Organic Fresh Food Market Analysis North America, Europe, APAC, Middle East and Africa, South America - US, Canada, China, UK, Germany - Size and Forecast 2023-2027

Organic Fresh Food Market Forecast 2023-2027

The organic fresh food market size is forecast to increase by USD 102.74 billion estimated to grow at a CAGR of 15.53% between 2022 and 2027. This market research and growth report also includes an in-depth analysis of drivers, trends, and challenges. Our report examines historic data from 2017 to 2021 besides analyzing the current market scenario. Rising demand for healthy food products among the global population is notably driving the market growth. The escalated utilization of fertilizers and pesticides has led to the development of resistance in many plants, prompting farmers to resort to stronger chemical compositions to enhance the impact of these substances and elevate yields. However, this heightened chemical reliance has been met with mounting global health concerns, driving consumer awareness about consumed ingredients and consequently fueling the adoption of organic foods. Furthermore, the expanding population of health-conscious globally constitutes a pivotal driver for the market. With a growing emphasis on wellness, young individuals are seeking healthier alternatives in their daily diets, consequently increasing the demand for organic fresh food products on a global scale during the forecast period.

Organic Fresh Food Market Size

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Market Dynamics and Customer Landscape

The market encompasses a wide range of unprocessed and minimally processed food items, including fruits and vegetables, dairy products, meat, fish, poultry products, and organic beverages such as tea and coffee. These food items are grown using these farming practices, which exclude the use of chemical fertilizers, synthetic pesticides, and antibiotics or growth hormones. The quality of soil in organic farming is maintained through natural methods, ensuring the presence of essential nutrients and minerals for optimal nutritional value. Consuming such foods is particularly important for pregnant ladies and unborn babies, as it helps minimize the risk of contamination from harmful substances like hydrogenated fat, artificial preservatives, and irradiation. The market has seen a significant increase in demand due to growing concerns about the potential health risks associated with processed food products and the long-term effects of consuming food with low antioxidant content. The vegan culture is also contributing to the growth of the market as more people adopt plant-based diets for ethical and health reasons. Our researchers analyzed the data with 2022 as the base year, along with the key trends and challenges. A holistic analysis of drivers, trends, and challenges will help stakeholders in the value chain refine their marketing strategies to gain a competitive advantage.

Significant Market Trends

Growing marketing activities is an emerging market trend. The market is experiencing significant growth due to increasing consumer demand for convenient access to high-quality, organic products. Subscription services, which deliver this type of produce and other food items directly to consumers' doorsteps, are becoming increasingly popular. This eliminates the need for frequent trips to grocery stores or farmers markets and ensures a consistent supply of fresh, seasonal items. The market offers a range of these products, including fruits, vegetables, meats, dairy, and more. However, challenges such as dead zones, regulatory support, and logistics, including distribution costs and labeling, can impact the market. Unique characteristics of organic food, such as shorter shelf life and premium pricing, also influence consumer behavior.

The market includes various product types, such as soft drinks, infant formulas, confectionaries, turnip greens, mustard greens, endive, frozen and processed foods, cereals and grains, and others. Category and product type analysis are essential for understanding market trends and consumer preferences. Online distribution channels, including subscription boxes and online groceries, are gaining popularity due to increasing internet penetration and target marketing. Brick-and-mortar stores continue to play a role in the market, but their share is decreasing as consumers turn to online sales for convenience and access to a wider range of organic products.

Major Market Challenge 

The high price of organic fresh foods is a significant challenge hindering market growth. The market is characterized by unique characteristics, including the use of biological farming methods and stringent certification processes. Obtaining the certification can incur significant expenses, ranging from USD 600 to USD 1,300 for first-time certification and additional costs for renewal and equipment approval. Small-scale-organic fresh food producers face higher operating expenses compared to non-organic food production. Dead zones and supply trade regulations impact the availability and distribution of the fresh foods, leading to premium pricing.

Logistics and distribution costs are also higher due to the shorter shelf life of unprocessed items. Labeling and certification requirements add to the overall costs. The market includes a variety of product types, such as turnip greens, mustard greens, endive, frozen and processed foods, cereals and grains, and unprocessed fruits and vegetables. Premium pricing applies to soft drinks, confectionaries, infant formulas, and other categories. Producers and handlers of organic fresh foods face challenges in reaching consumers through brick-and-mortar stores and online distribution channels. Internet penetration and target marketing are essential for online sales, including subscription boxes and online groceries. Category and product type analysis are crucial for understanding market trends and consumer preferences.

