Organic Foods Market Size, Share, Growth, and Industry Analysis, By Type (Fruits & Vegetables, Meat, Fish & Poultry, Dairy Products, Frozen & Processed Food), By Application (Food Retailers, Supermarkets, Online Sales), and Regional Forecast to 2033

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ORGANIC FOODS MARKET OVERVIEW

The global organic foods market is anticipated to witness consistent growth, starting at USD 317.32 billion in 2024, reaching USD 362.5 billion in 2025, and climbing to USD 1051.77 billion by 2033, with a steady CAGR of 14.24% from 2025 to 2033.

The Organic Foods Market is one of the many growing sectors of the global food industries and is growing due to increased consumer concerns for safety, health, wellness and sustainability. The organic market includes agricultural or processed foods that have not been grown or processed with synthetic fertilizers, pesticides and GMO (genetically modified organisms). With consumers increasingly looking for clean label/chemicals free food, and both small and large businesses expanding the number of organic food choices, the organic market is benefiting from consumer legitimacy largely due to government initiatives educating consumers about organic interest, certifying products and developing retail and infrastructure for international organic production and processing. Overall, considering these social/cultural changes concerning organic food, the food system is increasing its presence on a global level with a general trend towards (less yards).

ORGANIC FOODS MARKET KEY FINDINGS

• Market Size And Growth – The worldwide organic food sector was valued about USD 317.32 billion in 2024; expected to be at USD 1051.77 billion by 2033, this has a CAGR of 14.24%.

• Key Market Drivers- According to the USDA (United States Department of Agriculture), there were over 19,400 certified organic farms in the United States as of 2022; this can help ensure the supply as well as access to organic foods for consumers.

• Major Market Restraint- Although the USDA Economic Research Service (ERS) has shown an average price premium between 7.5% to 60% for organic products compared with conventional products is a cost barrier.

• Emerging Trends- In 2023, the OTA (Organic Trade Association) reported that organic produce sales made up 15% of total U.S. fruit and vegetable sales. Organic produce is now a common preference when choosing fruit and vegetables.

• Regional Leadership- Europe held more than 38% of global organic agricultural land according to FiBL & IFOAM in 2022.  The top purchasers were Germany and France.

• Competetive Landscape- The top-five organic food companies in the U.S. included General Mills and Danone, and these five companies account for more than 35% of total certified organic product sales.

• Market Segmentation- OTA also shows that organic fruits and vegetables made up 40% of total organic food sales in the United States, with dairy and beverages accounting for 23% and 12%, respectively, in 2023.*.

• Recent Development- In 2023 the USDA pledged an additional USD 300 million additional investment, as part of their Organic Transition Initiative, to provide additional support for new and transitioning farmers to organic.

GLOBAL CRISES IMPACTING ORGANIC FOODS MARKET

COVID-19 IMPACT

Organic Foods Industry Had a positive Effect Due to o health, immunity, and logistics upgrades during COVID-19 Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The COVID‑19 pandemic has considerably accelerated Organic Foods Market, and typically, factor into its growth and sustainability. Consumer priorities are increasing in terms of health, immunity, and food safety - this is where organic food offers the least done or best of what is attainable, consisting of products that have no synthetic additives or pesticides - and found some of the traditional foods that are healthier than more than one of them and price. Online retail was a lifeline for the retailers with overview online and e-commerce channels seeing a strong uptick, and organic brands introducing and gaining customers on lock down. In some markets and organic demand outstripped supply, which led organic producers to upgrade. The pressures to upgrade producers logistics, supply chain, production, and infrastructure resulting from demand. There remain challenges in the organic space post pandemic, however, the organic sector is in a much stronger and more mainstream situated in terms of being post pandemic than pre pandemic, in terms of logistics and production, in terms of consumer trust, and upgrade that has future benefits for the market space.

