Organic Food Market

Global Organic Food Market Size (2024 to 2029)

The size of the global organic food market is expected to be worth USD 226.77 billion in 2024 and USD 402.18 billion by 2029, growing at a  CAGR of 12.2% from 2024 to 2029.

In the world of the latest technology, farmers are reverting to age-old farming practices for a more significant benefit to the human race. In this world, everything is powered by modern technologies.  A new crop of well-conscious customers are increasingly aware that pesticides and other food additives can have harmful effects, and producers are now reporting old agricultural practices of producing what is considered organic food.

Current Scenario of Organic Food Market

The foods that are produced with the utmost care and without using any chemicals are generally referred to as organic foods products. Today’s generation is seeking to eat only fresh food products that are healthy and chemical-free. The use of human-made synthetic fertilizers is showing many harmful results on the well-being of humans, which is significantly ascribed to the production of high quantities of organic food products worldwide. Fresh foods, meat, and dairy products also come under organic foods, where the use of synthetic chemicals is restricted for those food products. The foods manufactured in this process are completely organic and do not pose any threat to the environment throughout the process. Government authorities are also greatly supporting organic food products as they are likely to reduce carbon footprints, which is a substantial factor that needs to be implemented in today’s world for a better future.  

MARKET DRIVERS

The increasing popularity of the easy availability of organic food products in urban areas in developed and emerging countries is a major factor propelling the growth rate of the market. In urban areas, the prominence of eating only healthy food to maintain well-being in their busy lifestyle schedule is growing. Several research reports show that organic food products are directly attributed to lowering the risk of several chronic diseases. The rising prevalence of many chronic illnesses, especially among young people, is subjected to changes in lifestyle that drastically impelled the increase of the production rate of organic foods. Creating awareness through social media is also one of the prominent factors that is leveraging the market’s growth rate. Social media influencers have been putting efforts into spreading awareness of the advantages of eating organic food in recent times, and people are also more inclined to adopt these changes in their daily routines. Going back to adopting the traditional methods in producing food products, especially in farming using modern equipment, is gearing up the growth rate of the market. In those traditional days, all the food products used to be highly organic, but with the rising global population, the need to produce a high quantity of food products using different chemicals and pesticides improves productivity. This has led to the production of harmful food products that also impacted the environment negatively. The rise in awareness towards going back to the traditional methods of producing food products is anticipated to promote the growth rate of the market. The food and beverage industry is giving many people the opportunity to launch various food products according to consumer preferences, which also elevates the market’s growth rate.  

In the most developed countries like US, people apparently looking for additive or chemical free food products. According to the latest statistics, more than 30% of the Americans prefer only organic food products which is amplifying the market’s growth rate in the coming years.  

The potential need to adopt organic food products due to the rising risks associated with the chemicals and pesticides used for inorganic food products is setting up a positive scope for the organic food market to grow in the coming years. It is highly important to adopt new techniques in the food and beverage industry to reduce environmental pollution through the use of various harmful chemicals. Organic foods are highly beneficial for people who have allergic symptoms to foods, chemicals, and preservatives. People who completely depend on eating only organic food products can see many health benefits that they encounter, creating huge opportunities for the market. The rising number of stores selling organic food products rather than conventional food products, along with the growing people’s preferences towards them, is escalating the growth rate of the market.  

MARKET RESTRAINTS

Lack of proper awareness of the use of advanced techniques in producing organic food products slowly degrades the growth rate of the market. Producing organic food requires skilled professionals to look after the process using the latest technologies, and the lack of those people in the food and beverage industry can pose challenges for the market's key players. Along with this, the lack of easy availability of the supplements needed for the food products due to disruptions in the supply chain can hamper the market’s growth rate.  

High cost of the organic food products where common people could not afford those is another factor that is impacting negatively on the growth rate of the organic food market. The procedure involved in producing the organic foods is bit difficult as there are high chances to get contaminated in few days. These food products should be delivered in meantime as there will be no chemical or preservatives used to store for longer days. This could impede the growth rate of the organic food market.  

The potential need to adopt organic food products due to the rising risks associated with the chemicals and pesticides used for inorganic food products is setting up a positive scope for the organic food market to grow in the coming years. It is highly important to adopt new techniques in the food and beverage industry to reduce environmental pollution through the use of various harmful chemicals. Organic foods are highly beneficial for people who have allergic symptoms to foods, chemicals, and preservatives. People who completely depend on eating only organic food products can see many health benefits that they encounter, creating huge opportunities for the market. The rising number of stores selling organic food products rather than conventional food products, along with the growing people’s preferences towards them, is escalating the growth rate of the market.  