Customer Landscape

The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

 Customer Landscape

Market Segmentation

This market report extensively covers market segmentation by distribution channel (offline and online), product (fruits, vegetables, and meat), and geography (North America, Europe, APAC, Middle East and Africa, and South America). The market encompasses a range of food type, including fruits and vegetables, fish, and poultry products, and organic beverages such as tea, coffee, and carbonated drinks. Consumers can access these products through various channels, including specialty stores, general stores, the Internet, and express delivery services. The demand is driven by health concerns, including the potential link between organic food and a reduced risk of birth defects and autism. The vegan culture and low-fat diet trends also contribute to the market's growth. These methods prioritize sustainable practices, such as soil health, water resources, and wildlife habitats, in contrast to conventional agricultural practices that can lead to soil degradation, water pollution, and biodiversity loss. The use of non-GMO products and avoidance of synthetic chemicals in organic farming is essential for consumer health and the environment. Government participation in regulating the standards and enforcing cleanups of contaminated water sources is crucial in mitigating health risks associated with pesticide-resistant pests and water contamination. The market faces challenges from human diseases and the emergence of pesticide-resistant pests, necessitating ongoing research and development efforts.

By Distribution Channel 

The market share growth by the offline segment will be significant during the forecast period. Offline distribution of fresh food products, including fruits, vegetables, meat, and other items, plays a major role in the organic fresh food market. Conventional brick-and-mortar retail outlets, farmer's markets, and specialty stores are the major avenues for consumers to access organic fresh food products. 

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The offline segment was the largest and was valued at USD 47.01 billion in 2017 and continued to grow until 2021.  Customers often report that locally sourced organic fresh food products have comparatively better taste and quality than products that have been transported for long distances. The shorter time between harvest and consumption of locally sourced fresh food products is the major reason behind this. Such factors will contribute to the growth of the offline segment, which will promote the growth of the market in focus during the forecast period.

By Product 

The increasing recognition of the health advantages linked with the consumption of organic produce, attributed to its perceived heightened nutritional value and reduced exposure to harmful chemicals, is fostering a surge in demand for fresh fruits and vegetables. Growing apprehensions regarding the ecological repercussions of traditional agricultural methods, including soil deterioration, water contamination, and biodiversity loss, are compelling consumers to explore such alternatives. Moreover, these fresh fruits and vegetables offer a broader array of benefits compared to their regular non-organic counterparts. Consequently, elements such as health consciousness and the promotion of sustainable agricultural practices are set to contribute to the expansion of the fresh fruits and vegetables segment. This, in turn, drives the advancement of the market in focus throughout the forecast period.

The global market, encompassing organic meat, is currently witnessing an upsurge due to consumers' demand for healthier and more ecologically sustainable protein choices. Moreover, the production of organic meat is often perceived as an integral facet of sustainable agriculture, owing to its emphasis on nurturing soil health, minimizing synthetic chemical usage, and fostering biodiversity. These considerations, along with the attributes of elevated nutritional value and reduced fat content compared to non-organic alternatives, are anticipated to contribute to the growth of the fresh meat segment. Consequently, this expansion within the meat segment is set to fuel the overall advancement of the focused market throughout the stipulated forecast period.

Key Regions

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North America is estimated to contribute 36% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market in North America is experiencing significant growth, particularly in the sector of organic fruits, vegetables, fish, poultry products, and beverages, including tea, coffee, and carbonated drinks. This trend is driven by various factors, such as the increasing popularity of vegan culture and low-fat diets, the demand for specialty and niche stores, and the convenience of online shopping and express delivery. Consumers are increasingly aware of health risks associated with synthetic chemicals and conventional agricultural practices, leading to a preference for non-GMO products. The environmental impact of farming methods is also a concern, with issues such as soil degradation, water pollution, and biodiversity loss. Such farming methods, sustainable practices, and the use of organic ingredients are seen as solutions to these issues. Government participation in promoting organic farming and enforcing regulations against water contamination and pesticide-resistant pests is essential in ensuring the market's continued growth.

Key Market Companies Overview

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.

