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Organic Foods Market Analysis
The global organic foods market will touch USD 535.0 billion at a 12.90% CAGR by 2032, as per the recent Market Research Future report.
COVID-19 Analysis
The organic food business has been significantly impacted by the COVID-19. Due to the unpredictability, consumer purchasing habits have altered as people’s awareness of the value of a healthy immune system has increased, leading to a desire for organic & natural foods. Additionally, there is a paradigm transformation in the organic food sector as a result of the pandemic in 2020, with customers starting to purchase more organic goods as a preventative health strategy. This mentality change is anticipated to support the organic food industry’s growth in the years to come. In actuality, the worldwide organic food business has grown, especially in fruit and vegetables. Additionally, there are certain significant businesses that have seen a surge in need for organic foods. For instance, General Mills Inc., a US-based consumer products firm, reported an 8% increase in net sales overall. All of these factors should increase consumer demand for organic food.
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Key Players
Eminent market players profiled in the global organic foods market report include Newman’s Own, Inc., Whole Foods Market IP. L.P., Frito-Lay, Dole Food Co., Inc., The Kroger Co., Inc., Clif Bar & Company, Organic Valley, and Dean Foods.
Drivers
Increasing Health Awareness to Boost Market Growth
Because organic food is produced without the use of chemicals, it limits the use of preservatives, chemical pesticides, and fertilizers and is grown with the use of natural resources. They are therefore regarded as nutritious food. These elements will accelerate the market expansion for organic food. More people are also embracing organic food for its many advantages, which is anticipated to be the main factor propelling the worldwide organic food market during the projected decade. Additionally, as a result of their changing lifestyles, customers are increasingly worried about their health and choose organic food to other sweets. Additionally, it is anticipated that increased income levels among the populace and better distribution systems would be two of the key drivers boosting the worldwide organic food market throughout the projected time.
Opportunities
Focus on Better Labeling and Packaging to offer Robust Opportunities
Businesses in organic food sector are putting more effort into labeling and packaging. A multimillion dollar business has developed around organic food, and it now accounts for a bigger portion of the global food market. Organic foods are in demand as customers grow more health aware. The food packaging label must be eco-friendly as well if these items are to be really appealing to consumers who prefer organic products. Sustainability, clear labeling, and simple designs are now prioritized when it comes to labeling and packaging. Businesses aim to add purity information and a tamper-evident seal on the packaging of organic goods to reassure customers that the food is devoid of pesticides, herbicides, & other antibiotics.
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Restraints and Challenges
High Production Cost to act as Market Restraint
The high production and operation cost coupled with shorter shelf life may act as market restraints over the forecast period.
Market Segmentation
The global organic foods market is bifurcated based on product and distribution channel.
By product, fruits and vegetables will lead the market over the forecast period. Initially gaining traction in industrialized places like North America, the appeal of organic vegetables has subsequently expanded to emerging countries like China and India. North America and Europe are the two continents which eat the most organic food. Rising apprehensions regarding man-made preservatives and additives are predicted to hasten the growth in product demand during the next years.
By distribution channel, offline will domineer the market over the forecast period. These stores provide a broad selection of both foreign and local items. The offline retail industry includes actual stores including hypermarkets/supermarkets, franchisee shops, specialty shops, and club shops, to name a few. The convenience it provides and the ability of the distribution channel to deliver well-known brands have supported the growth of this sector. The growth of supermarket & hypermarket chains & changes to the retail landscape, particularly in developing nations, are driving higher sales of organic foods and drinks through this channel.
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Regional Analysis
North America to Head Organic Foods Market
In 2022, this market was headed by the North American Organic Foods Market (45.80%). This is owing to the products’ unique advantages, which include being healthier than traditional food, eco-friendly, and devoid of chemicals and residues. The North American market is expected to be driven in the near future by growing public awareness of the benefits of consuming the non-genetically altered or modified goods. Additionally, in the North American area, the U.S. organic food market had the biggest market share, while the Canada market had the quickest rate of expansion.
Discover more research Reports on Food, Beverages & Nutrition Industry, by Market Research Future:
Organic Chocolate Market Research Report Information By Type (Dark, White, Milk, and Others), By Distribution Channel (Store-Based and Non-Store Based), And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) – Market Forecast Till 2030
Organic Food and Beverage Market Research Report Information by Type (Bakery & Confectionery, Dairy & Frozen Desserts, & Others) Packaging Material (Glass, Plastic, Metal, & Paper) Distribution Channel (Store & Non-Store), & Region – Forecast till 2030
NOTE: Our Team of Researchers are Studying Covid19 and its Impact on Various Industry Verticals and wherever required we will be considering Covid19 Footprints for Better Analysis of Market and Industries. Cordially get in Touch for More Details.
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