Global Organic Food Market is Expected to US$ 104.7 Billion in 2015

Date: 2015-10-04

Being the largest economy in the world, the U.S. market provides sizeable opportunities for expansion of the organic food industry. Some of the major factors contributing towards the growth of this market are increased concerns of people towards health issues, environmental protection, food safety, animal welfare, and increasing use of natural and organic products. 

Demand for organic food products is expected to grow with time. Government funding and involvement of private limited companies in the organic food market is also expected to fuel the growth of this sector. 

Organic food is produced by farmers who focus on using reusable resources. Foods are grown on small, family-run farms, and in order to conserve the soil and water so as to ensure environmental quality for future generations, the sale of these goods is limited to small grocery stores and farmers markets. Organic food production emphasizes on conservation of water and soil, environment concerns, reusable resources, limiting the use of harmful pesticides and chemicals in food.

The global organic food market is expected to grow from US$ 57.5 billion in 2010 to US$ 104.7 billion in 2015 at an estimated CAGR of 12.9%. Economies like North America is expected to grow at a CAGR of 12% from 2010 to 2015 and Europe has the largest market share with revenue of $28 billion. The Rest of the World (ROW) which includes Latin America, Australasia, and others is expected to grow at the highest CAGR of 16.5 %.

The global organic food market is growing due to increasing concerns for improving overall health, rising consumer awareness about organic food benefits, increased organic farming in the world, increasing number of retailers providing a variety of organic products and implementation of government regulations. But, demand for organic foods is concentrated in countries where consumers have high purchasing power like Japan and South Korea. Moreover, high prices and lack of information on availability of products, undeveloped infrastructure and logistics and dealing with certification in emerging economies are the factors restraining the market from growing.

Developing the organic value chain, success in product innovation, focusing especially on product quality and packaging, increasing earning capacity and concerns for overall health and development in the retail sector is helping the organic market to grow significantly. However, key companies like EARTH’S BEST, AMY’S KITCHEN, GREEN & BLACK’S, 365 EVERYDAY VALUE/WHOLE FOODS and ORGANIC VALLEY have to analyze the changing consumer tastes and eating habits and also the changing global economic situation resulting in diverse consumption patterns and legislative guidelines.


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