Organic food gives consumer the assurance that toxic pesticides, synthetic fertilizers, and genetically modified organisms (GMOs) are not used in the food production, and the livestock has not been given antibiotics or growth hormones. The production of organic food involves practices that promote ecological balance and aim to conserve biodiversity. These food products do not use any food additive or industrial solvent.

As fitness and overall wellbeing takes priority, people are turning towards organic food and beverages. The concept of growing organic food or organic food farming is not new, as it has been there since a long period of time. It has only gained recognition with advanced technology changing the face of farming methods.

Consumers are becoming more health conscious owing to the harmful effects caused by the presence of chemical pesticides in food products. The toxicity of chemical pesticides in food products can cause cancer, hormone disruption and birth defects. Organic food items are gaining popularity due to straightforward reasons i.e., genetically modified organisms (GMOs) -free content, nutrient richness, zero growth hormones, zero antibiotics, fewer pesticides, improved freshness levels, and better environmental stability. In countries around the world where the organic food market is well developed, consumers show different motives for purchasing these products.

 What Drives the Demand for the Global Organic Food Market?

With the sights of pollution and contaminations everywhere, consumers are on a constant look out for organic products. Organic food and beverages market have struck a chord with the people. By using no pesticides and artificial flavours, the food grown is healthy and more nutritious. There’s a need to stay fit and healthy on everyone’s mind and they are ready to pay a price for it. The advancement in the technology and new innovative products are regularly hitting the market and therefore organic food Industry is flourishing.

Global organic food market was valued at US$167.85 billion in 2020 and is expected to reach US$368.94 billion by 2026 with a CAGR of 14.59% during the forecast period. The global organic food market is mainly driven by increasing health concerns among people due to the growing number of chemical poisoning cases, awareness about the harmful effects of pesticide residues in food and its impact on health, government support through various subsidies, and increasing trend of standardization for organic foods.

The market revenue is expected to grow at a healthy CAGR propelled by staggering demands from the millennial and emerging markets. Technological advances in the Organic Food market enabling efficient production, expanding product portfolio, sophisticated design and packaging, effective operational maintenance, and sales monitoring are key growth drivers. However, complying with stringent regulations and varying standards around the world, growing competition, and inflation estimated to remain above the upper band during the short term in key nations, and fluctuating raw material prices are some of the Organic Food market restraints over the forecast period.

The global organic food is segmented on product type, distribution channel, company, and region. Organic fruits & vegetables are dominating the market with the rise of focus on health followed by organic meat, poultry & dairy, whereas organic beverages is the fastest growing segment in the organic food market. In terms of distribution channel, hypermarket/supermarket is dominating the organic food market followed by departmental stores due to availability of variety of organic products.

Regionally, North America is the leading market followed by Europe. Countries like USA, Germany, France and China are the topmost countries in the global organic food market. In terms of average per capita consumption, Switzerland, Denmark, and Sweden have the highest consumption level. The major players operating in the global organic food market are United Natural Foods, Danone S.A., Inc., Sprouts Farmers Market, Inc., General Mills, Inc., Organic Valley, Inc & Others. To sustain in the market, companies like Danone S.A. launched innovative, convenient formats appropriate for consumption throughout different ages, moments of the day to meet the needs of this new food generation. The company has acquired WhiteWave to enrich offer and enabling wider access to sustainable daily eating practices.

Organic food is different from conventionally grown food because organic food is either grown under a natural system of agriculture, without the use of synthetic fertilizers or they are processed products made from organically produced raw materials. Due to the increased awareness among people to eat healthy, these companies are now upgrading and re-launching existing products.