Organic Fruits And Vegetables Market was valued at USD 41.21 billion in 2023 and is anticipated to reach a valuation of USD 61.54 billion by 2028 and is predicted to register a CAGR of 8.35% during (2023-2028)
Organic food comes from farming practice that doesn't utilize synthetic fertilizers, pesticides, growth regulators, or feed additives in cattle. Organic food does not include toxic pesticides, synthetic fertilizers, genetically modified organisms (GMOs), antibiotics, or growth hormones, giving consumers peace of mind. Furthermore, organic food assures that strict organic agriculture guidelines in terms of impact on land, water, and air have been followed, aiding in environmental protection.Organic fruit and vegetable sales surged in 2020, despite higher prices than non-organic items and the greatest global GDP decrease in decades. Organic fruits and vegetables rose faster than any other wellness category. Beginning in 2020, when most restaurants closed and home cooking became the norm due to COVID-19, people altered their food shopping and consumption behaviors. According to the US Department of Agriculture, German shoppers purchased 22% more organic fruits and vegetables in the same year (USDA).
Increasing public awareness of the health benefits linked with the consumption of organic food. These factors are anticipated to contribute to the Organic Fruits And Vegetables Market growth.
As individuals want to enhance their overall health and become more aware of the detrimental effects of synthetic additives, demand for organic fruits and vegetables has risen in recent years.
Because plants include manmade chemicals like pesticides and antibiotics, eating regular meals poses a multitude of health risks. An increase in production has stemmed from growing demand for organic products. Organic agricultural management is expected to span roughly 40 million acres (16 million hectares) by 2021, according to USDA estimates. The engagement of the government in assisting customers in identifying between falsely labelled and genuine products has also assisted overall market development. Chemicals, herbicides, growth hormones, and other artificial ingredients are likewise prohibited by government rules all across the world.
Furthermore, under the National Horticulture Mission, the Indian government encourages organic farming by offering incentives to organic food producers (NHM). Farmers in India will receive Rs. 10,000 per hectare for a total of four hectares per user, as well as Rs. 5.00 lakh for organic farming accreditation for a group of 50 hectares. The disadvantages of traditional farming methods have far surpassed the advantages. Pesticide-resistant pests, reduced soil fertility, prevalent human illnesses, costly cleanups, and dead zones are just a few of the side effects of traditional farming. Scheme called for biological farming and supply trade laws should benefit the organic food and beverage industry over time.
The high cost of production and operations, as well as the shorter shelf life, are likely to impede market growth during the forecast years. Furthermore, the high cost of the product prevents widespread client acceptance, and the limited product selection options also limit market expansion. Furthermore, the Organic Fruits and Vegetables Market's growth is constrained by high packaging, shipping, and distribution costs to extend shelf life. These are some of the restraints on the Organic Fruits and Vegetables Market growth.
In June 2021, the Kraft Heinz Company announced the purchase of Assan Foods from Kibar Holding, a privately held Turkish company. The company wants to increase its overseas market boundaries with this acquisition while focusing on taste enhancement and culinary service.
The Organic Fruits And Vegetables Market has been divided by crop into, organic fruits and organic vegetables. The crop segment of the Organic Fruits And Vegetables Market is dominated by the organic fruits category with the highest market share. Fruits and vegetables have risen to the top of the market, accounting for 40% of total organic food revenue in 2021. Consumption of organic vegetables began in Western countries such as North America and Europe, and has subsequently spread to emerging economies such as India and China. North America and Europe are the primary consumers of organic food. Organic meat, fish, and poultry products, on the other hand, are predicted to have the highest CAGR of 14.9 percent by 2027. Rising customer concerns about artificial preservatives and chemicals are projected to drive product demand in the future years. The rising popularity of veganism, as well as its low-fat content, is predicted to aid the segment's market expansion.
By Distribution Channel:
The offline distribution channel will account for more than 64.9 percent of the global market in 2021. These stores sell a wide variety of branded and home goods which come from reputed farms. Brick-and-mortar stores in the offline section include hypermarkets/supermarkets, specialty stores, franchisee stores, and club stores. The convenience of this distribution channel, as well as its ability to provide popular brands, has benefited this segment's growth. Organic fruits and vegetables sales are being driven through this channel, particularly in emerging countries, by the expanding number of supermarket and hypermarket chains, as well as the shifting retail landscape.
The Organic Fruits And Vegetables Market Report includes the segmentation of Regions:
Organic fruits and vegetables are most popular in North America, followed by Europe and Asia-Pacific. As of 2018, Mexico had roughly 39,763 hectares of land suitable for organic fruit and vegetable production, accounting for around 3% of total agricultural land available for the cultivation of fruits and vegetables. Organic fruits and vegetables are not in high demand in Mexico due to higher prices and customers' lack of understanding of the differences between organic and conventional products. Though the appearance of these products in modern retail has expanded in recent years, this can be attributed to an increase in affluent consumers' interest as well as the country's growing middle-class population, which may drive the market over the forecasted period.
Consumers from Quebec and British Columbia are the top spenders on organic groceries in Canada, according to the Canada Organic Trade Association, with British Columbians predicted to spend significantly more than the rest of the country.
Europe is in second place, with one of the largest revenue levels in the market. Europe has a major portion of the global Organic Fruits and Vegetables Market, with a big number of plant-based protein manufacturers playing a key role.
German buyers bought 22% more organic fruits and vegetables in the same year, according to the US Department of Agriculture (USDA).
Asia Pacific is predicted to develop at the quickest rate, with a CAGR of 17.5 percent from 2022 to 2027, due to rising demand for ready-to-eat meals among the working class and growing millennia in countries like India. China, India, and Japan are the most important markets in terms of consumer spending on fruits and vegetables. Furthermore, due to less time for preparation and cooking, a considerable growth in demand for frozen food is providing new avenues for organic fruits and vegetables in the regional market for organic frozen food.
Whitewave Foods Company
H.J. Heinz Company
CSC Brands LP (Campbell Soup Company)
General Mills Inc.
Juices International Pty. Ltd.
Z Natural Foods LLC.
Organic Valley Family of Farms
Iceland Foods Ltd.
Green Organic Vegetable Inc.
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