Launch of various new organic F&B products, expansion in the manufacturing facilities of major organic players, growth in demand for organic baby food products, excessive investment made by manufacturers in R&D for product innovation, expanding sales through internet, aggressive distribution and marketing initiatives, exceptionally performing fruits & vegetables and organic non-vegan product category and increase in the overall volume of organic produce have initiated regional and global growth.
Ease of purchase due to increased availability and accessibility of organic F&B products has facilitated the market. Online portals of companies such as Hipp GmbH, Eden Foods, Nature’s Path Food and spreading distribution networks has resulted in an increase in sales of organic food in retailing stores worldwide in 2016. Major online stores include Vitacost, SunFood, For the Gourmet, Natural Zing, Kalyx, and Manna Harvest amongst various others.
Packed organic food has been mostly sold through organized retailing outlets such as supermarkets and hypermarkets. For instance, Wal-Mart, Supervalu and Safeway are conventional retailers to serve organic-oriented consumers worldwide. Prices of packed organic food products are generally higher than unpacked items owing to higher margins charged by organized manufacturers and supermarket chains.
Proper labeling and organic certification at every step of the value chain has enabled these organized retailers/manufacturers to pocket higher profits in terms of higher margins. This has directly translated into higher prices and reduced market share.
In North America, the key arable crops grown include cereals, green fodder, vegetables, oilseeds and dry pulses. Latin America has accounted for highest arable crop area under sugarcane, cereals, oilseeds, vegetables and dry pulses for 2015. Cereals including barley, cassava, groundnuts, maize, millet, rapeseed or canola, rice, rye, sorghum, soybeans, wheat amongst various others, have taken the highest agricultural land share in terms of area in Americas.
Germany organic food market size has shown exceptional growth in terms of retail sales in the overall global organic food market. Growth has been witnessed in this market owing to factors such as increase in health consciousness of the people and increasing net disposable income of households. Increase in government initiative towards the development of organic sector, changing consumer preferences and large increase in women joining workforce have also contributed significantly.
APAC and Middle East & Africa regions including countries such as India, Japan, Australia, New Zealand, South Africa and UAE, have been projected to move from start-up stage in the review period to growth stage in the forecast period. Growth during the period shall be supported by the increasing production facilities and expanding geographical presence of major manufacturers, intensifying distribution channels, expansion of online organic food and beverage retailing, new product launches government initiative to promote organic product consumption and others.
Many new product launches and brands have been projected to release during the forecast period. For instance, in India, Siri and Sretha organic brand will be launched selling certified organic food products including Horse gram, green gram, black gram and chilli.
Organic food and beverage advertisement would play a major role in the expansion of this market in countries such as China, India, and United States, UAE, United Kingdom and others. Consumption of organic tea, coffee, meat, fish and poultry has been estimated to witness substantial increase during 2017-2022.
Regenerative organic agriculture improves the resources it uses, rather than destroying or depleting them. It is a holistic systems approach to agriculture that encourages continual on farm innovation for environmental, social, economic and spiritual wellbeing. This farming technique enables soil carbon sequestration which is a proven remedy to global warming. It maintains soil nutrition through various crop seasons.
As of 2017, the global urban population has grown to 4.1 billion at an annual growth rate of 2.6%. Rise in the urban population has been more concentrated in less developed countries in regions such as Asia and Africa. Highest concentration has been traced in India, China and Nigeria.
Rise in the urban population directly raises the demand for organic food products in the market. Major end users of organic products have been people who have adequate knowledge about organic products, the ability to pay higher prices and are typically health conscious. Consumer awareness has been highest amongst the educated class living in urban areas hence; urban population has been a major driving factor in this market. Organic F&B have been consumed by the young population; by the age group of 18 and above in majority for 2012-2017.
Key Topics Covered in the Report
Global Organic Food Beverage Market
World Organic Food Industry
Organic Farming Market
Organic Bakery Market
Organic Coffee Market
Organic Tea Market
Americas Organic Food Market
Americas Organic Food Retail Market
Organic Break Market Growth
Americas Organic Food Production Volume
Global Organic Fruits and Vegetables Market
Organic Fruits and Vegetables Market
Organic Dairy Market Trends
Organic Milk Market
USA Organic Food Beverage Market
Canada Organic Food Beverage Market
Australia Organic Food Beverage Market
France Organic Food Beverage Market
Italy Organic Food Beverage Market
United Kingdom Organic Food Beverage Market
Value Chain Organic Food Market
Major Companies Organic Food Industry
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Ankur Gupta, Head Marketing & Communications