Organic Food and Beverages Market Size to Cross $600Bn Globally by 2030 - Exclusive Report by The Insight Partners

The global organic food and beverages market to register a CAGR of 11.6% between 2022 and 2030.

Pune, India, Nov. 10, 2023 (GLOBE NEWSWIRE) -- According to our latest study on “Organic Food and Beverages Market Size Report, Forecast to 2030 – COVID-19 Impact and Global Analysis – by Type, Distribution Channel, and Geography,” the organic food and beverages market is expected to grow from $260 billion in 2022 to $600 billion by 2030; it is estimated to grow at a CAGR of 11.6% from 2022 to 2030. The report highlights key factors influencing the market and prominent players along with their developments in the market.

Organic food and beverages are grown without any chemicals, hormones, pesticides, or genetically modified organisms. These products are free from artificial food additives such as sweeteners, colors, and artificial flavors. The demand for organic food and beverages has surged owing to consumers' growing consciousness of health and wellness. Consumers are more inclined towards adopting these products owing to their perceived health benefits, such as reduced exposure to pesticides and chemicals. In addition, increasing consumer preference for clean-label products is further contributing to the market growth.

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Consumers across the world are leaning toward the adoption of a healthier lifestyle. The increased awareness among consumers regarding well-being, health benefits, nutritional needs, and weight loss has surged the demand for organic food and beverages. The increasing concerns regarding obesity-related diseases such as diabetes have further contributed to the adoption of healthy products. In addition, increasing disposable income along with busy lifestyles encouraged consumers to eat healthily. These factors are contributing to market growth.

Key manufacturers are adopting strategic initiatives such as product development, mergers and acquisitions, collaborations, and partnerships to cater to the growing demand for organic food and beverages. For instance, in March 2022, Kayco Beyond announced the launch of Wonder Lemon, a 100 % organic cold-pressed juice with zero added sugar. The launch aimed to expand the geographical reach and growing demand for organic beverages. In addition, in 2022, Organic India announced the launch of new varieties of organic tea like Tulsi Detox Kahwa and infusions such as Peppermint Refresh, Moringa Hibiscus, and Simply Chamomile. The launch was aimed to cater to the growing consumer demand for organic beverages and expand its product portfolio. In 2023, GURU Organic Energy Corp. announced the launch of GURU Theanine Fruit Punch in the Canadian Market—the launch aimed to expand its product portfolio and geographical reach.

However, stringent government regulations to be followed by manufacturers and ingredients used in the products may hamper the growth of the organic food and beverages market during the forecast period. The regulations and policies for organic food and beverages have resulted in procedural delays. Such delays may hamper the product's reach to the market. The organic raw material and processing are expensive, resulting in a high price for the final product. Thus, the premium pricing of the products has limited their acceptance by consumers and may hinder market growth.

Nestle SA; Kraft Heinz Co; ConAgra Brand, Inc.; PepsiCo Inc.; General Mills Inc.; The J.M. Smucker Company; Amy's Kitchen, Inc.; Dairy Farmers of America, Inc.; Organic Valley; and Dole Food Company, Inc. are among the prominent players operating in the global organic food and beverages market.

Impact of the COVID-19 Pandemic on Organic Food and Beverages Market

The COVID-19 pandemic affected industries in various countries, influencing their economic conditions. Lockdowns, business shutdowns, and travel bans in leading countries in North America, Europe, Asia Pacific (APAC), South & Central America (SAM), and the Middle East & Africa (MEA) negatively affected the growth of various industries, including the food & beverages industries. The shutdown of manufacturing units disturbed global manufacturing activities, supply chains, delivery schedules, and sales of various essential and non-essential products. In 2020, various companies announced delays in product deliveries and a slump in future sales of their products. In addition, the bans imposed by various governments in Europe, Asia, and North America on international travel forced the companies to put their collaboration and partnership plans on a temporary hold. Additionally, lockdowns and disruption in the supply chain initially caused sourcing ingredients and packaging challenges. All these factors hampered the food & beverages industry in 2020 and early 2021, thereby hindering the growth of various markets related to this industry, including the global organic food and beverages market.

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Industries faced unprecedented challenges due to the COVID-19 outbreak in 2020. The food & beverage industry declined due to the shutdown of manufacturing units and supply chain disruption. The pandemic disturbed the manufacturing processes with restrictions imposed by government authorities in various countries. During the initial phase of the pandemic, almost all countries proposed lockdowns in their respective economies, where people were restricted from going outside their houses. However, the demand for organic food and beverages surged during the pandemic as consumers were inclined towards the consumption of healthy alternatives. The demand for stay-at-home orders and restaurant closures led to a surge in demand for convenient at-home meal options, including various types of organic food and beverages, further attributed to the market growth. Manufacturers' initiatives to increase production by implementing safety measures for workers, coupled with the increasing popularity of online grocery and food shopping services, propelled the growth of the organic food and beverages market during the forecast period. Additionally, surging health-conscious consumers sought out healthier organic food and beverage options, leading to the development of more nutritious varieties.

Based on type, the organic food and beverages market is segmented into thin food and beverages. Food type is further segmented into fruits and vegetables; meat, poultry, and seafood; cereals and grains; dairy products; and others. The beverage type is further segmented into juices and smoothies, tea and coffee, and others. Based on the distribution channel, the market is segmented into supermarkets and hypermarkets, convenience stores, online retail, and others. By geography, the market is broadly segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America. The organic food and beverages market in North America is further segmented into the US, Canada, and Mexico. The European organic food and beverages market is subsegmented into Germany, France, the UK, Italy, Russia, and the Rest of Europe. The Asia Pacific's organic food and beverages market is further segmented into China, India, Japan, Australia, South Korea, and the Rest of Asia Pacific. The market in the MEA is further segmented into South Africa, the UAE, Saudi Arabia, and the Rest of MEA. The organic food and beverages market in South & Central America is further segmented into Brazil, Argentina, and the Rest of South & Central America.

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