According to Organic Food Exhibition, 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 additives or industrial solvents.

The organic food market size has grown rapidly in recent years. It will grow from $244.82 billion in 2023 to $279.19 billion in2024 at a compound annual growth rate (CAGR) of 14.0%. The growth in the historic period can be attributed to rising awareness of the benefits of organic products, increasing cases of food poisoning, strong economic growth in emerging markets, influence of digital media marketing and social media and COVlD-19.

The organic food market size is expected to see rapid growth in the next few years. it will grow to $489.75 billion in 2028 at a compound annual growth rate (CAGR) of 15.1%. The growth in the forecast period can be attributed to the growing number of health-conscious consumers, demographic shifts in emerging markets, rising penetration of organized retail and growth in specialist organic food retailers in developed economies. Major trends in the forecast period include focusing on improving labeling and packaging, exploring opportunities to invest in new product launches, leveraging artificial intelligence (ai) for organic farming, developing zero-calorie soft drinks, focusing on expanding product portfolio and focusing on upcycled food.

Protecting Health Rising Chemical Poisoning Concerns Drive Growth In 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 a UN report, around 200,000 people die every year due to the toxic effects of pesticides on food products. This is causing consumers to shift their focus towards organic food products.

Shelf-Life Challenges In The Organic Food Market Balancing Freshness With Distribution Costs

The low shelf life of organic food and beverages compared to conventional foods and beverage products is restraining the organic food market. For instance, in research conducted by MSNBC, it was reported that the shelf life of organic food products 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 same number of preservatives as conventional food it 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 a shrinkage percentage of 50%. Thus, high packaging, logistics, and distribution costs to increase shelf life are limiting the growth of the organic food market.

Innovative Expansion Companies Diversify Offerings With New Product Categories In The Organic Food Market

Companies in the organic food market are focusing on the 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, Lid, 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

Innovative Offerings In The Organic Food Market

Major companies operating in the organic food market are increasing their focus on introducing organic plant-based coatings to gain a competitive edge in the market. Organic plant-based coatings are made from plant substances that shield fruits and vegetables against oxidation, moisture loss, and other environmental problems. For instance, in August 2022, Agro Fresh Solutions inc., a US-based Ag Tech company that creates agricultural technologies, launched VitaFresh Botanicals Life Select organic plant-based coating to prevent food loss and waste while keeping produce fresh for longer and extending the shelf life of fresh fruits and vegetables, The new coating reduces dehydration, maintains weight, and locks in freshness throughout the supply chain. Following Regulation (EU) 2018/848 on organic production, the new formulation has gained CAAE organic certification. It is also supplied in reusable containers.

North America was the largest region in the organic food market in 2023. Western Europe was the second largest region in the global organic food market.

The organic food market consists of sales of crackers, processed drinks, and frozen meals. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers, or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.