Organic Food Market Size & Forecast

The Organic Food Market is expected to reach $324.1 billion by 2031, at a CAGR of 10.1% from 2024 to 2031. The growth of the organic food market is driven by the growing health-conscious consumer, increasing demand for clean label products, and government and non-government organization support for organic farming. However, the high price of organic products restrain the market’s growth.

Moreover, changes in lifestyle and growing disposable income is expected to generate growth opportunities for the stakeholders in this market. However, stringent regulations is a major challenge in the organic food market.

Organic Food Market Growth Drivers

Growing Health-conscious Consumer

Well-being is becoming a global movement as consumers seek to maintain healthy lives for as long as possible, especially as the average lifespan continues to rise. Over the past decade, industrialization, urbanization, economic development, and globalization have led to rapid changes in diets and lifestyles, significantly impacting health and nutritional status, particularly in developing countries.

The world population is growing rapidly. According to the Population Reference Bureau (PRB), the global population is expected to grow by 75 million, or 1.1%, annually. This growth is projected to reach 9.9 billion by 2050, an approximate 33% increase from 2017. The expanding global population significantly increases the demand for high-nutritional and chemical-free food products. Consequently, the need for non-chemically treated food products to cater to this growing population is expected to boost the demand for organic foods.

Nowadays, consumers are more conscious of their health, understanding that proper nutrition and hydration are vital for the human body. Consuming safe and quality foods is also a preventative measure to avoid future healthcare costs. People who eat a well-balanced diet tend to be healthier, have stronger immune systems, and are at a lower risk of chronic illnesses and infectious diseases. For instance, in 2022, health consciousness drove the demand for organic food in Canada, where 23% of Canadians purchased more organic products than in the previous year.

As consumers increasingly seek safe foods, there is a substantial demand for organic foods that meet specific dietary needs, including gluten-free, clean-label, whole grain, reduced-calorie, and mineral-fortified products. The interest in organic foods is largely due to the absence of chemicals used in their cultivation. Additionally, two in five people now seek organic foods all or most of the time.

Thus, the growing health awareness has increased the demand for organic foods that support better health. The trend towards all-natural and clean-label products within the food and beverage market is expected to further drive the demand for organic food products. Moreover, concerns about the environment and the impact of chemical residues on agricultural land are prompting consumers to move towards organic food products.

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Increasing Demand for Clean Label Products

Clean-label is a consumer-driven initiative shaped primarily by perceptions of ingredient acceptability. Clean-label products contain natural, familiar, and simple ingredients. The rising demand for organic, natural, and "free from" artificial ingredients food products is expected to drive the global demand for plant extracts.

Consumers are becoming more health-conscious, seeking natural and organic products like clean-label items for their perceived health benefits and the desire to avoid synthetic chemicals and additives. The clean-label trend is growing steadily across regions, with consumers paying more attention to ingredient lists, health claims, and product quality. In response, manufacturers are reformulating products to meet clean-label standards and consumer expectations.

Moreover, the global sales of clean-label food ingredients are projected to reach around USD 64.1 billion by 2026, according to Dairy Farmers of America, Inc. (U.S.). Thus, the increasing demand for clean-label products is supporting the growth of the organic food market.

Organic Food Market Opportunities

Changes in Lifestyle and Growing Disposable Income

Nowadays, changing lifestyles and growing disposable incomes have led to increased purchasing power and spending on healthy products. The organic food industry is poised to benefit from these evolving consumer lifestyles and the rise in disposable income. As consumers become more health-conscious, there is heightened awareness and demand for healthier food options, including organic products. Modern lifestyles increasingly emphasize well-being and sustainability, prompting consumers to seek foods free from synthetic chemicals and genetically modified organisms.

Rising disposable incomes also provide opportunities in the organic food market. With more financial resources at their disposal, consumers are more willing to spend on premium products that align with their health goals. This trend is evident not only in developed nations but also in developing countries like India, China, and Brazil, where more consumers can afford organic food products, which tend to be more expensive than conventional foods. For example, according to data from the Indian government, per capita disposable income in India increased by 8% in 2024 and by 13.3% in 2023 over the preceding year.

Therefore, changes in lifestyle and growing disposable incomes are generating growth opportunities for stakeholders in the organic food market.

Organic Food Market Trends

Growing Trend of Organic Fast-food

Nowadays, organic fast food is emerging as a significant trend in the food industry, gaining global popularity due to increased consumer awareness of healthy and convenient food options. This trend is reshaping consumer expectations and driving innovation within the fast-food sector, emphasizing quality, sustainability, and health.

Organic fast foods serve as healthier alternatives to traditional fast-food products. These products use ingredients produced through organic farming practices, which promote ecological balance and biodiversity while minimizing the use of harmful pesticides and fertilizers. Additionally, organic fast-food products are free from genetically modified organisms (GMOs), artificial colors, synthetic pesticides, and artificial preservatives. The adverse effects of conventional pesticides and fertilizers on human health further drive the demand for organic fast foods. The absence of artificial preservatives also ensures the freshness of organic products.