LATEST TREND

Organic Foods Market Growth Driven by Plant-Based Protein and Sustainability Trends

The Organic Foods Industry continually undergoes change with new trends changing consumer habits and business practices. One trend that is attracting consumers are organic plant-based proteins as they enter a new eating phase that demands sustainable and health-first practices. Specifically, consumers are seeking out organic plant-based substitutes for: (1) meat, (2) milk, and (3) protein-dense snacks; and have just stated a 27% increase in plant-based protein sales in 2022, with additional increases to follow! Additionally, consumers are attracted by trends around sustainable, compostable packaging; functional foods (with probiotics or adaptogens); or new technologies where brands will provide increasing transparency (through blockchain traceability, AI-farming applications, etc.). The plant-based protein trend deserves more discussion, as well as, exciting innovation in the organic lines, and growing the interest of established brands and start-ups with shared sustainable and clean-label goals. The increasing visitors to the protein part of the category suggest consumers will see a deeper and wider range of organic proteins that are nutrient dense, grab & go, and on-shelf.

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ORGANIC FOODS MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Fruits & Vegetables, Meat, Fish & Poultry, Dairy Products, Frozen & Processed Food

• Fruits & Vegetables: As it stands the fruits and vegetables category leads the Organic Foods Market, with robust consumer demand for fresh, local and pesticide free fruits and vegetables. Growth in health awareness and concerns about chemical residue has driven new demand for fresh fruits and vegetables. Organic fruits and vegetables continue to face increased availability by retail grocery chains and eCommerce sites, but the owners of the supply chains are following customers into that space. Since fruits and vegetables are seasonal, they demand heavy reliance on the performance of the supply chain.

• Meat: Organic meat is the next most popular segment of consumer demand in the Organic Foods Market. Organic meat is appealing to consumers who are looking to consumed non-GMO and humanely raised animal protein. This segment focuses not only on the absence of chemicals but also on the way animals are treated. While premium pricing and limited availability have slowed the market from rapidly expanding, there is a growing appreciation of animal welfare within socially conscious consumerism and clean eating that is driving interest in organic meat products.

• Fish & Poultry: The consumer market for organic fish, sourced from wild caught and organic poultry, is extended yet emerging slowly, as consumers are looking for responsibly bred, chemical-free protein. Organic fish and poultry suppliers are considered better for consumers, and provide better environmental outcomes. Establishing respect and trust in these exporters, is very much about trust in certifications like, traceability and who they deal with. To expect organic fish and poultry to grow, the supply chain issues and costs often associated with poultry need to decrease, or be eliminated, whilst globally, more sustainably sourced options need to increase.

• Dairy: Health-conscious consumers are increasingly purchasing organic dairy products, specifically milk, yogurt and cheese. The organic dairy products market is expanding primarily due to perceived better overall nutrition and the absence of artificial ingredients. Lactose free organic dairy products and organic dairy foods with probiotics are examples of innovations contributing to the growth of this category. Adding to this, there is an increase in product growth opportunities associated with sustainable and animal welfare considerations for organic dairy products.

• Frozen & Processed Food: As busy working consumers continue to want quality meal options that are healthy and easy to prepare, the organic frozen and processed food category is expanding significantly. Organic frozen and processed foods include frozen meals, ready-to-eat snacks and frozen fruits and vegetables with clean-label ingredients. Freezing technology has also greatly improved, allowing frozen foods to taste fresh without the use of artificial preservatives, and for consumers to enjoy higher food quality. The growth is occurring in all manner of IIe-commerce, shopping with apps and online grocery shopping to receive home delivered food. Overall modern grocery retailing has been helping grow the frozen and processed foods category.

By Application

Based on application, the global market can be categorized into Food Retailers, Supermarkets, Online Sales

• Food Retailers: Food retailers play an essential role in connecting urban and semi-urban customers with organic food. Retailers offer an ever-expanding range of organic products, from fresh fruit and vegetables to packaged products and drink. Some local and specialty retailers build trust with customers through traceability and certification. People are now buying organic from food retailers due to the record number (53%) of consumers who say they are considering purchasing clean-label or sustainability products.