REPORT COVERAGE 

SEGMENTAL ANALYSIS

Global Organic Food Market Analysis By Product Type   

The organic vegetables segment is greatly influenced in holding the prominent share of the market, whereas the organic fruits segment is likely to have the highest CAGR by the end of 2029. Consumers' awareness of constantly relying on only eating healthy food products rather than chemically produced plant products is inclined to leverage the growth rate of the market. Fruits and vegetables are rich in nutrients and promote health benefits that eventually lower the risk of cardiovascular diseases and other chronic diseases, greatly attracting customers to buy organic fruits and vegetables even though they are high in price.  

Global Organic Food Market Analysis By Form 

The fresh segment is ruling with the dominant share of the organic food market. Consumer preferences for fresh food products that are fresh, organic, and naturally made substantially increase the growth opportunities for the fresh segment. The organic products are frozen to make their shelf life a little longer but do not use any kind of preservatives. Therefore, the frozen segment is also likely to have prominent growth opportunities in the coming years.  

Global Organic Food Market Analysis By End-User   

Residential segment is inclined to have largest share of the organic food market. The demand for the organic food products is very high in residential areas where the launch of various applications in smart phones to deliver the food products to the door step is attributed in lavishing the growth rate of  the market

As the market trend shifts, numerous people are deeply interested in organic and natural goods that are necessary to stimulate the world market in organic fruit and vegetables. During the prediction period, the market is expected to raise awareness of the health benefits of organic fruit and plants. It should also be hoped that the awareness of related health benefits in the form of organic nutrients, nutritious breakfast cereals, baby food, etc.

REGIONAL ANALYSIS

North America is expected to hold the dominating share of the organic food market during the forecast period due to the growing popularity of organic food and organic beverages and the growing awareness of the health benefits of consuming organic food products. According to the Organic Trade Association, the United States is the largest market for organic food, accounting for more than half of the market for organic products consumed worldwide. The rapid growth of the food and beverage industries in the region is expected to lead to an increase in the demand for organic food by this industry, which is expected to further contribute to the growth of the organic food market Size.

Europe stands for second in the market with one of the highest amounts of revenue. The Asia-Pacific region is expected to register the fastest growth during the analysis period. Factors such as the growing demand for organic food, the increase in retail stores, the increase in purchasing power parity, and the expansion of the middle-class population are driving the growth of this segment. Latin American countries offer many expansion opportunities to the main players.

Latin America region is expected to experience significant growth in the organic food and beverage market due to growing consumer awareness, and the increase in organic food and beverage varieties such as organic food and beverage.

Middle East and Africa are one of the main emerging regions, which will generate significant opportunities in the market during the anticipated period due to the increase in the population's disposable income, the changing lifestyle, and the increased preference for quality food products. The region is expected to experience moderate growth during the forecast period due to the above factors.

KEY PLAYERS IN THE ORGANIC FOOD MARKET

Spartan Stores Inc., Clif Bar & Company, Kroger, Inc., Dole Food Co., Inc., Frito-Lay, Newman's Own Inc., Dean Foods, Bio Valley, AMCON Distributing Co, Amy's Kitchen, Whole Foods Industry Inc, Hain Celestial Group Inc. and United Natural Foods Inc. are some of the prominent companies in the global organic food market. 

RECENT HAPPENINGS IN THE MARKET

• Organic Valley and Dean Foods announced the formation of a joint venture that will make Organic Valley dairy products available to more Americans. As of today, this company is open to the public, which will soon make Organic Valley Fresh Milk (HTST) available at more than 140,000 outlets served by Dean Foods' extensive distribution network. In addition to milk, the company offers a portfolio of Organic Valley staples, such as its award-winning organic butter, half and half, and cheese. New lines of Organic Valley single-serving milk and ready-to-drink protein shakes will also be offered.
• the fresh vegetable division of Dole Food Co., the North American leader in value-added salads and the market leader in salad kits, has entered a new partnership with Safeway Fresh Foods that will expand the company's product line to include new ideas in fresh fruits and vegetables. Vineland, NJ-based Safeway, and Dole will jointly develop new products for consumers looking for fresh, healthy food options that taste great.
• The sales growth of the organic food segment surpassed that of non-organic products in 2015, according to the organic market report published by Soil Association.

DETAILED SEGMENTATION OF GLOBAL ORGANIC FOOD MARKET INCLUDED IN THIS REPORT   

This research report on the global organic food market has been segmented and sub-segmented based on product type, form, end user & region. 

By Product Type  

• Organic Fruits
• Organic Vegetables

By Form

• Fresh
• Frozen

By End-User  

• Residential
• Commercial

By Region

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East and Africa