Organic Foods Market Size, Share, Analysis, Trends, Growth, 2032

Organic Foods Industry Prospective:

The global organic foods market size was worth around USD 175.43 billion in 2023 and is predicted to grow to around USD 512.08 billion by 2032 with a compound annual growth rate (CAGR) of roughly 12.64% between 2024 and 2032.

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Organic Foods Market: Overview

Organic food, either processed or fresh, is produced using the practices involved in organic farming. Food thus produced does not contain any form of harmful synthetic chemicals including fertilizers and pesticides. They also do not contain genetically modified organisms (GMOs). Organic foods consist of items such as meats, fresh produce, and dairy items. They also contain processed items such as drinks, crackers, and frozen meals. The demand for organic food has revived in the last few years driven by growing consumer awareness and a higher number of organic food providers. As more companies get added to the industry for organic foods, the prices of items become automatically stable thus allowing a greater number of buyers to opt for organic consumables. One of the major drawbacks in the industry is the varying standard of organic farming but the basic criteria revolve around concepts such as promotion of ecological balance, cycling resources, and conserving biodiversity. Another key aspect of the organic foods sector is that a particular food variety can be commercially sold as an organic food only after receiving necessary government-regulated labels from official authorities such as the European Commission and the US Department of Agriculture (USDA). The demand for organic foods is projected to witness a steady rise during the projection period. However, the availability of more popular non-organic alternatives may impact the market expansion rate.

Key Insights:

• As per the analysis shared by our research analyst, the global organic foods market is estimated to grow annually at a CAGR of around 12.64% over the forecast period (2024-2032)
• In terms of revenue, the global organic foods market size was valued at around USD 175.43 billion in 2023 and is projected to reach USD 512.08 billion, by 2032.
• The mining chemicals market is projected to grow at a significant rate due to the growing knowledge of the health impact of synthetically made fertilizers and pesticides
• Based on the product type, the unprocessed segment is growing at a high rate and will continue to dominate the global market as per industry projection
• Based on the distribution channel, the supermarkets & hypermarkets segment is anticipated to command the largest market share
• Based on region, Europe is projected to dominate the global market during the forecast period

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Organic Foods Market: Growth Drivers

Growing knowledge on the health impact of synthetically made fertilizers and pesticides may drive demand for organic edibles

The global organic foods market is projected to grow due to the growing awareness and knowledge about the serious health impact of chemical fertilizers and pesticides on the health of living organisms and the environment. Fertilizers or pesticides made with synthetic chemicals may contain harmful elements especially if they are used in quantities beyond recommended. For instance, chemical fertilizers are known to improve crop yield. However, excess use directly impacts the soil condition as it is known to decrease overall land fertility and cause soil hardening. Additional environmental impacts of chemical pesticides or fertilizers include a contribution to air and water pollution along with the emission of greenhouse gasses. These chemicals are not only hazardous to human health but also degrade the overall ecological quality. The presence of heavy metals such as lead, mercury, uranium, and cadmium have been reported globally. Exposure to these toxic chemicals can cause serious health issues such as disturbances in the liver, lungs, and kidneys. They are also associated with certain types of cancer. A growing number of people are becoming aware of the long-term impact of consuming chemical-infused food products. These segments are switching to organic counterparts that are grown without the aid of chemical fertilizers and hence are safer to consume.

Increasing trend of investment in kitchen gardens may fuel the adoption of organic foods

Kitchen gardens are defined as an area or a garden meant for cultivating vegetables, fruits, and other items for domestic consumption. These products are not sold commercially and are solely meant for personal consumption and contribute to the revenue in the global organic foods market. As per official statistics, more than 85% of UK homes have a personal garden. In 2020, the global kitchen garden market was valued at over USD 100 billion and has been growing since then at a steady pace.

Organic Foods Market: Restraints

Intense competition from non-organic food alternatives will restrict the market expansion rate

The global organic foods industry will be limited in growth due to the intense competition it faces from the higher market value of non-organic food alternatives. While the use of synthetic chemical-free fertilizers and pesticides is on the rise, the food production market is currently dominated by man-made chemical alternatives with the majority of food producers using synthetic chemical fertilizers or pesticides. The number of organic food suppliers is low as compared to non-organic food suppliers. Moreover, since the market for latter alternatives is more mature, consumer awareness is higher leading to greater demand for non-organic food products.

