The global organic food and beverages market size was estimated at US$ 218 billion in 2022 and is expected to hit around US$ 783.68 billion by 2032 growing at a CAGR of 13.7% during the forecast period from 2023 to 2032.
The increasing awareness regarding health among consumers and the awareness regarding the health benefits provided by the intake of organic foods and beverages will lead to growth in the market. The market for organic food and beverages shall grow during the forecast. The customers are aware of the environmental difficulties and also the risk which is associated with the consumption of inorganic or unclean chemicals. The toxic chemicals which are used for farming give negative consequences and therefore the demand for organic food and beverages is growing.
Due to the outbreak of the pandemic, developing, developed nations and underdeveloped nations across the globe had problems with the demand and supply chain. The pandemic has helped customers in recognizing and introspecting the ill effects of inorganic products. People are resorting to leading a healthier lifestyle and consuming products that are organic or made out of natural ingredients.
There is a huge change in the lifestyle of the people and eating preferences of people. The governments of various nations are also organizing awareness campaigns to spread information regarding the benefits of organic foods and drinks. Major companies in various regions are making investments in order to produce the products internationally which would be organic. Consumers are seeking clean labels for the foods that they eat and the beverages that they drink. The prevailing illnesses like cancer, diabetes, cardiovascular diseases, or any other chronic diseases are going major factors for the customers to shift from inorganic products to more organic or natural products.
Report Scope of the Organic Food and Beverages Market
|Market Size in 2023||USD 246.78 Billion|
|Market Size by 2032||USD 783.68 Billion|
|Growth Rate from 2023 to 2032||CAGR of 13.7%|
|Forecast Period||2023 to 2032|
The vegetables and fruits segment has garnered a revenue share of around 41% in 2022. The fruits and vegetable sector has a great demand in developing as well as developed nations. European countries and North American countries are the largest consumers of organic foods. These nations are trendsetters in consuming organic fruits and vegetables. Just like vegetables and fruit, there is also a growth of 15% in the consumption of organic meat, poultry, and fish products. It would have the highest growth by the year 2030. Consumers are also very concerned about the additives and artificial preservatives that are added to the food and they shall doom in the coming years. Coffee & tea sales are expected to hit a CAGR of 16.5% from 2022 to 2030.
Distribution Channel Insights
The offline distribution channel had a larger contribution of 65% in 2022. Offline stores have a varied range of products. The branded, as well as domestic supermarkets and hypermarkets, also offer many organic foods and beverages. Other distribution channels are specialty stores, franchisee stores, etc. Purchasing organic foods and beverages is convenient when they are distributed through these channels. The offline stores are able to stock the popular brands that are rapidly growing in the market. The demand for the organic food and beverages market is continuously increasing through offline stores.
The online distribution channel is expected to grow at a CAGR of 14% during the forecast as there is the increased use of Internet services. There is Internet penetration in various regions and the companies are able to target the audience. These factors are responsible for increasing the sales of the organic food and beverages market. In the last two years, there has been an increase in sales and subscription boxes for organic produce. Due to the adoption of heart smartphones and the increasing use of the Internet post-pandemic, there has been a great increase in the purchase of organic foods and beverages through online stores.
Organic Food and Beverages Market Share, By Region, 2022 (%)
|Regions||Revenue Share in 2022 (%)|
In countries like Argentina, Australia, and the US the government is introducing many supportive policies in order to increase organic farming so as to produce more organic foods and beverages. Government policies are having a positive impact on the growth of this industry. Particularly in the US, Australia, and Argentina, the demand for organic food and beverages has also increased in recent years.
The North American market is expected to have good growth during the forecast. The products offered by the North American market are zero-chemical and residue free. They're eco-friendly and extremely healthy compared to conventional food. As there is an increased consumer awareness about the benefits of natural or organic foods which are not genetically modified or engineered these factors will lead to growth in the market.
The Asia Pacific region is also expected to have a good growth rate of 18% in the organic food and beverages field. As the number of working-class people in the Asia Pacific region is increasing, there's a trend for ready-to-eat food among these people. People in countries like China, Japan, and India are spending majorly on the food market. The demand for the frozen food segment is growing in this region. As the working class has less time for food preparation Organic foods and beverages market is growing.
Some of the Prominent Players
Segments Covered in the Report
By Distribution Channel
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