Organic Food and Beverages Market is estimated to attain a value of US$187.85 billion by the end of 2019

Evolution of social media in the past decade has played a significant role in raising the awareness regarding the ill-effects of traditional or conventional food, and the benefits of organic food and beverages. Consumers are now willing to pay the premium price for higher quality products and this factor is expected to augment the demand in the global organic food and beverages market. Gaining traction from several other factors, the global organic food and beverages market is projected to increment at a strong CAGR of 15.5% during the forecast period of 2013 to 2019, reaching a valuation of US$187.85 bn by the end of 2019, significantly up from its US$70.70 bn worth in 2012.

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Apart from the change in how organic foods are perceived, consumers are now giving emphasis on social aspects of organic production, supporting small scale agriculture that is done in a clean environment rather than at large farms. Government support for organic way of life has also proved to be an important factor driving the demand in the global organic food and beverages market. Now, additives and food ingredients are strictly studied, regulated, and monitored.

Widening of distribution channels and participation of several players with innovating organic food and beverage products is also expected to favor the prosperity of this market. On the other hand, short shelf life and higher cost in comparison to conventional food continues to hinder the growth rate of the market. Increased investment on research and development of new products, targeting infant and toddlers is expected to open new opportunities for the stakeholders of the global organic food and beverages market.

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Urban Population Preferring Organic Fruits and Vegetables

Based on product, the global organic food market has been segmented into meat, fish, and poultry products, fruits and vegetables, frozen and processed food, and dairy products. Among these, fruits and vegetables segment currently serves the maximum demand and is expected to account for most significant 38.8% share of the demand in 2019. This demand for organic fruits and vegetables is attributed to modern lifestyles that is encouraging consumers to opt for hygienic options as well as get rid of traditional hassles of cleaning and chopping fresh fruits and vegetables.

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