Organic Foods Market: Opportunities

Surging launch of new organic food & beverages to open doors for extensive growth

The global organic foods market is projected to generate extensive growth opportunities during the projection period led by the rising sale of novel product offerings across segments such as processed food and meat items. As per market research, between 2009 and 2019, the world witnessed an increase of 4% in the total number of organic food suppliers, and the number of organic food options for regular buyers has never been as high as it is at present times. In February 2024, Diversified Communications, an event organizing firm backing the Nordin Organic Food Fair, announced the launch of yet another event in the form of The Good Food Fair. The event hosted food and beverage companies that rely on sustainable solutions and use ethically sourced raw goods thus helping Diversified Communications to reach an even broader group of companies working toward future-oriented growth. In May 2024, Verde Farms, a leading provider of 100% pasture-raised, grass-fed beef, launched burger patties which are 80/20 organic and available in 4 packs.

Rise in the number of online food sellers delivers excellent expansion opportunities for the market players

The emergence and subsequent rise of the food e-commerce industry, especially focusing on delivering cooked meals or grocery items to customer's doorsteps has opened new growth avenues for the global organic foods market players. These companies strive to achieve excellent customer satisfaction by offering subscription-based services. The providers of organic foods can leverage the remote presence of food and grocery delivery applications to reach an extended group of audience.

Organic Foods Market: Challenges

Complex legalities associated with obtaining organic food labels may challenge the market expansion rate

The global organic foods industry will be challenged by the existence of an extremely complex and dynamic framework around obtaining organic food labels. These regulations change from one region to another and the process of certification is time-consuming due to the lack of universally applicable guidelines.

Organic Foods Market: Segmentation

The global organic foods market is segmented based on product type, category, distribution channel, and region.

Based on the product type, the global market segments are unprocessed and processed. In 2023, the highest growth was observed in the unprocessed segment driven by attributes such as convenience and absolute freshness that processed organic foods lack. The rising understanding of the long-term impact of consuming processed items is causing a shift of consumer preference toward unprocessed items that are generally free of additional additives used for enhancing the shelf life of processed items. Organic produce can last around 5 days if maintained well.

Based on category, the global organic foods industry is divided into meat, fish, & poultry, fruits & vegetables, dairy, frozen & processed foods, and others.

Based on the distribution channel, the global market divisions are convenience stores, supermarkets & hypermarkets, online retail channels, specialty stores, and others. The largest market share was held by supermarkets & hypermarkets in 2023 since these facilities are home to a large number of brands and companies selling organic foods. Customers have a higher option range. The growth in investments in the construction of new supermarkets globally will drive segmental demand in the future. In 2023, the US had more than 62000 supermarkets across the region.

Organic Foods Market: Report Scope

Organic Foods Market: Regional Analysis

Europe will witness a massive growth rate during the projection period

The global organic foods market will be led by Europe during the projection period. In 2023, the region had registered the highest revenue mainly backed by the growing welfare concerns over animal welfare and environmental conditions. The demand for freshly produced organic fruits and vegetables was the highest throughout Europe as more consumers are becoming health conscious and choosing organic produce against synthetic chemical-produced food items. Moreover, the kitchen garden trend in Europe is widely prevalent. The growth in the number of food service facilities specializing in organic food is a testament to the popularity of organic foods in the region. In 2022, the European Economic and Social Committee (EESC) hosted the first-ever EU organic awards thus encouraging the contributors to the regional market revenue. In October 2021, Arla Foods, the largest dairy company in the US, announced its intention to achieve over 50% growth through the regional organic retail and foodservice business by 2026 thus projecting to increase its dairy business growth from 180 to 270 million liters. North America to be led by the US and Canada regions. The contribution of the food e-commerce segment in the regional market growth trend will remain significantly critical.

Organic Foods Market: Competitive Analysis

The global organic foods market is led by players like:

• Earthbound Farm
• Whole Foods Market
• Pacific Foods
• Stonyfield Farm
• Hain Celestial Group
• Organic Valley
• Nature's Path
• Cascadian Farm
• Annie's Homegrown
• Simply Organic
• Trader Joe's
• Clif Bar & Company
• WhiteWave Foods (now part of Danone)
• Eden Foods
• Amy's Kitchen.

The global organic foods market is segmented as follows:

By Product Type

• Unprocessed
• Processed

By Category

• Meat
• Fish, & Poultry
• Fruits & Vegetables
• Dairy, Frozen & Processed Foods

By Distribution Channel

• Convenience Stores
• Supermarkets & Hypermarkets
• Online Retail Channels
• Specialty Stores

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa