The global organic food and beverages market size is expected to reach USD 564.22 billion by 2030, according to a new report by Grand View Research.
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The market is projected to expand at a CAGR of 13% from 2022 to 2030. The various health benefits associated with the intake of organic food & beverages and rising health consciousness amongst consumers have encouraged the growth of the global organic food & beverages market.
Asia Pacific is expected to grow at fastest pace during the forecast period. The growth is mainly driven by factors such as increasing affluence, consumers' awareness about health, advancement in biological farming techniques, and establishment of several international retail stores in developing economies including India and China.
The coffee & tea segment of organic beverages is poised to grow significantly during the forecast period and is expected to remain the fastest-growing market. Factors, such as preference for organic and natural drinks, increasing health awareness and changing lifestyles, are boosting the segment growth.
During the forecast period, the offline distribution channel segment is expected to retain a larger market share owing to increasing number of organic food restaurants and cafes.
The term "organic" refers to the way agricultural products are cultivated, and its regulations vary from country to country. For instance, in the U.S. organic crops must be grown without the use of synthetic pesticides, herbicides, fertilizers, or genetically modified genes (GMOs). Growing adoption of organic and natural products is linked to their eco-friendly characteristics. These crops are enriched with nutrients such as vitamins, minerals, antioxidants, and free of any additives or preservatives that might cause allergic reactions in some people.
Organic fruits and vegetables of organic food dominated the market, contributing 39.9% market share in 2021. The segment is projected to maintain its leading position during the forecast period. Moreover, increasing consumption of meat and poultry products is likely to grow at the fastest pace. Rising concerns regarding artificial additives and preservatives is anticipated to enhance the growth of the segment.
Non-dairy organic beverages are prepared using sources such as plant sources such as legumes, nuts, and cereals. The segment accounted for a significant share of 33.7% in 2021 as they are used as a milk substitute. Furthermore, initiatives undertaken by various government around the world to raise awareness about non-GMO and organic products and growing vegan culture is boosting the demand for non-dairy organic beverages. ■