Key Offering- AUGA group AB - The company offers organic fresh food such as Organic-grill-champignons, Organic-chestnut mushrooms, Organic-mushrooms and Organic-Milk products.

Key Offering- Danone SA - The company offers organic-fresh foods such as Organic-milk in variants of whole milk, reduced fat milk and low-fat chocolate milk, Organic-Cheese in variants of mozzarella string and American single cheese, Organic-Butter, Organic Half and Half, and Organic-Whipping Cream through its brand Horizon Organic.

Key Offering- Dole plc - The company offers organic-fresh food such as Chayote, Cherries, Kiwis, Broccoli, Brussels Sprouts, Butter Lettuce, Celery, Green leaf Lettuce, Romaine Hearts, Raddish, Onions and Mushroom.

The market report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Eden Foods Inc.
• Elworld Agro and Organic-Foods Pvt. Ltd.
• Eversfield-Organic
• Gotham Greens Holdings LLC
• Green-Organic Vegetables Inc.
• Lundberg Family Farms
• Newmans Own Inc.
• Organic-and-Quality Foods Pty Ltd
• ORGANIC-India Pvt. Ltd.
• Organic-Valley
• Riverford Organic-Farmers Ltd.
• Sresta Natural Bioproducts Pvt. Ltd.
• Suminter India-Organics Pvt Ltd.
• Taylor Fresh Foods Inc.
• United Natural Foods Inc.
• Farm Fresh-Organics
• The Green Labs LLC

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. Data 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.

Market Analyst Overview

The market refers to the sale of fresh fruits, vegetables, and other organic produce. The market is a significant sector, with a growing number of consumers preferring organic food due to its health benefits and environmental sustainability. The production of these food types involves using natural farming methods and avoiding the use of synthetic fertilizers and pesticides. The market is projected to grow due to increasing consumer awareness about health and wellness. Consumers are becoming more conscious of the food they consume and are willing to pay a premium for organic produce. The market is driven by factors such as the growing preference for natural and organic food, the increasing number of certified organic farms, and the rising demand for locally produced food. In the market, it is also seen that a pregnant lady prefers organic food type over carbonated beverages.

The market for organic dairy products, meat, and beverages is also growing rapidly. The market is expected to continue its growth trajectory in the coming years, driven by increasing consumer demand and government support for these farming methods. The market is a global market, with major producers and consumers located in North America, Europe, and Asia Pacific. The market is highly competitive, with numerous players vying for market share. Key players in the market include large food corporations, small and medium-sized enterprises, and local farmers' markets. In conclusion, the market is a growing sector driven by increasing consumer demand for healthy and sustainable food. The market is projected to continue its growth trajectory in the coming years, with major producers and consumers located in North America, Europe, and Asia Pacific. Organic fruits, vegetables, dairy products, meat, and beverages are in high demand due to their superior taste and nutritional value. The market is highly competitive, with numerous players vying for market share.
 

Segment Overview

The market 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. 

• Distribution Channel Outlook 
  • Offline
  • Online

• Product Outlook 
  • Fruits
  • Vegetables
  • Meat

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • South America
    • Brazil
    • Chile 
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Scope
Report Coverage	Details
Page number	158
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 15.53%
Market growth 2023-2027	USD 102.74 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	15.25
Regional analysis	North America, Europe, APAC, Middle East and Africa, and South America
Performing market contribution	North America at 36%
Key countries	US, Canada, China, UK, and Germany
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	AUGA group AB, Danone SA, Dole plc, Eden Foods Inc., Elworld Agro and OrganicFoods Pvt. Ltd., Eversfield-Organic, Gotham Greens Holdings LLC, GreenOrganic Vegetables Inc., Lundberg Family Farms, Newmans Own Inc., Organic-and Quality Foods Pty Ltd, ORGANIC-India Pvt. Ltd., Organic-Valley, Riverford Organic-Farmers Ltd., Sresta Natural Bioproducts Pvt. Ltd., Suminter India-Organics Pvt Ltd., Taylor Fresh Foods Inc., United Natural Foods Inc., Farm Fresh-Organics, and The Green Labs LLC
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, and Market condition analysis for the forecast period.
Customization purview	If our 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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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2023 and 2027
• Precise estimation of the market forecast and size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Market growth analysis across North America, Europe, APAC, Middle East and Africa, and South America
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Market forecasting of factors that will challenge the growth of the key market companies

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