• Supermarkets: Supermarkets are major contributors to organic food sales given their vast supply chain reaching consumers; supermarkets generally have significant shelf space allocated to organic brands. Consumers' convenience is optimized when there are both organic and conventional options available under the same roof. Many supermarkets have arranged some of their stores to have a separate 'organic' section similar to their deli or bakery features. Many supermarkets tend to assist their organic suppliers through promotional campaigns, private-label organic lines, and loyalty programs.

• Online Sales: Since COVID-19, there has been a significant rise in organic food sales online as safety and convenience emerged as priorities. E-commerce also offers consumers access to an incredible number of organic products, including niche and specialty products that may not typically be available in-store. Subscription and direct-to-consumer avenues continue to grow in popularity. New marketing strategies enabled by digital marketing and easier ways of tracking products are also helping consumers build trust and confidence in organic food products sold online.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.                          

Driving Factor

Organic Foods Market Growth Fueled by Health Awareness and Clean Eating

A main factor driving the Organic Foods Market growth is the growing recognition by consumers about health, wellness and disease prevention.  Consumers are becoming more aware of the risks associated with using synthetic pesticides and chemicals in food and the use of GMOs in conventional food, and the resulting demand for organic products.  Consumers perceive organic foods safer and more nutritious than conventional ones.  There is a stronger trend with urban consumers, younger consumers and those consumers who value clean eating and natural ingredients.

Government Incentives and Certification Systems Fuel Organic Foods Market Growth

Moreover, government programs and certification systems can influence the Organic Foods Market. Various countries are utilizing different subsidies, tax credits and promotional programs in order to increase organic farming and organic consumption.  Clear labeling and certification with programs like USDA Organic and India Organic further build consumers’ confidence in products by providing specificity.  This not only protects the consumer but also has the added benefit of providing incentives for farmers and producers to shift to organic farming and production.

Restraining Factor

High Costs and Pricing Challenges Restrict Organic Foods Market Growth Potential

A fundamental limiting factor of the Organic Foods Market is the performance of organic products in comparison to conventional products. The high costs of organic farming (lower yield, more labor, and certification) translate into higher price tags. With consumers who are price sensitive particularly in developing countries, organic foods become out of reach for many of them. Even as the awareness and demand grows, market penetration is still limited.

Emerging Markets Drive Organic Foods Market Growth Through Rising Local Demand

Opportunity

An important growth potential within the Organic Foods Market is development of organic items in its emerging markets. Countries with emerging economies, such as India, China and Brazil, are undergoing urbanization, experiencing increases in income and rising awareness and concern regarding health, which is raising a new demand for organic production. Investing in locally sourced supplies for new lower range organic products allows companies to capitalize on developing these markets. At the same time, developments in retail infrastructure and access to e-commerce are making organic foods available and reaching more consumers in these emerging markets. We expect this untapped potential in as emerging markets, will contribute to overall growth of the global immense potential growth market, in the next few years.

Certification Complexity and Costs Hinder Organic Foods Market Growth Progress

Challenge

A key barrier within the Organic Foods Marketplace is the complexity and costs of compliance and certification. Farmers' and producers' issues could include unclear expectations, rigid regulations, a lengthy approval process, continuous monitoring and inspection process. This undoubtedly poses many difficulties for small and medium producers, many of them temporarily exiting or growing their enterprise within the organic market sector. The combination of these barriers will continue to leave gaps in supply, continued atmospheric prices for like foods, and block the market share of organic foods in food markets.

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ORGANIC FOODS MARKET REGIONAL INSIGHTS

• North America

North America Leads Organic Foods Market Growth Due to Strong Demand

The Organic Foods Market is largely dominated by North America due to consumer awareness, availability and retail capability, and a solid Certification system. In addition, North America has organic products easily available in major supermarkets, specialty stores, or online. The United States Organic Foods Market is growing, which aims to expand production due to large scale adoption of organic farming, innovation, and demand from health conscience new and existing consumers. That expansion has typically been within organic packaged foods and beverages. In addition, demand in North America from consumers should allow the region to continue being a significant player in the global Organic Foods Market, and due to domestic market demand (from wholesalers to the retail environment) and skilled producers would restrain large scale exports from occurring.

• Europe

Europe Fuels Organic Foods Market Growth with Sustainability and Strong Regulation

Europe is a major contributor to the Organic Foods Market share, driven by effective regulations, consumer base that craves sustainable and environmental-friendly products and the sheer availability of certified organic products across Europe. The strict food safety and environmental protection policies in Europe contribute to the promotion of organic farming and organic production, including packaging. Germany, France, and the UK are the leading contributors with the availability of an assortment of large retail chains and specialty shops offering a variety of organic options. The rising issues of climate change and animal welfare also contribute to the continued growth of the organic market in Europe.

• Asia

Asia Drives Organic Foods Market Growth Through Rising Health-Conscious Consumers

Asia is driving the Organic Foods Market as it has a rapidly growing consumer base that is now more health-conscious, wellness-oriented, and food safety-minded than ever before. India, China, and Japan are only adding to the growing demand for organic fruits and vegetables, dairy and other packaged organic food with urbanization and increasing disposable income. Government initiatives and certification programs are also pushing more farmers in Asia to engage in organic farming practices. Further, modern retail and e-commerce channels are also bringing access to organic foods to a much larger consumer base in Asia.

KEY INDUSTRY PLAYERS

Industry Innovation and Investment Fuel Organic Foods Market Growth Globally

Members of the food industry are revolutionizing the Organic Foods Market from the top down through innovation, engagement, and expansive focus on the globe. Companies like Danone; General Mills; Hain Celestial; Amy's Kitchen; among others, are investing extensively in product development, to help them stay ahead of consumer food preferences, which are focused on clean-label; plant-based; and functional organic foods. These companies are investing in consumer engagement; supply chain traceability; sustainable farming; green packaging alternatives; and engaging directly with the brand consumer, to help engage the consumer even more. These companies are also investing in developing markets and monetizing and reaching new audiences through e-commerce. They are helping to drive growth, affordability, and expectations around the world.

List Of Top Organic Foods Companies

• Nature's Path Foods (Canada)
• Dole Food Company, Inc. (U.S.)
• Arla Foods, Inc. (Denmark)
• Louis Dreyfus Holding BV (Netherlands)
• Dean Foods (U.S.)

KEY INDUSTRY DEVELOPMENT

April 2024: General Mills launched a brand new organic foods venture to the marketplace with the introduction of Cascadian Farm's Organic Plant-Based Protein Granola available at stores nationally! The Cascadian Farm line will provide certified organic oats, seeds, legumes, and will be marketed as a clean label, protein-rich breakfast option for breakfast eaters interested in healthier foods and sustainable choices. General Mills, as articulated in the product launch announcement, has recognized and responded to organic, plant-based, and sustainable food products - food products shoppers want more of. Further, as mentioned in their product announcement, in addition to organic farming, the granola launch aligns with their interests in reducing carbon emissions in its supply chain.

REPORT COVERAGE       

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

This research report examines the segmentation of the market by using both quantitative and qualitative methods to provide a thorough analysis that also evaluates the influence of strategic and financial perspectives on the market. Additionally, the report's regional assessments consider the dominant supply and demand forces that impact market growth. The competitive landscape is detailed meticulously, including shares of significant market competitors. The report incorporates unconventional research techniques, methodologies and key strategies tailored for the anticipated frame of time. Overall, it offers valuable and comprehensive insights into the market dynamics professionally and understandably.