Market Trends

Soaring Growth Anticipated in Organic Food and Beverage Market as Veganism and Eco-Consciousness Expand

NEW YORK, March 3, 2024 /PRNewswire/ -- The organic food and beverage industry is on the cusp of unprecedented growth, with projections indicating a surge by USD 310.08 billion from 2022 to 2027. This expansion is expected to unfold at an impressive compound annual growth rate (CAGR) of 15.85%, as revealed by Technavio's latest market study. North America, responsible for a 35% contribution to this global market growth, is witnessing an uptick in vegan populations that only consume plant-based foods. The rise in veganism, supported by celebrity endorsements and a spate of U.S.-based startups specializing in vegan nutrition, is propelling the demand for organics. Consumers' perceptions that such foods and beverages are healthier than conventional products are bolstering sales in the region.

A New Horizon of Market Expansion

During the forecast period, a notable increase in the number of new entrants offering organic food and beverage products is expected. This broadening of the marketplace will provide consumers with a wider array of choices, aligning with the mushrooming interest in organic options. The market's outlook is positive, with enhanced availability and the introduction of innovative offerings being major contributors to its scale-up.

View PDF sample of the report here.

Technavio has announced its latest market research report titled Global Organic Food and Beverages Market 2023-2027.

Market Report Coverage and Insights

The comprehensive report by Technavio spans an insightful 178-page analysis, with 2022 set as the base year. It delves into the historic performance of the market from 2017 to 2021 and casts a forward-looking glance from 2023 to 2027. According to the findings, the market should hit a YoY growth rate of 9.25% between 2022 and 2023.

Characterized as fragmented, the market's expansive structure is encouraging increased competition and innovation. The research evaluates regions such as North America, Europe, APAC, Middle East and Africa, and South America. Notably, the U.S., Canada, Japan, Germany, and France emerge as key contributors to the market's expansion.

An In-depth Look at Market Segmentation

Breaking down the market, the segmentation by type includes organic fruits and vegetables, dairy products, prepared foods, meat, among others. Channels of distribution analyzed are both offline and online, demarcating another sphere where market dynamics are in play. Geographically, the segmentation encompasses North America, Europe, APAC, Middle East and Africa, and South America.

Segment Dynamics and Predicted Growth

Forecasts indicate the organic fruits and vegetables segment will see remarkable growth within the forecast period. The surge is largely due to burgeoning concerns over artificial preservatives and additives, initially in parts of North America and Europe, and progressively in developing nations such as China and India. The edge organic fresh produce has over conventional counterparts, notwithstanding the premium pricing, underscores the demand surge for these healthier alternatives.

View PDF sample for detailed market insights.

Market Propulsion via New Product Introductions

Innovation and new product launches act as vital catalysts for market growth. Grain Forests' introduction of new organic offerings in July 2022 is a case in point—aiming to bridge the farm-to-city divide with products like Moringa powder for nutrition, sprouted ragi for infants, and a health mix for diabetes care. Similarly, Maple Hill Creamery, in 2021, launched the first zero-sugar organic ultra-filtered milk. Such strategies are set to not only enhance brand value but also fuel sector expansion during the forecasted period.

Explore detailed market strategies and trends with Technavio's SUBSCRIPTION platform.

The Competitive Vendor Landscape

Technavio's intense scrutiny of over 15 major industry players, such as Agrowave Organic Vegetable and Fruits, Amy's Kitchen Inc., and General Mills Inc., provides a panoramic view of the strategic market environment. This exploration covers critical vendor inputs (R&D, CAPEX, technology) as well as extensive insights into product offerings.

Users get a dual perspective with both quantitative and qualitative analysis of vendors. This approach is aimed at aiding clients in understanding broader market dynamics. The report classifies vendors on various scales from pure play to diversified, with each receiving a qualitative and quantitative valuation ranging from dominant to weak, to further assist companies in strategic planning.

To inquire about customization and further details, peruse the custom report offerings.

Analyst Perspectives on Market Dynamics

Analysts at Technavio have observed a notable shift in market dynamics due to increased health consciousness and eco-awareness among consumers. This trend is promoting the penetration of organic offerings into various retail avenues, including farmers' markets, mainstream supermarkets, and online platforms. The growth trajectory of organic farming is aligned with efforts to mitigate environmental impacts and health concerns related to conventional farming methods.

The emphasis remains on prioritizing products with organic ingredients as concerns linger over health risks tied to synthetic chemicals. Supportive governmental guidelines, incentives, and regulatory backing are essential to driving organic farming and meeting strict compliance standards.

Yet the market is not without challenges—high production costs inhibit some producers. Nonetheless, stakeholders are urged to consider the evolving market, with attention to aspects such as market concentration, consumer base shifts, and segment specifics. Organic product segments like fruits and vegetables and meats are in the spotlight, especially in light of increasing demand for non-dairy alternatives and other organic beverages.

Evolving Distribution Channels and Marketing Strategies

The ever-changing landscape necessitates organic businesses to adapt to dynamic distribution channels, including online food delivery platforms and subscription boxes. Internet penetration and evolving marketing approaches are essential to harness the increasing demand for organic products—a demand that is often driven by smartphone-savvy consumers.

For an in-depth analysis of distribution channels, check the report's PDF sample.

Related Reports and Market Outlooks

The organic sector’s expansion extends beyond just foods and beverages. The organic food preservatives market, estimated to grow at a CAGR of 4.71% between 2022 and 2027, marks a supporting trajectory, while the functional foods and beverages market is projected to ascend at a CAGR of 7.29% during the same forecast period.

A Comprehensive Table of Contents

To enable structured perusal, the report offers a roadmap through its detailed table of contents:

1. Executive Summary
2. Market Landscape
3. Market Sizing
4. Historic Market Size
5. Five Forces Analysis
6. Market Segmentation by Product Type
7. Market Segmentation by Distribution Channel
8. Customer Landscape
9. Geographic Landscape
10. Drivers, Challenges, and Trends
11. Company Landscape
12. Company Analysis
13. Appendix

About Technavio

Technavio stands at the frontier as a leading global technology research and advisory company. Their accumulated prowess spans over 17,000 reports and encompasses more than 800 technologies across 50 countries. A clientele comprising Fortune 500 companies among businesses of diverse scales relies on Technavio's extensive data intelligence to navigate market opportunities and establish robust market positions.

Contact Technavio Research:

Jesse Maida, Media & Marketing Executive

US: +1 844 364 1100

UK: +44 203 893 3200

Email: [email protected]

Website: www.technavio.com

SOURCE: Technavio

The organic food and beverage industry stands at the brink of a transformative era. Driven by health, environment, and ethical sourcing considerations, the market is ricocheting towards a greener future. With documented insights, Technavio underscores both the trials and prospects facing the industry, painting a comprehensive picture of imminent evolution and success within the organic foodscape.