Organic Food & Beverage – A Medium to Better Health

Posted in Food by Adolf on Aug 25,2021 1524

Right from learning about good dietary habits to adapting to a well-balanced lifestyle, we are all becoming increasingly health conscious. As fitness and overall wellbeing takes priority, more and more 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.

With the aim to reduce our carbon footprint to potential scientific benefits, there are many other reasons for us to turn towards organic food than conventional produced food. Organic foods are made by using methods of organic farming, which does not involve modern procedures such as chemical fertilizers and pesticides. These foods do not use industrial solvents, chemical food additives, artificial materials and conditions, such as chemical ripening, food irradiation, and genetically modified ingredients.

Moreover with growing parental concerns over the harmful effects of pesticides, antibiotics and hormones on children, and avoiding processed food and artificial ingredients, the organic food industry has grown consistently over the years and managed to create a foothold in the market. As a plus point, organic food products are easily available in local markets. 

Trends Driving the Organic Food and Beverage Market 

The term 'organic' has gained much popularity since the last decade, which refers to the process of how certain foods are produced. Organic food is grown without the use of synthetic chemicals, such as human-made pesticides and fertilizers, and does not contain genetically modified organisms (GMOs).

The organic foods & beverage industry has grown into a multibillion-dollar industry with distinct production, processing, distribution, and retail systems. The global market is a home to organically produced food range of fruits & vegetables, meat, fish & poultry, dairy products, and frozen & processed products while the beverage segment includes a range of dairy alternative, coffee & tea, beer & wine among others. Growing adoption of organic food & beverages owing to associated health benefits and eco-friendly characteristics is expected to drive demand over the forecasted period.

In the year 2015, the market was valued at US$ 106.21 billion. The increasing awareness about health benefits associated with the consumption of organic products has been driving the demand over the period. Amidst the global pandemic crisis and the indefinite lockdown across nations, the consumer food & beverage industry first witnessed a high demand for household staples, healthy food items, and consumables with longer shelf lives.

In the year 2020, the market experienced a YOY growth at a rate of 13.24%. In addition, regulatory support for organic farming is expected to have a positive influence on the market by improving supply and product quality. Organic foods and beverages offer ample advantages over conventional foods such as health benefits, free of harmful chemicals, and others. The organic food market has a high share of organic food compared to organic beverages, dominating the market with a share of over 90% since 2015. With the increase in awareness and easy availability, the organic beverage segment has gained more acceptances in the market and reach over a value of US$ 30 billion by the end of the forecasted period.

The organic fruits and vegetable segment registered the highest market share of 40.35% of the total market share in the year 2020. The rapid growth of demand for fresh and healthy foods drives the market to take a hike.

There was an increase in organic agricultural land in all regions. Currently, North America and Europe are the largest markets for organic food and beverages, owing to the influential presence of the target population in the region. By the end of 2026, it is expected that the Asia-Pacific region would witness significant growth. The Asian market has a significant amount of imports of processed organic food and beverages from the developed countries of Europe and North America. The industrialized and developed countries such as Australia, New Zealand, Japan, Singapore, Hong Kong, and Korea are major markets for organic foods and beverages in the Asia Pacific. There is also an increase in demand for products in developing countries like India and China owing to the growing awareness about the benefits of organic food and beverage.

The organic food and beverages market revealed product line expansion as the key growth strategy, followed by mergers & acquisitions, partnerships, and joint ventures. Several companies have developed innovative products to enhance their product portfolio. This strategy is widely adopted by various companies to increase their market outreach and serve global customers. With the establishment of exclusive diet centres, untapped geographical regions such as India and South Africa are offering a rising demand.      

Owing to the rising global food and water issues due to environmental and socio-economic problems, consumers are constantly looking out for organic products. The organic food and beverages market has been positively accepted by the people, as the food grown is healthy and more nutritious. The advancement in the technology and new innovative products are regularly hitting the market and therefore the organic food Industry is flourishing.

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