Organic Food & Beverages Market by Product Outlook (Organic Food and Organic Beverage), and by Distribution Channel (Supermarkets/Hypermarkets, Convenience Stores, Specialty Stores, Online Stores, and Other Distribution Channels)- Global Opportunity Analysis and Industry Forecast 2024-2030

Market Overview

The global Organic Food & Beverages Market size was valued at USD 248.84 billion in 2023 and is predicted to reach USD 585.0 billion by 2030 with a CAGR of 13.0% from 2024-2030. The Organic Food & Beverages market is defined by products grown and processed adhering to the principles of organic farming. These principles exclude the use of synthetic pesticides, fertilizers, genetically modified organisms (GMOs), and emphasize the maintenance of ecological balance, biodiversity, and soil health.

The market includes a wide range of consumables like fruits, vegetables, grains, dairy, meat, and beverages such as juices, teas, coffees, and alcoholic drinks. All these products are produced under stringent regulations that ensure they are free from harmful chemicals and genetically modified ingredients. The certification process for these products is rigorous, involving regular inspections to ensure compliance with established organic standards. This market caters to consumers seeking health-conscious and environmentally sustainable food and beverage options. 

Market Dynamics and Trends

The increasing number of chemical poisoning cases in different parts of the world has contributed to the growing demand for the organic food. Consumers are becoming more aware of the potential risks associated with conventional farming practices that involve the use of synthetic pesticides, herbicides, and fertilizers. The perception that organic food and beverages is produced without these harmful chemicals has led to a shift in consumer preferences towards organic products. For instance, in May 2022, the World Health Organization (WHO) published a report stating that approximately 600 million individuals, which accounts for nearly one in ten people globally, experience illness as a result of consuming contaminated food.

Moreover, the support and implementation of regulations and certifications by government bodies and organizations have played a significant role in driving the organic food and beverage market. These regulations ensure the authenticity and quality of organic products, instilling consumer confidence and promoting market growth.

Additionally, the rise in chronic diseases, such as obesity, diabetes, cardiovascular diseases, and certain types of cancer, has heightened consumers' awareness of the importance of maintaining good health. Many individuals are proactively seeking ways to improve their well-being and reduce the risk of chronic diseases. Organic food and beverages are perceived as healthier options due to their lack of synthetic chemicals, pesticides, and genetically modified ingredients. They are often seen as a way to support overall health and well-being.

However, the high production cost that raises the final retail price and the short shelf life of organic food and beverage products are some of the major factors restraining the growth of the organic food and beverages market. On the contrary, the increasing use of organic fruits and vegetables as a natural ingredient in the personal skincare and beauty care industry along with the rising demand for ready-to-use products is expected to create ample number of opportunities for the market in the future.  

Market Segmentation and Scope of Study

The global organic food & beverages market is segmented on the basis of product outlook, distribution channel, and geography. Based on product outlook the market is divided into organic food and organic beverage. On the basis of organic food, the market is further sub divided into fruits & vegetable, meat, fish & poultry, dairy products, frozen & processed food, and others. On the basis of organic beverage, the market is further sub divided into non-dairy beverages, coffee & tea, beer & wine, and others. Based on distribution channel the market is divided into supermarkets/hypermarkets, convenience stores, specialty stores, online stores, and other distribution channels. Geographical breakdown and analysis of each of the aforesaid classifications include regions comprising of North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

North America dominates the global organic food and beverages market and is expected to remain dominant in the market during the forecast period. This is attributed to the growing number of health-conscious consumers, shifting their food and beverage choice priorities and focusing on consuming healthier foods that are environmentally friendly. According to the Organic Trade Association (OTA), the U.S. organic foods and vegetables sales reached at USD 62 billion in 2020, foods with organic and natural labels are witnessing an increased demand compared to other conventionally grown food products, including fruits and vegetables in 2021.

Moreover, the rising prevalence of chronic diseases such as obesity, diabetes, cardiovascular diseases, and certain types of cancer is driving the organic food and beverage market in North America. Consumers are increasingly aware of the impact of diet on these health conditions and are seeking healthier alternatives like organic products to improve their dietary habits and overall well-being.

On the other hand, Asia Pacific is expected to show a steady rise in the organic food and beverages market during the forecasted period. This is attributed to the several governments initiatives promoting organic farming and production through supportive policies, subsidies, and certification programs. For instance, the Indian government’s Paramparagat Krishi Vikas Yojana promotes cluster based organic farming with PGS (Participatory Guarantee System) certification. Cluster formation, training, certification and marketing are supported under the scheme. Assistance of USD 604.85  per ha /3 years is provided out of which 62% (USD 375) is given as incentive to a farmer towards organic inputs. These initiatives helps to boost organic agriculture and create a favorable market environment for organic products.

Furthermore, countries such as India and China are emerging as key players in the global organic food and beverage market, steadily becoming capitals of organic crop production and consumption. The rising consumer awareness about health and sustainability is accelerating the demand for organic products in these regions. For instance, in August 2022, as reported by Ministry of Agriculture, India exported a total of 1,978,460.38 million tonnes of organic products in 2019-20 and 2021-22, valued at USD 2,480.24 million. The data also states that on an average, India’s organic product export is valued at USD 827 million every year.

Competitive Landscape

Various market players operating in the organic food & beverages market include Hain Celestial Group Inc., Whole Foods Market L.P., Dole Food Company, Inc., Dairy Farmers of America, Inc., General Mills Inc., Danone S.A., United Natural Foods, Inc., Gujarat Cooperative Milk Marketing Federation (Amul), The Hershey Company, Amy’s Kitchen, Inc., Organic Valley, Conagra Brands, Inc., Nestlé, Eden Foods Inc., and SunOpta. These manufacturers are adopting various strategies such as acquisition and product launch to maintain their dominance in the global organic food & beverages market.

For instance, in May 2022, Amul launched a portfolio of organic agricultural products which includes organic fruits, vegetables, cereals, pulses, and spices. The introduction of these organic offerings by Amul demonstrates the growing demand for organic food and beverages in the market. This move aligns with the increasing interest and preference for organic products in the organic food and beverages market.

Furthermore, in February 2021, Danone acquired, Your Heart, a top plant-based pioneer player. This strategic acquisition aligns with Danone's commitment to offering diverse and sustainable plant-based options, strengthening its position in the growing organic food industry.   

KEY BENEFITS

• The report provides quantitative analysis and estimations of the organic food & beverages market from 2024 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep-dive analysis of the organic food & beverages market including the current and future trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the organic food & beverages market is provided in the report. 

• Competitive analysis of the players, along with their market share is provided in the report. 

• SWOT analysis and Porter’s Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of the roles of stakeholders.

KEY MARKET SEGMENTS

By Product Outlook

• Organic Food 

  • Fruits & Vegetable 

  • Meat, Fish & Poultry 

  • Dairy Products

  • Frozen & Processed Food

  • Others

• Organic Beverage 

  • Non-Dairy Beverages

  • Coffee & Tea

  • Beer & Wine

  • Others

By Distribution Channel

• Supermarkets/Hypermarkets

• Convenience Stores

• Specialty Stores

• Online Stores

• Other Distribution Channels

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden        

  • Norway        

  • Russia        

  • Rest of Europe    

• Asia Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia Pacific

• RoW

  • Latin America

  • Middle East

  • Africa

REPORT SCOPE AND SEGMENTATION:

Test