Organic Fruits and Vegetables Market Size, Share Report, Analysis, Trends, Growth 2032

Industry Prospective:

The global organic fruits and vegetables market size was worth around USD 30,700 million in 2021 and is predicted to grow to around USD 72,102 million by 2030 with a compound annual growth rate (CAGR) of roughly 8.25 % between 2022 and 2030. The report analyzes the global organic fruits and vegetables market drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the organic fruits and vegetables market.

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Organic Fruits and Vegetables Market: Overview

Organic fruits and vegetable items are edible items that are produced by the standards of organic farming. Although these standards may vary depending on the region, organic farming makes use of certain basic traits like conserving biodiversity, promoting ecological balance, and recycling resources.

Organic food products are highly regulated and some of the regulatory authorities or bodies may restrict the use of certain fertilizers or pesticides during the production of organic food products to maintain the integrity of the item and avoid any external contamination due to inorganic or synthetic compounds. Many developed economies like the United States, European nations, Canada, Japan, and others require market players to obtain special licenses to sell their products as organic items.

Food products that grow in kitchen gardens can be technically called organic food products, but selling them labeled under organic food is not allowed and is regulated by food safety governing bodies. With the use of synthetically created chemicals during food production or producing inorganic food items, the agriculture sector was drastically divided into two segments. One that did not involve the use of any external chemicals, called organic products and the other being inorganic products.

Key Insights 

• As per the analysis shared by our research analyst, the global organic fruits and vegetables market is estimated to grow annually at a CAGR of around 8.25% over the forecast period (2022-2030)
• In terms of revenue, the global organic fruits and vegetables market size was valued at around USD 30,700 million in 2021 and is projected to reach USD 72,102 million, by 2030.
• The global organic fruits and vegetables market is projected to grow owing to an increasing number of people that are health conscious along with changing consumer mindset about eating habits.
• Based on form segmentation, fresh was predicted to show maximum market share in the year 2021
• Based on distribution channel segmentation, online was the leading channel n 2021
• On the basis of region, North America was the leading revenue generator in 2021

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Organic Fruits and Vegetables Market: Growth Drivers

Increased health consciousness amongst consumers to propel market demand

The global organic fruits and vegetables market is projected to grow owing to an increasing number of people that are health conscious along with changing consumer mindset about eating habits. Covid-19 and its impact managed to give the global market higher growth momentum as people started investing in developing healthy food habits and choosing healthier food options as compared to edibles that do not make any significant contributions to health development.

Various studies conducted to understand the impact of Covid-19 on food choices amongst the population concluded that the majority of the people showed signs of improved consumption habits with more end-consumers preferring food products that were free from chemicals. Statistics have shown that 50% of the American population is trying to accommodate organic fruits or vegetables in their regular diets. The increasing advertisement by providers of organic food products has added more consumers due to growing awareness and availability of the items.

Organic Fruits and Vegetables Market: Restraints

High cost to restrict market expansion

The global market may witness some losses due to the high cost of organic food products. Since these items are specially produced unlike inorganic food items that undergo mass production, the selling price of organic vegetables or fruits are higher than their counterparts. This makes the products unaffordable for many people, thus restricting the number of consumers. Another factor that influences the high price is the investment of higher labor input when compared to traditional farming.

Organic Fruits and Vegetables Market: Opportunities

Growing awareness about the impact of inorganic farming to provide growth opportunities

Inorganic farming makes use of synthetically created fertilizers and pesticides with nitrogen being the most important ingredient in most chemical fertilizers. Nearly 50% of the nitrogen used during farming escapes into the environment by seeping into the soil. Over time, the land becomes unfertile resulting in large barren areas. This deeply impacts the environment. There is a growing awareness amongst end-consumers about the long-term impact of inorganic farming and the unsustainable growth that accompanies it. This has caused more people to choose organic products over inorganic products forcing the entry of new players in the global organic fruits and vegetables market thus creating more growth opportunities.

Organic Fruits and Vegetables Market: Challenges

Stringent government regulations to challenge the market expansion

One of the major challenges faced by the global market players is the presence of extremely strict rules and regulations toward the labeling of products as organic food, vegetables or fruits. Every region has its own set of standards for the quality of a given edible item as organic or inorganic. Hence it becomes difficult for market players to enter international territories thus restraining the growth in the global market. For instance, in the US region, the US Department of Agriculture is the responsible authority whereas, in European countries, the onus is with the European Commission.

Organic Fruits and Vegetables Market: Segmentation

The global organic fruits and vegetables market is segmented based on form, product type, distribution channel, end-user, and region.

Based on form, the global market is segmented into fresh and frozen. In 2021, the global market was dominated by the fresh segment. People who prefer organic consumables are more likely to spend extra money on purchasing fresh products instead of frozen items owing to the high deliverables associated with organic fresh vegetables or fruits. However, the demand for frozen vegetables may also grow at a high CAGR during the forecast period, due to their pre-processed nature thus reducing the cooking time. Between 2019 and 2022, the Indian market exported more than 1978460.4 million tons of organic items.

Based on distribution channels, the global market is divided into supermarkets, online, retail stores, and others. In 2021, the online channel made more than USD 4000 million in revenue, and the number is projected to cross over USD 9700 million by 2030. Through online sales channels, consumers have access to more options as compared to the ones present in physical stores. There are various discounts that buyers can avail of when making the purchase through online mode.

Recent Developments:

• In February 2022, Amul, an Indian dairy state government co-operative society, announced the unit was investing in designing centers that will aid the production of materials required in organic and natural farming
• In May 2022, Amul launched a new range of organic wheat with a future plan to launch organic pulses

Organic Fruits and Vegetables Market Report Scope:

Organic Fruits and Vegetables Market: Regional Analysis

North America to deliver the highest revenue

The global organic fruits and vegetables market is projected to be dominated by North America during the forecast period as it has been in the last few years. The regional growth can be attributed to high product penetration in North American countries like the US and Canada along with higher per capita spending capacity and disposable income.

The large-scale availability of the products further drives more consumers along with the increasing health consciousness amongst the population. As per a recent report, Danone North America has pledged to invest more than USD 22 million over the course of the next 7 years in a bid to encourage healthy eating and living habits amongst the American population. The company will invest another USD 15 million to partner with sellers to educate consumers about healthy eating habits. Such positive initiatives from the government and regional businesses will help the expansion of the regional market.

Organic Fruits and Vegetables Market: Competitive Analysis

Players that lead the global organic fruits and vegetables market include:

• CSC Brands LP (Campbell Soup Company)
• Whitewave Foods Company
• Activz
• DMH Ingredients
• Juices International Pty. Ltd.
• H.J. Heinz Company
• Iceland Foods Ltd.

The global organic fruits and vegetables market is segmented as follows:

By Form

• Fresh
• Frozen

By Product Type

• Organic Vegetable
• Organic Fruit

By Distribution Channel

• Supermarkets
• Online
• Retail Stores
• Others

By End-User

• Commercial
• Personal

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