Organic Foods Market Size, Share, Industry Trends and Forecast, 2032

This market's growth is fueled by rising health consciousness, supportive government initiatives promoting organic agriculture, and consistent innovation within the packaged food sector. Other contributing factors include increasing disposable income, improved standards of living, and rapid urbanization. The COVID-19 pandemic further amplified interest in organic foods, as consumers prioritized health and nutrition, accelerating demand.

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Market Segmentation

Fruits & Vegetables Dominate Owing to Nutritional Superiority

The market is categorized into fruits & vegetables, dairy, meat, fish & poultry, frozen & processed foods, cereals & grains, beverages, and others. Among these, fruits and vegetables are expected to lead, given their dense nutritional composition rich in vitamins, minerals, fiber, and antioxidants.

Unprocessed Organic Items Expected to Hold a Larger Share

In terms of product type, the market is segmented into processed and unprocessed goods. The unprocessed segment is likely to lead, driven by increasing consumer preference for fresh, natural, and minimally processed food options.

Supermarkets and Hypermarkets to Maintain Lead in Distribution

Key distribution channels include supermarkets/hypermarkets, specialty retailers, convenience stores, e-commerce platforms, and others. Supermarkets and hypermarkets are set to remain dominant due to their extensive selection of organic products available in one place.

Report Coverage

This report offers comprehensive insights into vital market segments, key trends, growth opportunities, and challenges. It analyzes the impact of the COVID-19 pandemic and evaluates regional dynamics alongside strategic moves by leading market players.

Key Growth Drivers and Challenges

Eco-Friendly Agricultural Practices Driving Market Expansion

The transition toward sustainable farming and growing awareness about the adverse effects of chemical fertilizers and pesticides are major growth drivers for the organic food sector. Increased emphasis on sustainable agriculture is helping to enhance both accessibility and affordability of organic options. Continuous innovation by industry leaders also supports growth. However, premium pricing and limited shelf life may hinder broader consumer adoption.

Regional Insights

Europe to Continue Leading the Global Market

Europe is expected to remain the largest regional market due to heightened environmental awareness and ethical consumerism. For instance, data from AgenceBio in 2020 showed that fresh produce accounted for 17% of organic food consumption in France, second only to grocery items at 31%.

North America is also poised for notable growth, led by rising health awareness and broader availability of organic products in the U.S., Canada, and Mexico. According to the Organic Trade Association (OTA), organic baby food sales in the U.S. rose by 11% in 2021, while the organic beverages segment increased by 8%.

Competitive Landscape

Innovation and Product Launches Driving Industry Growth

Top market players are expanding their portfolios through product launches and branding efforts across both mature and emerging markets. New entrants are also boosting market development through innovative offerings. For example, in May 2022, Amul launched a range of organic products including organic basmati rice, pulses (moong dal, tur dal, chana dal), and wheat flour.

Prominent Companies Profiled

• General Mills Inc. (U.S.)

• Danone S.A. (France)

• Dole plc. (Ireland)

• Organic Valley (U.S.)

• Organic India Pvt. Ltd. (India)

• Amy's Kitchen, Inc. (U.S.)

• Arla Foods Amba (Denmark)

• Eden Foods Inc. (U.S.)

• Hain Celestial Group, Inc. (U.S.)

• SunOpta Inc. (U.S.)

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Recent Industry Developments

• May 2022: Barry Callebaut, a leading Belgian-Swiss chocolate and cocoa manufacturer, expanded its plant-based product line with a new dairy-free organic chocolate range, specifically designed for the North American market.