global awareness with organic food limited to few countries

• Global awareness with organic food
• Segments of organic food market
  • Food Type
  • Region
• Dynamic of organic food market
• Recent trends in the organic food sector

Global awareness with organic food

The popularity and awareness with organic food has been increased because of its multiple health benefits. These naturally grown fruits, vegetables, eggs, or meat helps build our immune system. These benefits have increased the demand of such foods in the market. This is one of the major attributors behind the growth of the market. Moreover, improved distribution channel and rise in the income level among the population is predicted to be another major driving factors for the global organic food market during the forecast period.

The production cost of the organic food is typically higher because of labor inputs and greater diversity of enterprises. This increases the retail price, which is predicted to be the biggest restraint for the global market growth in the forecast period.

The coronavirus catastrophe has created a sudden rise in the demand for organic and sustainable foods. The sales of organic foods have seen a hefty increase all across the world due to rising awareness about consuming healthy food. 

New York, USA, March 08, 2022 (GLOBE NEWSWIRE) — According to the report published by Research Dive, the global organic food market is envisioned to generate a revenue of $416,049.7 million and rise at a CAGR of 12.4% throughout the estimated period from 2020-2027

Segments of the Organic Food Market

The report has been divided the organic food market into segments based on food type and region

Food Type: Fruits and Vegetables Sub-Segment to be Most Profitable

Based on food type, the organic food market is divided into several sub-segments namely, fruits and vegetables, meat, fish and poultry, dairy products, frozen and processed foods, and others. Among these, the fruits and vegetable sub-segment valued for $63,549.4 million in 2019 and is predicted to be most lucrative and grow at a CAGR of 12.1% over the forecast period. This is mainly because there is no use of chemical fertilizers or chemical pesticides in the production of organic fruits and vegetables. Furthermore, the rising cultivation of various organic fruits and vegetables all across the globe to meet the demand for various organic products is expected to bolster the growth of the organic food market sub-segment during the analysis timeframe.

Region: Asia-Pacific Region to Have Maximum Share of the Organic Food Market

Based on region, the organic food market is divided into regions, such as North America, Europe, Asia-Pacific, and LAMEA. Among all classified regions, the Asia-Pacific region accounted for $21,712.9 million in 2019 and is expected to grow at a CAGR of 16.4% during the forecast period. The strong existence of several manufacturers of organic food in this region is projected to create various growth opportunities for the regional growth of the organic food market during the estimated period.

On the other hand, the North America region generated $59,305.4 million in 2019 and is expected to rise at a CAGR of 13.1% during the analysis timeframe. This is mainly due to the increasing demand for organic food among the population of this region. In addition, the presence of a large number of leading retail shops in this region such as Costco, Walmart, and many others, is expected to drive the regional growth of the market over the forecast time period. 

Dynamics of the Organic Food Market

With the growing awareness with organic food among millennials about the multiple benefits of using organic food, owing to the absence of any kind of chemicals, fertilizers, or preservatives in their production, the market is predicted to experience a remarkable growth during the forecast period. Moreover, the increase in the income level among the population and enhanced distribution channels are the factors expected to amplify the growth of the organic food market over the analysis period. However, the high cost of organic food because of larger labor inputs and greater diverseness of industries may hinder the growth of the market during the analysis estimated timeframe.

Overall retail sales share as shown below

Recent Trends in the Organic Food Sector

The Government of India is promoting and encouraging the awareness with organic food and farming by offering financial support to farmers for adopting organic farming. Numerous government policies such as National Food Security Mission (NFSM), Mission for Integrated Development of Horticulture (MIDH), Mission for Sustainable Agriculture (NMSA), and Rashtriya Krishi Vikas Yojana (RKVY) have been executed to encourage the organic food production. The Indian government has also executed the National Programme for Organic Production (NPOP) which includes approval programs for certification bodies, policies for organic production, promotional campaigns for organic farming, and many more.

Moreover, according to the U.S. Families’ Organic Attitudes and Beliefs Survey (2017) survey, America’s 75 million millennials are now consuming organic foods. In addition, people in the age group of 18 to 34 years are the biggest group of organic food purchasers in America. At present, only 25% of millennials are parents, this will rise to 80% in the next 10 to 15 years, which can be a game-changer for the organic food sector. 

Moreover, in May 2019, Nestle India, the World’s major food and beverage brand, has announced its foray into the organic food sector. In addition, in April 2020, Arla Foods Ingredients, a foremost whey ingredient provider for baking, infant nutrition, medical applications, dairy, and sports nutrition, has introduced the first-ever organic micellar casein isolate for aiding manufacturers to cope with the demand for natural, organic, and functional protein foodstuffs. Additionally, in July 2020, Phalada Pure and Sure, India’s foremost organic food producer, has developed an amusingly refreshing organic coconut water drink. This newly developed energizer is loaded with vital nutrients and a significant amount of calcium, potassium, electrolytes, and magnesium. This is awesome for Indian organic companies to boost the awareness with organic food in all ranges from child to old. Consumer attitude and behaviour towards organic food is now changed. They are now interested inconsuming more of organic food than the conventional counterpart one.

India is bestowed with lot of potential to produce all varieties of organic products due to its various agro climatic conditions. In several parts of the country, the inherited tradition of organic farming is an added advantage. This holds promise for the organic producers to tap the market which is growing steadily in the domestic and export sector.

As per the available statistics, India’s rank 8th in terms of World’s Organic Agricultural land and 1st in terms of total number of producers as per 2020 data (Source: FIBL & IFOAM Year Book, 2020).

After analyzing the input of 2.8 million organic producers around the globe, India continues to be the country with the highest number of producers (1,149,000), followed by Uganda (210,000), and Ethiopia (204,000).