

6) Future prospects

• Near term (next 3–5 years): OTA projects a steady CAGR of 5.1% for organic through 2029; retailers will continue to widen organic private labels while regulated markets (EU, US) will refine equivalence and trade codes to improve traceability.

• According to the study of Next Move Strategy Consulting, the global organic food market is projected to reach USD 604.83 million by 2030, growing at a CAGR of 13.48% from 2023 to 2030. Organic food includes agricultural products produced with minimal use of synthetic chemicals such as pesticides, fertilizers, and genetically modified organisms (GMOs).

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