Thus, the ongoing trend towards organic fast foods is positively impacting the global organic food market.

Organic Food Market Analysis: Key Findings

By Type: The Fruits and Vegetables Segment to Dominate the Organic Food Market in 2024

Based on type, the global organic food market is segmented into fruits and vegetables, dairy, grains, beverages, condiments, bakery, snacks, and others. In 2024, the fruits and vegetables segment is expected to account for the largest share of 27.7% of the organic food market. The large market share of this segment is attributed to the rising health and wellness trends and rising demand for organic fruits and vegetables. Additionally, the increase in consumer awareness about healthy diets, changing lifestyles and food habits, and government initiatives promoting organic cultivation of fruits and vegetables are further expected to support the growth of the organic fruits and vegetables market during the forecast period.

By Distribution Channel: The E-commerce Segment is Slated to Register the Highest CAGR During the Forecast Period

Based on distribution channel, the global organic food market is segmented into supermarkets & hypermarkets, convenience stores, specialty stores, e-commerce, and other distribution channels. The e-commerce segment is projected to record the highest growth rate of 15.3% during the forecast period 2024–2031. The rapid growth of this segment is attributed to the convenience offered by e-commerce, the availability of greater discounts compared to offline stores, the growing preference for personalization, and a greater product selection experience.

By Process Category: The Unprocessed Category Segment to Dominate the Organic Food Market in 2024

Based on the process category, the organic food market is segmented into unprocessed, processed, and ultra-processed. In 2024, the unprocessed segment is expected to account for the largest share of the organic food market. The large market share of this segment can be attributed to factors such as the growing demand for organic products with minimal processing and consumer concern regarding additives in processed food.

By Packaging Type: The Frozen Organic Food Segment is Slated to Register the Highest CAGR During the Forecast Period

Based on packaging type, the global organic food market is segmented into fresh, frozen, canned, and dried. In 2024, the frozen segment is projected to record the highest growth rate during the forecast period 2024–2031. The rapid growth of this segment is attributed to the increasing demand for convenience food, the advancement in freezing technology, which improves the quality and taste of organic food, the growing global cold-chain sector, and rising demand from hotels, restaurants, QSRs, and the food service sector. Additionally, the busy lifestyles of consumers are further expected to drive the growth of the frozen organic foods market during the forecast period, as they provide a quick and easy meal option without sacrificing quality or nutritional value.

Geographic Analysis

North America to Dominate the Organic Food Market in 2024

Based on geography, the organic food market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, North America is expected to account for the largest share of 48.1% of the organic food market. The organic food market in North America is expected to reach $79.3 billion in 2024. North America's significant market share is mainly attributed to the presence of a large number of key players, the easy availability of organic foods, growing health & wellness and clean label trends, a well-established food sector, higher adoption of technological advancements in the food & beverage industry, and significant investments in the organic food sector.

However, Asia-Pacific is slated to register the highest growth rate of 12.6% during the forecast period of 2024–2031 due to growing organic farming, rapidly growing population and urbanization, rising disposable income and improving standard of living, growing focus toward the inclusion of healthy foods, and increasing awareness about the health benefits of organic foods. Additionally, government initiatives promoting organic farming and regulations supporting the organic food industry are further expected to support the growth of this market.

Organic Food Market: Key Companies

This report includes a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last 3 to 4 years. Some of the key players operating in the organic food market are Hain Celestial Group, Inc. (U.S.), General Mills, Inc.(U.S.), United Natural Foods Inc. (U.S.), Nature’s Path Foods, Inc. (Canada), Amy’s Kitchen, Inc. (U.S.), Organic Valley (U.S.), Whole Food Market Co-op (U.S.), Sunopta Inc. (Canada), Eden Foods, Inc. (U.S.), Newman’s Own Foundation (U.S.), Stonyfields Farm, Inc. (U.S.), Danone S.A. (France), Nestle S.A. (Switzerland), Clif Bar & Company (U.S.), and The Kroger Co. (U.S.).

Organic Food Industry Overview: Latest Developments from Key Industry Players

• In May 2024, REBBL, Inc. (U.S.) launched a ready-to-drink beverage, Organic Smoothie Starter.
• In January 2024, Tata Consumer Products Ltd (TCPL) (India) entered into an agreement to acquire 100% equity shares of Organic India Pvt. Ltd. (India), an organic herbal teas and health foods company.
• In October 2023, Great River Organic Milling (U.S.) launched a new line of “Better for You and Better for the Earth” specialty flours, hot breakfast cereals, and climate-friendly rice.

Organic Food Market Research Summary

Key questions answered in the organic food market report: