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The organic fruits and vegetables market size is projected to increase by USD 45.03 billion, at a CAGR of 8.74% between 2023 and 2028
The rapid expansion of the market in North America is fueled by increasing consumer awareness of health and environmental sustainability. The market is further driven by the widespread adoption of agricultural practices, stringent certification criteria, and supportive regulations. Consumers, prioritizing fresh, chemical-free, and sustainably sourced products, contribute significantly to the escalating demand. A notable player in this market, A and A Organic Farms, offers a diverse range of seasonal produce, including ginger, tomatoes, kale, broccoli, lemons, passionfruit, shallots, peas, and celery.
The market shows an accelerated CAGR during the forecast period.
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The growth of the organized retail sector is notably driving the market. To generate more sales volumes and revenue, vendors continuously focus on strengthening their distribution networks through organized retailing. Organized retailing has grown with the establishment of several supermarkets, hypermarkets, and specialty stores. Hypermarkets and supermarkets are the two major offline distribution channels. Organized retailing is an integral part of the offline distribution channel, which facilitates the instant availability of a wide variety for consumers and enables them to choose from a diverse range of fruits and vegetables.
Moreover, a rise in the number of organized retailers that offer more shelf space will increase the availability of a wide variety in the global marketplace. Owing to the growth of the organized retail sector, the penetration in a wider customer base is expected to drive significant demand, which in turn is expected to drive the market during the forecast period.
The adoption of sustainable and innovative packaging solutions is an emerging trend shaping the market. Eco-conscious choices are leading to a closer examination of the full product lifecycle, including packaging. Consumers, who frequently prioritize sustainability and less environmental effects, expect the packaging to reflect these objectives. In response to this demand, the global market is shifting toward more environmentally friendly packaging options. This includes the use of biodegradable materials, compostable packaging, and less plastic consumption.
Furthermore, governments and industry associations are actively campaigning for environmentally friendly packaging strategies, emphasizing the significance of this trend. As the market evolves, the use of sustainable packaging solutions remains an important trend, demonstrating the industry's dedication to satisfying customer expectations while reducing its environmental impact. Therefore, the adoption of sustainable and innovative packaging solutions is expected to drive the market during the forecast period.
The perceived higher cost is a significant challenge hindering the market. While such farming practices emphasize environmental sustainability, soil health, and the avoidance of synthetic pesticides, they frequently result in greater production costs than conventional farming. This results in increased prices. Consumers who are used to conventional fruits and vegetables may find the higher price associated with items a barrier to adoption. Despite the various health and environmental benefits, the more expensive perception can limit market acceptance. This difficulty is worsened by budget-conscious consumers' preference for lower-cost solutions despite the perceived benefits of choices.
Furthermore, considerations such as organic farming's restricted economies of scale, certification costs, and the requirement for manual labor all contribute to the perception of greater costs. Overcoming this challenge will necessitate deliberate marketing and education activities to promote the inherent value, health benefits, and sustainable practices connected with farming, altering consumer views and creating a broader acceptance of the higher cost. This factor is, in turn, expected to hamper the market during the forecast period.
The fresh form segment is expected to increase significantly in terms of revenue in the market during the forecast period. Fresh produce is the preferred option due to consumers' growing interest in health and wellbeing, as well as their desire for less processed foods. Fresh products are preferred due to their natural flavor, nutritional value, and lack of synthetic preservatives. The fresh form segment benefits from the growing availability in supermarkets, specialty stores, and farmer's markets. The emphasis on freshness responds to changing customer tastes, making it an important driver of industry growth. In summary, the market is expected to witness considerable growth in the fresh form segment during the forecast period, driven by health-conscious customers looking for unadulterated, naturally derived products with little environmental effect.
The market share growth by the offline segment will be significant during the forecast period. Consumers are increasingly valuing the real experience and trust associated with purchasing from brick-and-mortar stores, farmers' markets, and specialist retailers. The opportunity to personally inspect the quality and freshness of fruits and vegetables increases consumer confidence.
