The global organic foods market was valued at USD 177.08 billion in 2023 and is projected to grow from USD 199.35 billion in 2024 to USD 529.64 billion by 2032, reflecting a CAGR of 12.99% over the forecast period. Europe emerged as the leading region in 2023, accounting for 44.17% of the overall market. Meanwhile, the U.S. organic foods market is poised for notable growth, expected to reach approximately USD 185.47 billion by 2032, driven by a health-conscious consumer base and an increasing number of organic product launches.
Organic foods include a wide range of food and beverage items—such as fruits, vegetables, dairy, and grains—produced in compliance with organic farming regulations. Market growth is being spurred by heightened health awareness among consumers and government initiatives promoting organic agriculture. Companies are introducing innovative products in the packaged food sector to strengthen their foothold as global demand surges. Factors such as rising disposable incomes, improving living standards, and urbanization are further contributing to this upward trend. The COVID-19 pandemic notably amplified demand for organic foods, as consumers became more focused on health and nutrition during the crisis, serving as a major catalyst for growth.
Information Source: https://www.fortunebusinessinsights.com/industry-reports/organic-foods-market-101470
Market Segmentation
Fruits & Vegetables Segment to Lead Owing to High Nutritional Content
Based on category, the market is segmented into fruits & vegetables, dairy, meat, fish, & poultry, frozen & processed foods, cereals & grains, beverages, and others. The fruits & vegetables segment is expected to dominate due to its high content of essential nutrients, including vitamins, minerals, fiber, and antioxidants.
Unprocessed Organic Foods Expected to Hold a Major Share
By product type, the market is classified into processed and unprocessed foods. Unprocessed organic products are anticipated to lead the market, driven by their fresh-like appearance and the growing consumer preference for natural and convenient options.
Supermarkets/Hypermarkets to Dominate Distribution Channel
In terms of distribution channels, the market is divided into supermarkets/hypermarkets, specialty stores, convenience stores, online retail stores, and others. Supermarkets and hypermarkets are likely to remain the preferred distribution channels, offering consumers a wide selection of brands and products under one roof.
Report Scope
This report delivers a detailed analysis of key market segments and prevailing trends. It explores major drivers and restraints influencing growth and assesses the impact of COVID-19 on the industry. Additionally, it covers regional developments and strategic initiatives undertaken by leading market players.
Market Drivers and Challenges
Evolving Agricultural Practices to Accelerate Market Expansion
The ongoing adoption of advanced agricultural methods, coupled with growing concerns about the environmental effects of chemical fertilizers and pesticides, is expected to support organic market growth. Increasing awareness about sustainable farming practices has made organic products more accessible and affordable worldwide. Furthermore, frequent product innovations by key players are projected to further drive the market. However, the high cost and limited shelf life of organic foods could pose challenges to broader market expansion.
Regional Overview
Europe to Maintain Dominance on the Back of Rising Environmental and Animal Welfare Awareness
Europe is set to lead the global organic foods market, supported by growing environmental consciousness and heightened awareness of animal welfare. According to AgenceBio, France’s Agency for the Development and Promotion of Organic Agriculture, fresh fruits and vegetables accounted for 17% of home-consumed organic products in France in 2020, following groceries at 31%.
North America is also anticipated to experience significant growth, fueled by increased health consciousness and organic food adoption across the U.S., Canada, and Mexico. According to the Organic Trade Association (OTA), the U.S. witnessed an 11% increase in organic baby food sales and an 8% growth in the organic beverage segment in 2021.
Competitive Landscape
Innovation and New Product Launches to Drive Market Growth
Key industry players are focusing on portfolio expansion through new product launches and brand innovation across both mature and emerging markets. The introduction of novel products by new entrants is also contributing to market dynamism. For example, in May 2022, Amul unveiled a range of organic products, including organic whole wheat flour, moong dal, tur dal, chana dal, and basmati rice.
Key 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.)
Tariff Impact Analysis for Organic Foods Market: https://www.fortunebusinessinsights.com/enquiry/request-sample-us-tariff/organic-foods-market-101470
Industry Development:
- May 2022: Barry Callebaut, a leading Belgian-Swiss cocoa and chocolate manufacturer, expanded its plant-based range by launching a dairy-free organic chocolate line for the North American market.
