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The organic food and beverages market is estimated to grow by USD 310.08 billion at a compound annual growth rate (CAGR) of 15.85% between 2022 and 2027. The market is experiencing significant growth due to the rising number of successful new product launches. Consumers are being presented with innovative choices, such as zero-sugar organic milk and a variety of products catering to diverse needs. This trend is expected to drive market expansion in the foreseeable future.
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Consumer awareness about the health benefits is the primary trend in the market growth. Changing lifestyles where the dependency has been growing over the years is expected to remain a favorable factor.
Moreover, the growing awareness among the urban population regarding the health benefits, along with an increasing number of supportive dieticians' recommendations at the global level, is expected to have a positive impact on the market. Thus, consumer awareness about the health benefits of organic food and beverages will drive market growth and trends.
The high cost of organic food and beverage products is a major challenge to the growth of the global market. The retail price is higher than conventional packaged food and beverages. The factors that cause the high cost are limited farming, time-consuming production processes, and the need for high labor input. Significant time and effort are required to produce food and beverages as chemicals, pesticides, artificial fertilizers, and growth hormones are not used. Moreover, the cost of organic baby food products is higher than conventional baby food products. For instance, the cost of baby food products is about 25% more than conventional baby food products.
However, parents may prefer products for a variety of reasons, such as environmental concerns and avoiding pesticide residues in conventional food products. There is a reduced risk of contamination by pesticides in organic baby food products than conventional food products by about 30%. Thus, such factors are expected to hinder the growth of the market in focus growth during the forecast period.
By Product - The market share growth by the fruits and vegetables segment will be significant during the forecast period. The rising concerns about artificial preservatives and additives are expected to drive the growth of the segment over the forecast period.
The organic fruits and vegetables segment was valued at USD 43.87 billion in 2017.
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Foods are becoming more and more popular, originating in developed countries such as North America and Europe and spreading to developing countries such as China and India. Organic fruits and vegetables are most popular in North America and Europe. Nevertheless, the consumption of fruits and vegetables is expected to increase during the forecast period.
North America is estimated to contribute 35% to the growth of the global market during the forecast period.
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Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The growing vegan population in the United States will also contribute to the growth of the regional market during the forecast period, as vegans consume only plant-based products. About 2-6% of US consumers identify themselves as vegetarians. More and more celebrities are supporting veganism in America.
Moreover, the number of startups offering vegan nutrition is rising in the US. The demand for foods and beverages is increasing in the region as consumers perceive them to be healthier than regular organic foods and beverages. This will also contribute to the growth of the market during the forecast period. The number of new players offering products is also expected to increase during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Amys Kitchen Inc.: The company offers organic black bean and cheese burritos.
The market growth analysis report also includes detailed analyses of the competitive landscape of the market and information about 15 market Companies, including:
Qualitative and quantitative analysis of Companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. This market trend and analysis includes data that is qualitatively analyzed to categorize Companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize Companies as dominant, leading, strong, tentative, and weak.
The Organic Food and Beverages Market is experiencing significant growth due to increasing consumer values placed on environmental sustainability and overall health. This market encompasses a wide range of organic products, from food to beverages, and is driven by purchasing behavior influenced by concerns over soil degradation, water pollution, and loss of biodiversity.
Consumers are increasingly seeking out organic ingredients, which are free from synthetic chemicals, antibiotics, and other health risks associated with conventional foods. The demand for legitimate organic products is further fueled by government incentives and regulatory support for sustainable farming practices.
However, the high cost of production, shorter shelf life, and premium pricing of organic products pose challenges for the industry. Innovation in advanced production techniques, such as biological farming and novel products, is helping to address these issues.
The industry landscape is diverse, with a range of distribution channels including supermarkets and hypermarkets, brick-and-mortar stores, online distribution channels, and fast food chains. Consumer accessibility to organic products is also influenced by factors such as internet penetration, target marketing, and online sales through subscription boxes, online groceries, and online food delivery platforms.
Despite these challenges, the organic food and beverages market continues to grow, driven by consumer demand and environmental concerns. The market also faces issues with falsely labeled products and limited options, highlighting the importance of certification standards and production and labeling regulations.
In conclusion, the organic food and beverages market is a dynamic and complex industry, shaped by consumer preferences, environmental impact, and regulatory support. It is characterized by a diverse range of products, production methods, and distribution channels, and is influenced by factors such as health consciousness, niche stores, farmers markets, and mainstream supermarkets.
The market research and growth report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Organic Food And Beverages Market Scope |
|
Market Report Coverage |
Details |
Page number |
178 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 15.85% |
Market growth 2023-2027 |
USD 310.08 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
9.25 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 35% |
Key countries |
US, Canada, Japan, Germany, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
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. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our market growth and forecasting report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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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 Vendor Landscape
12 Vendor Analysis
13 Appendix
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