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Key Influencer in the Ethical Food Market 2025: Environmental Imperative Driving The Surge In Demand For Ethical Food Driver

03-06-2025 10:43 AM CET | Food & Beverage

Press release from: The Business Research Company

Ethical Food Market

Ethical Food Market

What combination of drivers is leading to accelerated growth in the ethical food market?
Concerns about the environment are on the rise, leading to an expected increase in the demand for ethical food products. Recent climate shifts and environmental problems, including carbon emissions, global warming, plastic pollution, and food waste, are compelling companies to focus on creating sustainable goods. Growing environmental anxieties are causing both companies and consumers to lean toward ethical, sustainable-certified products. For instance, the France-based International Energy Agency recorded a rise in global energy-related CO2 emissions by 1.1% in March 2023. This is equivalent to an additional 410 million tonnes (Mt), taking the total to a record-breaking 37.4 billion tonnes (Gt) in that same year. Consequently, the increasing environmental impact of food production and the growing demand for sustainable food is motivating companies to concentrate on sustainable manufacturing processes. This shift is likely to further stimulate demand for ethical food products in the upcoming period.

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What is the projected compound annual growth rate (CAGR) of the ethical food market from 2025 to 2034, and what factors influence it?
In recent times, the ethical food market has experienced robust growth. The market size is projected to increase from $136.28 billion in 2024 to $147.71 billion in 2025, registering a compound annual growth rate (CAGR) of 8.4%. The significant growth during the historical period can be credited to the rise in environmental awareness, escalating demand for fairtrade items, and substantial economic expansion in burgeoning markets.

Expectations are high for substantial expansion in the ethical food market in the coming years. The market is projected to swell to $195.08 billion by 2029, demonstrating a compound annual growth rate (CAGR) of 7.2%. The growth anticipated over this forecast period is tied to government schemes, an inflating demand for eco-friendly food packaging, and ramps up in investments. Predicted trends for the forecast period encompass an emphasis on environmentally-friendly packaging to curtail plastic usage, a focus on mergers and acquisitions, the drive to cut down on greenhouse gas emissions, and the utilization of artificial intelligence to manage water levels and enhance transparency within supply chains.

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How are the latest trends influencing the growth of the ethical food market?
Eco-friendly packaging has emerged as a prevailing trend among conscious food producers and manufacturers. Those involved in the manufacture of organic food are intensifying their efforts towards sustainable packaging to limit plastic use and promote environmental consciousness. For example, Alter Eco implements environmentally-friendly packaging for its products and the plastic utilized for external boxes can be recycled. In response to this trend, the packaging industry is now offering sustainable packaging solutions for organic food and other items. For instance, Giro Pack created compostable welded and net-clipped bags made from plant-derived or organic substances such as eucalyptus pulp or corn starch. Therefore, the ethical food firms' emphasis on sustainable or green packaging has become a significant trend that's set to significantly impact the ethical food market in the upcoming years.

What are the major segments of the ethical food market and their role in driving growth?
The ethical food market covered in this report is segmented -

1) By Type: Organic And Natural, Fairtrade, Free Range Animal Welfare Friendly And Environmentally Responsible, Sustainably Produced
2) By Process: Processed, Unprocessed
3) By Mode Of Distribution: Online, Offline

Subsegments:
1) By Organic and Natural: Certified Organic Produce, Organic Grains and Cereals, Organic Dairy Products, Natural Snacks and Beverages
2) By Fairtrade: Fairtrade Certified Coffee, Fairtrade Certified Tea, Fairtrade Certified Chocolate, Fairtrade Certified Fruits and Vegetables
3) By Free Range, Animal Welfare Friendly, and Environmentally Responsible: Free-Range Poultry Products, Grass-Fed Beef and Lamb, Cage-Free Eggs, Animal Welfare Approved Dairy Products
4) By Sustainably Produced: Sustainably Sourced Seafood, Locally Sourced Produce, Regenerative Agriculture Products, Products with Low Carbon Footprint

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Which regions are key players in the growth of the ethical food market?
Asia-Pacific was the largest region in the ethical food market in 2024. Western Europe was the second-largest region in the global ethical food market. The regions covered in the ethical food market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

Who are the key firms paving the way for growth in the ethical food market?
Major companies operating in the ethical food market include Nestlé S.A., PepsiCo, The Kraft Heinz Company, General Mills, Inc., Danone S.A, United Natural Foods, Inc, Arla Foods, The Hain Celestial Group, Organic Valley, Vyas Bio Life Sciences Private Limited, Krungthep Trading Co., Ltd, Bw Binyuy Holdings (Pty) Ltd, Solitude Global Impex, Nutra Healthcare, Curemax Pharma, STDM Food & Beverages Private Limited, Titan Biotech Ltd, Wuxi Biologics, FOODCHEM, Sun Green Group, Alfa Laval, Shandong Yuxin Soybean Protein Co, Hipp Gmbh & Co Vertrieb KG, Alnatura Produktions- Und Handels Gmbh, Rewe Markt Gmbh, Aldi Einkauf Gmbh & Co Ohg, Royal Forest Company, Grass LLC, Individual Entrepreneur (Ie) Maslov D.V, Nuttys LLC, Foodimport LLC, Siberian Ecological Products LLC, Chechenskiye Mineralniye Vody LLC, Barinoff Drinks, Austria Juice, Laurul SA, Amy's Kitchen, Whole Foods, Impossible Food, Gardein, Ripple Foods, Smartsweets, Fody Food, Sustainable Produce Urban Delivery, Mother Raw, Lufa Farms, Suja Life, Keurig Dr Pepper, Organic Soda Pops, Uncle Matt's Organic Inc, GURU, Bimbo Group, Illy, Ingredion, Mars Incorporated, Starbucks, RCL Foods Ltd, Astral Foods, Kauai, Ooka, NWK, Natural Herbs And Spices, Daiya Foods Inc, Earth's Own Food Company Inc, Panos Brands Llc, Eden Foods Inc, Freedom Foods Group Ltd, Blue Diamond Growers Inc, Sunopta Inc, Archer Daniels Midland Company

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What Is Covered In The Ethical Food Global Market Report?

• Market Size Forecast: Examine the ethical food market size across key regions, countries, product categories, and applications.
• Segmentation Insights: Identify and classify subsegments within the ethical food market for a structured understanding.
• Key Players Overview: Analyze major players in the ethical food market, including their market value, share, and competitive positioning.
• Growth Trends Exploration: Assess individual growth patterns and future opportunities in the ethical food market.
• Segment Contributions: Evaluate how different segments drive overall growth in the ethical food market.
• Growth Factors: Highlight key drivers and opportunities influencing the expansion of the ethical food market.
• Industry Challenges: Identify potential risks and obstacles affecting the ethical food market.
• Competitive Landscape: Review strategic developments in the ethical food market, including expansions, agreements, and new product launches.

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