Organic food and beverages market size is estimated to grow by USD 310.08 billion between 2022 and 2027, North America is estimated to contribute 35% to the market growth, Technavio

NEW YORK, March 3, 2024 /PRNewswire/ -- The organic food and beverages market size is forecast to increase by USD 310.08 billion from 2022 to 2027, at a CAGR of 15.85%, according to the recent market study by Technavio. North America is estimated to contribute 35% to the growth of the global market during the forecast period. Since vegans only consume plant-based products, the rising vegan population in the US will also help the regional organic food and beverage market expand over the forecast period. Two to six percent of US consumers consider themselves vegetarians. Celebrities are also becoming more and more pro-vegan in America. Additionally, the number of US startups providing vegan nutrition is growing. As consumers believe they are healthier than regular organic foods and beverages, the demand for organic food and drink is rising in the area. During the forecast period, this will also aid in the market's expansion. During the forecast period, there is also expected to be an increase in the number of new players offering products made from organic foods and drinks. View PDF sample

Segment Overview

The market is segmented by type (organic fruits and vegetables, organic dairy products, organic prepared foods, organic meat, and others), distribution channel (offline and online), and geography (North America, Europe, APAC, Middle East and Africa, and South America).

Segmentation by application (Inclusion/Exclusion)

• The market share growth by the organic fruits and vegetables segment will be significant during the forecast period. Over the course of the forecast period, the segment's growth is anticipated to be fueled by the growing concerns surrounding artificial preservatives and additives. Originating in developed nations like North America and Europe and later spreading to developing nations like China and India, organic foods are gaining popularity worldwide. Fresh fruits and vegetables that are organic have more advantages over conventional, non-organic fruits and vegetables. Despite their high price, these benefits are driving up demand for organic fresh fruits and vegetables. Hence, during the forecast period, an increase in the consumption of organic fruits and vegetables is anticipated  View PDF sample

Rising number of new product launches. 

Successful new product launches will boost vendors' revenue streams and market shares. For instance, Grain Forests' new organic products were introduced in July 2022 in an effort to connect the remote farm with the city. Moringa powder for daily nutrition, sprouted ragi for babies, a health mix for diabetics, and ragi dosa for a filling breakfast are just a few of the new additions. Similarly, the first zero-sugar organic ultra-filtered milk was introduced in 2021 by Maple Hill Creamery, America's original 100% grass-fed organic dairy brand. With its most recent product innovation, Maple Hill offers consumers an organic milk option that contains no sugar, no additional sweeteners, and no carbohydrates. Thus, the rising number of new product launches in the various segments of the market will drive the growth of the market during the forecast period. Technavio's SUBSCRIPTION platform

Vendor Landscape

Technavio has extensively analyzed 15 major vendors, including Agrowave Organic Vegetable and Fruits, Amys Kitchen Inc., Archer Daniels Midland Co., Ardent Mills LLC, Arla Foods amba, AUGA Group AB, Aurora Organic Dairy, Bunge Ltd., Cargill Inc., Danone SA, Del Monte Pacific Ltd., General Mills Inc., Hometown Food Co., Kellogg Co., Maple Hill Creamery LLC, Mehrotra Consumer Products Pvt. Ltd., Nestle SA, ORGANIC India Pvt. Ltd., Organic Valley, PepsiCo Inc., Premium Brands Holdings Corp., PS Organic, The Coca Cola Co., The Hain Celestial Group Inc., The Hershey Co., United Natural Foods Inc., and Drakes Organic Spirits Inc.

Key Benefits for companies

• The report offers information on the criticality of vendor inputs, including R&D, CAPEX, and technology.
• It also provides detailed analyses of the market's competitive landscape and vendors' product offerings.
• The report also provides a qualitative and quantitative analysis of vendors to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak. Expand operations in the future - To get requisite details, ask for a custom report.

Analyst Review

In recent years, the organic food and beverages market has experienced a significant surge in demand, driven by consumers' growing concerns about health, environmental sustainability, and ethical sourcing practices. As a result, various aspects such as non-GMO products, accessibility, and the rise of niche stores have come into focus.

Consumers are increasingly turning to farmers' markets and mainstream supermarkets alike in search of organic options, while also exploring the convenience offered by online retailers and even fast-food chains expanding their organic offerings. This shift underscores a heightened awareness of the environmental impact of conventional agricultural practices, including soil degradation, water pollution, and threats to biodiversity.

Against this backdrop, the adoption of organic farming methods and sustainable practices is gaining traction, aiming to address concerns related to soil health, water resources, and wildlife habitats. Consumers are increasingly prioritizing products made with organic ingredients over those containing synthetic ingredients, which are often associated with health risks due to exposure to synthetic chemicals, pesticides, and antibiotics.

Government participation through guidelines, incentives, and regulatory support is crucial in promoting organic farming and ensuring compliance with stringent regulations. This involves addressing challenges such as conventional farming practices, water contamination, and the emergence of pesticide-resistant pests.

Moreover, there's a growing emphasis on enhancing soil fertility, mitigating human diseases linked to agricultural practices, and undertaking cleanups to combat dead zones in water bodies. Biological farming practices are gaining momentum as alternatives to conventional methods, further supported by supply trade regulations aimed at fostering sustainability.

However, the high cost of production remains a barrier for many organic producers, impacting operations, shelf life, and ultimately pricing. Despite this, the market continues to expand, driven by consumer preferences for packaging, logistics, and distribution channels that prioritize sustainability and transparency.

As the market evolves, stakeholders must navigate complexities such as market concentration, changing consumer bases, and segment-specific dynamics, including the fruits and vegetables and organic meat, fish & poultry products segments. Attention to detail regarding artificial preservatives, additives, and emerging trends in organic beverages like non-dairy alternatives, coffee & tea, beer & wine, juices, and soft drinks is essential.

From traditional supermarket/hypermarket to brick-and-mortar stores and online distribution channels, including subscription boxes and online food delivery platforms, the industry must adapt to shifting internet penetration and target marketing strategies to capitalize on the growing demand for organic products among smartphone-savvy consumers. View PDF sample

Related Reports: 

• The organic food preservatives market is estimated to grow at a CAGR of 4.71% between 2022 and 2027. The size of the market is forecast to increase by USD 367.66 million.
• The functional foods and beverages market is estimated to grow at a CAGR of 7.29% between 2022 and 2027. 

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product Type
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Company Landscape
12 Company Analysis
13 Appendix

About US
Technavio is a leading global technology research and advisory company. Their research and analysis focus on emerging market trends and provide actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contact
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio

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