The global organic food and beverages market is growing due to increased awareness regarding healthy eating habits along with increasing obesity worldwide. Organic food is grown without the use of any chemicals, pesticides, hormones, or genetically modified organisms. It is also free from artificial food additives such as preservatives, artificial flavours, sweeteners, and colours. Most common organic products available in the market include fruits, vegetables, grains, meat, and dairy products. Organic food has higher levels of nutrition, antioxidants, zinc, iron, and vitamin C among others. Market players are also launching organic breakfast cereals, sodas, and cookies to meet the growing customer needs. On account of the antiquated methods used, organic food takes longer to produce and requires more care. Organic food is priced higher owing to specific methods used to grow in longer time. However, growing concerns of health among consumers is expected to supplement the growth of organic products. According to the Organic Trade Association’s (OTA’s) 2017 Organic Industry Survey, the sale of organic products generated around $47 billion in 2016 in U.S. as compared to $43 billion generated in 2015.
The growing geriatric population along with increasing cases of age-related health conditions are expected to drive the market. There has been an increased awareness among consumers regarding health benefits, wellbeing, weight loss, and nutritional needs, which supplements the growth of this market. Increasing concerns regarding obesity related diseases such as diabetes has further fostered the adoption of these products. Additionally, increasing disposable income coupled with busy lifestyles of consumers encourage consumers to eat healthy. There has been an increased demand of premium, low-calorie organic products and health beverages in emerging economies of Asia-Pacific. Global players are expanding their business in this region to increase their customer base and improve the geographical outreach.
However, high cost of organic food and beverages, and stringent government regulations to be followed by manufacturers of organic food and beverages are some of the factors hampering the global market.
The global Organic food and beverages market is segmented on the basis of product type, production, distribution channel, and geography.
By Product Type
By Distribution Channel
Geographically, the global organic food and beverages market is categorized into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
On the basis of geography, North America is expected to dominate the global market over forecast period. North America exhibits the highest obese population. Owing to the increased per-capita consumption of fast food over the years, the obesity has increased significantly among children as well as old people. In the recent years, there has been an increased awareness regarding weight loss and benefits of eating healthy, which has resulted in an increased demand for organic food and beverages. The increasing obese population, initiatives and funding by governments, and lifestyle changes primarily drive the growth of this market in North America. The number of memberships for health clubs and gyms has increased significantly promoting the growth of organic food in the region. The increase in obesity related diseases such as diabetes and hypertension along with high disposable income of consumers further propel the adoption of organic food and beverages.