Organic Food Market Forecasts to 2028 – Global Analysis By Product (Dairy Products, Fruit & Vegetables, Processed Foods, Meat & Fish, Spices & Pulses, Cereal & Food Grains, Beverages, Poultry), Form Type (Pureed, Powder, Fresh, Frozen), Distribution Chann

Organic Food Market Forecasts to 2028 – Global Analysis By Product (Dairy Products, Fruit & Vegetables, Processed Foods, Meat & Fish, Spices & Pulses, Cereal & Food Grains, Beverages, Poultry), Form Type (Pureed, Powder, Fresh, Frozen), Distribution Channel (Online Stores, Supermarkets/Hypermarkets, Specialty Stores, Convenience Store, Grocery Stores), and Geography

According to Stratistics MRC, the Global Organic Food Market is accounted for $161.24 billion in 2022 and is expected to reach $369.10 billion by 2028 growing at a CAGR of 14.8% during the forecast period. Natural and organic farming and production methods are used to produce organic food, while synthetic chemicals, food ingredients, hormones, and antibiotics are never used. It comprises cereals, beverages, processed food, pulses and spices, fruits and vegetables, and processed food. Antioxidants, minerals, vitamins C and E, iron, zinc, magnesium, phosphorus, and omega-3 fatty acids are all abundant in organic food products. Organic food items are seen as being fresher, healthier, and more sustainable than conventional food items since they help to conserve the environment and offer a number of health advantages, such as a reduced risk of cancer, eczema, and allergies.

According to the 2019 Organic Survey reports, there has been a 17% increase in the number of certified farms in the U.S. between 2016 and 2019. According to the Department of Agriculture’s National Agricultural Statistics Service, there were more than 14,000 certified organic farms in the US in 2016.

Market Dynamics:

Driver:

Growing Shift towards Organic Farming

In the US, organic farming is becoming increasingly popular. This transition to organic farming is being influenced by growing public knowledge of the devastating effects of chemical fertilisers, pesticides, antibiotics, and some other compounds used in conventional farming. There is a strong possibility that this will enhance the market overall by increasing the accessibility of organic goods in the US market.

Restraint:

Expensive organic crops

When compared to conventional or traditional farming methods, the volume of a product grown organically is always lower. Because there are no pesticides, fertilisers, or even injectables used to promote crop production, organic produce is more expensive. Hence the market growth is constrained during the forecast period.

Opportunity:

Increasing Availability of Organic Foods in Supermarkets

According to a recent survey, 82% of Americans purchase organic foods, with traditional grocery stores accounting for the majority of sales. The availability of a variety of organic food goods below one roof at retail stores, club stores, and supercenters is becoming more and more popular among consumers, even though the younger age is prone to using prominent online grocery stores. As a result, large grocery store chains including Walmart, Target, Costco, Kroger, and Safeway have begun stocking their shelves with organic foods. This has increased consumer access to organic food, which is expected to spur market expansion throughout the course of the projection period.

Threat:

Short shelf life of organic foods

A short storage life is another factor limiting market expansion in addition to the product's high cost. Due to the fact that these pricey organic commodities have a shorter shelf-life than conventionally cultivated foods, the market's expansion is constrained. This factor limit the market expansion.

Covid-19 Impact

The enormous COVID-19 pandemic epidemic slowed the market's expansion for organic foods. Consumers panicked and over purchased goods as a result of the unexpected lockdown, which led to a lack of supplies at supermarkets and convenience stores. The organic food businesses suffered significant losses as a result of the limits on distribution methods. To increase sales and satisfy consumers' growing demands in the midst of the global health crisis, organic food businesses turned to online sales channels. With rising consumer awareness of their health in the post-COVID-19 period, it is projected that the market for organic food will increase significantly.

The Dairy products segment is expected to be the largest during the forecast period

The Dairy products segment is estimated to have a lucrative growth. Fresh milk, yoghurt, buttermilk, cheese (paneer), butter (ghee), ice cream, and other dairy products are all considered dairy goods. Due to rising consumer health concerns and growing awareness of the environmental advantages of eating foods produced organically, the market for organic food is expanding quickly. Consuming dairy products has been related to better gut and bone health, which could be attributed to growing knowledge of these benefits.

The online stores segment is expected to have the highest CAGR during the forecast period

The online stores segment is anticipated to witness the fastest CAGR growth during the forecast period, due to the younger demographics’ preference for convenience of delivery service. To increase market sales, the organic food companies build their own websites as well as turn to well-known shopping portals like Amazon.com. In order to draw customers and support the expansion of the market segments, they also provide fantastic offers and discounts via online platforms along with subscription services.

Region with largest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to general increase in health awareness among the populace, along with shifting dietary habits. As a result of its numerous health advantages, consumers' growing demand for nutrient-rich and organically derived products is acting as a further growth-inducing driver. Additionally, the Government of India (GoI) is funding and putting into place advantageous programmes to support organic farming in the nation, which is helping the market expand. Additionally, the development of smart farms and the use of artificial intelligence (AI) to precisely manage the flavour, texture, and nutritional value of organic food is accelerating the market's expansion. The industry is expected to develop as a result of a number of other factors, such as the ease with which products can be found on various e-commerce platforms and consumers' rising purchasing power.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period, owing to customers growing awareness of their own health. Growing awareness of the negative effects traditional farming has on the environment as a result of the extensive use of chemical fertilisers, pesticides, and other materials is another factor propelling the market ahead. Due to factors including rising consumer health consciousness and growing environmental concern as a result of conventional farming's extensive use of pesticides, chemical fertilisers, and other chemicals, the market for organic food is rapidly expanding.

Key players in the market

Some of the key players profiled in the Organic Food Market include Morarka Organic Foods Pvt. Ltd, Nature Pearls Pvt. Ltd, Amy's Kitchen Inc., Nestle S.A., Organic India, Arla Foods Inc., Everest, Conscious Food Private Limited, Newman’s Own, Inc., General Mills Inc., Amul, Cargill Inc., Organic Valley, Danone S.A., Nourish Organics Foods Pvt Ltd and Sresta Natural Bioproducts Pvt. Ltd.

Key Developments:

In October 2021, Organic India, a multinational genuine organic products company, announced the expansion of its product portfolio by entering the staples segment with grocery items including organic Basmati rice, Dalia, pulses, etc.

Products Covered:
• Dairy Products
• Fruit & Vegetables
• Processed Foods
• Meat & Fish
• Spices & Pulses
• Cereal & Food Grains
• Beverages
• Poultry
• Others Products

Form Types Covered:
• Pureed
• Powder
• Fresh
• Frozen
• Other Form Types

Distribution Channels Covered:
• Online Stores
• Supermarkets/Hypermarkets
• Specialty Stores
• Convenience Store
• Grocery Stores
• Other Distribution Channels

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements