Press release
Organic Foods Market Poised for Remarkable Growth, set to Reach USD 529.64 billion by 2032 with a CAGR of 12.99%.
Organic Foods Market
The organic food market in the United States is expected to experience substantial growth, reaching USD 185.47 billion by 2032. This rise is driven by growing health awareness and the increased availability of organic products in the country.
Organic foods include food and beverage products such as fruits, vegetables, dairy, and grains cultivated according to organic farming standards. The market's expansion is fueled by rising health consciousness among consumers and supportive government initiatives to promote organic farming. With the increasing global preference for organic foods, numerous companies are introducing innovative packaged organic products to strengthen their market position. Factors such as rising income levels, better living standards, and rapid urbanization also contribute to market growth. The COVID-19 pandemic significantly accelerated consumer interest in health and nutrition, spurring demand for organic products.
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Key Companies in the Global Organic Foods Market:
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.)
Market Segmentation
Fruits & Vegetables Segment to Dominate Due to Nutritional Benefits
By 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 lead due to their high content of vitamins, minerals, fiber, and antioxidants.
Unprocessed Organic Foods to Lead Due to Freshness and Convenience
Based on product type, the market is bifurcated into processed and unprocessed foods. Unprocessed organic products are projected to dominate due to their fresh-like appeal and ease of consumption.
Supermarkets/Hypermarkets to Remain Leading Distribution Channel
The distribution channels include supermarkets/hypermarkets, specialty stores, convenience stores, online retail, and others. Supermarkets/hypermarkets are set to hold the largest share because they offer diverse brands and product varieties under one roof.
Report Highlights
The report presents in-depth insights into the key market segments, emerging trends, and regional dynamics. It also examines the impact of COVID-19 and provides an overview of strategic developments by leading players in the industry.
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Market Drivers and Challenges
Advancing Organic Farming Practices to Fuel Growth
The adoption of organic farming methods and the global shift away from harmful chemical-based agriculture are key drivers. These practices support environmental sustainability and improve accessibility and affordability of organic products. Moreover, frequent product launches by industry players are expected to propel the market.
However, challenges such as premium pricing and shorter shelf life of organic products may hinder growth to some extent.
Regional Analysis
Europe to Lead Due to Environmental and Ethical Concerns
Europe is projected to maintain its leadership due to rising awareness of environmental sustainability and animal welfare. For example, AgenceBio reported that in France (2020), fruits & vegetables accounted for 17% of organic food consumption, second only to groceries (31%).
North America to Witness Strong Growth Driven by Health Awareness
North America is another key region, driven by rising health consciousness in countries such as the U.S., Canada, and Mexico. According to the Organic Trade Association (OTA), organic baby food sales in the U.S. grew by 11% in 2021, followed by organic beverages at 8%.
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Competitive Landscape
Innovation and Product Expansion to Shape Market Trajectory
Leading companies are enhancing their portfolios through new product development and brand loyalty strategies. The entry of new players with innovative offerings further contributes to market expansion.
In May 2022, Amul introduced a new line of organic food products including organic wheat flour, moong dal, tur dal, chana dal, and basmati rice.
Key Industry Development
May 2022 - Barry Callebaut expanded its plant-based range by launching dairy-free organic chocolate for the North American market. Barry Callebaut is a renowned Belgian-Swiss cocoa and chocolate manufacturer.
Read Related News:
Essential Oils Market: https://www.fortunebusinessinsights.com/industry-reports/essential-oils-market-101063
Baby Food Market: https://www.fortunebusinessinsights.com/baby-food-market-103849
Vegan Food Market: https://www.fortunebusinessinsights.com/vegan-food-market-106421
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