Organic Vegetables Market

Organic Vegetables Market Size (2022 - 2027)

The Organic Vegetable Market size was valued at $30,772.22 million in 2021 and is expected to reach $60,863.52 million by 2027, registering a CAGR of 8.0% from 2022 to 2027.

The largest, fastest expanding segment in the food industry is Organic Vegetables. The growth rate of the Organic Vegetable market is attributed to growing concerns about food security and farming practices that contribute to a better and more sustainable environment. Organic farming, without chemical fertilizers or pesticides, can generally be identified with farming. Living creatures are closely linked with each other in organic farming. The growing concern of people about pesticides, chemicals, antibiotics, or other chemical residues is a major factor in the shift towards the consumption of organically grown food products. Some elements that affect the demand for Organic Vegetables are the quality of products, food protection, and generally perceived value.

The Organic Vegetable market is growing rapidly, mainly due to growing concerns about food security and farming practices that contribute to a better and more sustainable environment. Organic Vegetables are processed to increase shelf life and convenience of consumption. The increased demand for Organic Vegetables is primarily due to increased production and global consumption. However, the supply of Organic Vegetables is limited to their demand, due to their high production cost. Despite organic plants' greater price consumers are willing to pay extra for organic food, because of the lower use of pesticides and high nutrient value. Hence, it should boost the sales of Organic Vegetables. Organic Vegetables refer to vegetables that contain little or no chemical residue and are certified organic.

MARKET DRIVERS

The largest and most rapidly growing section of the organic food market share is Organic Vegetables. The increased demand for Organic Vegetables is primarily due to increased production and global consumption. Despite organic plants' greater price consumers are willing to pay extra for organic food, because of the lower use of pesticides and high nutrient value. Increased consumer awareness of the health benefits of organic products is expected to drive sales in the Organic Vegetable market. The rapid urbanization of Organic Vegetables market expansion has raised the acceptance of healthy dietary habits and the growing concern for health and the environment.

MARKET RESTRAINTS

However, the supply of Organic Vegetables is limited to their demand, due to their high production cost. The production costs of Organic Vegetables are comparatively higher than those of conventional vegetables. Organic foods typically cost between 20% and 100% more than their conventionally produced counterparts. Organic food is difficult to grow due to the high share and the longer growing time. In addition, the lower yields of these crops and a poor supply chain further increase production costs. One of the main barriers to adopt organic farming is the high registration rate and getting accreditation and certification to become organic farmers. Due to the lower yield of organic production compared to conventional yields, there would be a higher demand for additional natural resources such as land, water to meet the growing demand for Organic Vegetables.

ORGANIC VEGETABLES MARKET REPORT COVERAGE:

Market Segmentation

Organic Vegetable Market - By Product Type:

The fresh Organic Vegetable segment accounted for around one-third, one-third of half of the global Organic Vegetables market share in 2019, and this trend is expected to continue during the forecast period. Direct consumption of vegetables is mainly preferred over processed vegetables to avoid unwanted adulteration and chemical ingredients. Additionally, increasing demand from food and beverage processing companies is expected to drive the growth of the fresh Organic Vegetable market during the forecast period.

Organic Vegetable Market - By End-Use:

The residential segment is expected to reach $ 37,218.04 million by 2026, registering a CAGR of 7.1%. Organic Vegetables are used significantly for non-commercial purposes, such as direct consumption. The increase in disposable income and awareness of the benefits of consuming organic food is expected to drive the growth of the Organic Vegetable market during the forecast period.

Organic Vegetables Market - By Distribution Channels:

The online sales channel segment is likely to have significant growth opportunities in the coming period. The rise of the Internet of Things at the commercial level, increasing globalization and the growing trend of shopping on online platforms are adding to the growth of the product market. Online sales of Organic Vegetables have prompted people to export them from high-producing countries like India and China to low-producing countries like Canada, Spain, and Japan.

Organic Vegetables Market - By Region:

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

In North America, sales of organic food products are driven by an increase in disposable income and a high purchasing capacity of health and related products.

In Latin America, in 2018, around 39,763 hectares of the area were available for organic market gardening, which represents about 3% of the total agricultural land available for vegetable cultivation.

In Europe, the share of the organic area in total agricultural land increased from 2.7% in 2016 to 3.12% in 2018.

Asia-Pacific is the fastest-growing segment due to a growing consumer tendency to support local businesses coupled with growing demand for locally produced products in response to food safety concerns. While health crises and food shortages have a long-term impact on consumer demand, the demand for organic products is increasing rapidly in the region. Rising population and growing awareness over the benefits of Organic Vegetables are also propelling the demand of the market.

Middle East & Africa is esteemed to have a significant growth rate in the coming years.

Key Players

The Major players in the global Organic Vegetable market include:

• White Wave Foods
• HONEY BROOK ORGANIC FARM
• H.J. Heinz Company
• CSC Brands
• General Mills
• Organic Valley Family of Farms
• Grimmway Farms
• Carlton Farms
• Ad Naturam
• Abers Acres
• Devine Organics
• Activz
• Lakeside Organic Gardens

Impact of COVID-19 on the Organic Vegetables Market:

The COVID-19 pandemic has had a positive impact on the market growth due to the growing awareness of healthy and nutritional diets. Hence, this has led to an increase in demand for Organic Vegetables across the world. However, import and export restrictions due to the COVID-19 pandemic have hampered market growth. There is good annual growth mainly due to the resumption of their operations and the adaptation of companies to the new normal while recovering from the impact of COVID-19, which had previously led to restrictive containment measures involving social distancing, remote working, and shutting down of business activities which resulted in operational challenges.

Recent Developments:

• In 2016, Danone S.A. acquired The WhiteWave Foods Co. for $ 12.5 billion.

• In 2015, the merger of Kraft Foods and H.J. Heinz was approved by the boards of directors of both companies, with the approval of shareholders and regulators. The new Kraft Heinz Company is the fifth-biggest in the world and the third-largest in the USA.