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Organic Food Global Market Report 2021: COVID-19 Growth And Change To 2030

Organic Food Global Market Report 2021: COVID-19 Growth And Change To 2030

  • September 2021
  • 175 pages
  • ID: 6151556
  • Format: PDF
  • The Business Research Company

Summary

Table of Contents

Major players in the organic food market are General Mills Inc., Cargill, Inc., Danone, United Natural Foods Inc. and Amy’s Kitchen.

The global organic food market is expected to grow from $201.77 billion in 2020 to $221.37 billion in 2021 at a compound annual growth rate (CAGR) of 9.7%. The growth is mainly due to the companies resuming their operations and adapting to the new normal while recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $380.84 billion in 2025 at a CAGR of 14.5%.

The organic food market consists of sales of organic food and beverages and related services.The production of organic food involves practices that promote ecological balance and aim to conserve biodiversity.

These food products do not use any food additive or industrial solvent.

The organic food market covered in this report is segmented by product type into organic meat, poultry & dairy, organic fruits & vegetables, organic bread & bakery, organic beverages, organic processed food, other organic products. It is also segmented by application into conventional retailers, natural sales channels, others and by distribution channel into supermarkets/hypermarkets, convenience store, specialty stores, online stores.

The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

Low shelf life of organic food and beverages compared to conventional foods and beverage products is restraining the organic food market.For instance, in a research conducted by MSNBC, it was reported that the shelf life of organic food product tends to be shorter than conventional produce.

Similarly, some researchers found that many organic foods had higher levels of bacteria than conventional products that cause food to spoil.As organic food is not exposed to the similar amount of preservatives that of conventional food, organic food tends to be prone to bacteria attacks and has a shorter shelf life.

For example, organic food products like turnip greens, mustard greens, and endive have a very short shelf life with shrinkage percentage of 50%. Thus, high packaging, logistics and distribution costs to increase shelf life is limiting the growth of the organic food market.

The organic food market is regulated by authorities such as the US Food and Drug Administration (FDA) and the European Food Safety Authority (EFSA) to ensure high quality standard of food product is maintained.For instance, EFSA oversees whether labelling is used to mislead consumer on the nutritive proportions of a product in the EU.

EFSA performs occasional checks on the nutritional value to check whether correct labelling has been used or not. In order to maintain transparency and effectiveness, regulatory authorities have come up with strict food labelling regulations for the organic food market.

Increasing health concerns due to growing number of chemical poisoning cases globally is acting as a driver in the organic food market.Consumers are becoming more health conscious owing to the harmful effects caused by the presence of chemical pesticides in food products.

The toxicity of chemical pesticides in food products can cause cancer, hormone disruption and birth defects.According to an UN report, around 200,000 people die every year due to toxic effects of pesticides in food products.

This is causing consumers to shift their focus towards organic food products.

Companies in the organic food market are focusing on introduction of new product categories and varieties.Organic food manufacturers are coming up with new and innovative organic food products in the form of ready-to-eat snacks, cookies, organic tea, pulses, spices, edible flowers, frozen waffles, medical plants, herbs and organic juices.

For example, Lidl, an organic grocery chain is coming up with 28 new and innovative organic food products to choose from. Similarly, Nestle plans to launch new and innovative organic milk products in India.

The countries covered in the market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

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