The offline segment was the largest and was valued at USD 54.90 billion in 2018
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Further, the offline channel makes use of the expanding availability of fruits and vegetables in mainstream grocery shops, supermarkets, and co-ops, making such products more accessible to a broader consumer base. As consumers become more aware of the benefits, the demand for these products grows, giving offline merchants more possibilities to offer a variety of fruits and vegetables. In a market driven by customer preferences for freshness, trust, and sustainability, the offline distribution channel segment is expected to grow significantly, which in turn will drive the market during the forecast period.
North America is estimated to contribute 41% to the growth of the global market during the forecast period
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Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The expansion of farmers' markets, as well as an increase in demand in major grocery shops, has fueled the demand. Furthermore, the expansion of e-commerce enables easy access to organic fruits and vegetables. Crop rotation and reduced chemical use are examples of farming strategies that promote soil health and biodiversity. The emphasis on local and seasonal produce is consistent with customer tastes, promoting regional growth. The North American market shows a shift toward choices, indicating that the regional market will continue to grow 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 forecasting growth and analysis.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including A and A Organic Farms, Bio Diverse Farming Pvt. Ltd., BioNet, BIOSABOR S.A.T., BLUE SKY ORGANIC FARMS, Cambridge Organic Food Co. Ltd., Danone, Earls Organic Produce, General Mills Inc., Green Organic Vegetables Inc., Grimmway Enterprises Inc., Kyssa Farms, morarka organic, Murgiverde S. Coop., Nature Bio Foods Ltd., Paradise Fruits Solutions GmbH and Co. KG, Phalada Agro Research Foundation, Sresta Natural Bioproducts Pvt. Ltd., Suminter India Organics, and Z Natural Foods LLC
The market analysis and report of 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.
The research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The market is experiencing robust growth, driven by a confluence of factors. Heightened consumer awareness regarding the nutritional benefits, including elevated levels of iron, Vitamin C, phosphorus, and magnesium in produce, is a primary catalyst. The market dynamics are further shaped by the active participation of small and mid-sized food product manufacturing companies, leveraging online platforms to meet the escalating demand for such options. Government initiatives such as the Paramparagat Krishi Vikas Yojana (PKVY), backed by the Government of India (GOI), and the implementation of the Participatory Guarantee System (PGS) certification, underscore the commitment to promoting and supporting such farming practices. Concerns about food safety, coupled with a growing emphasis on creating a sustainable environment, contribute to the rising popularity of organic choices.
Moreover, the market is witnessing increased traction in mainstream retail channels, including supermarkets and food store chains, reflecting the expanding consumer base. Recognized organizations like the Research Institute of Organic Agriculture FiBL play a crucial role in providing guidance and standards for the global organic movement. Region-specific initiatives, such as the MOVCDNER scheme in the Northeast region, and the active involvement of Farmer Producer Organisations (FPOs) further amplify the positive trends in the market.
Organic Fruits and Vegetables Market Scope |
|
Report Coverage |
Details |
Page number |
148 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.74% |
Market Growth 2024-2028 |
USD 45.03 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.95 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 41% |
Key countries |
US, China, Germany, UK, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
A and A Organic Farms, Bio Diverse Farming Pvt. Ltd., BioNet, BIOSABOR S.A.T., BLUE SKY ORGANIC FARMS, Cambridge Organic Food Co. Ltd., Danone, Earls Organic Produce, General Mills Inc., Green Organic Vegetables Inc., Grimmway Enterprises Inc., Kyssa Farms, morarka organic, Murgiverde S. Coop., Nature Bio Foods Ltd., Paradise Fruits Solutions GmbH and Co. KG, Phalada Agro Research Foundation, Sresta Natural Bioproducts Pvt. Ltd., Suminter India Organics, and Z Natural Foods 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, 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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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