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Global Organic Food and Beverages Market: Rising Consumer Preference for Healthy Food Products to Create Promising Opportunities for Players

Posted on Dec 20, 2016

The global organic food and beverages market is extremely fragmented and competitive in nature with a high number of players operating in it, states a research study by Transparency Market Research (TMR). The leading players operating in the global organic food and beverages, including Starbucks, Hain Celestial Group Inc., Organic Valley, and Amy's Kitchen Inc. are collectively dominating the market. These players are focusing on expanding their product portfolio in order to enhance their penetration across the globe and boost sales. In addition, the improvement of distribution network and channels are projected to contribute significantly towards the overall growth of the market throughout the forecast period. 

As per the research study by Transparency Market Research, in 2015, the global market for organic food and beverages was worth US$102.0 bn and is projected to reach a value of US$187.85 bn by the end of 2019. The market is estimated to register a progressive growth rate throughout the forecast period. 

Rising Inclinations towards Healthy Lifestyle to Bolster Asia Pacific Organic Food and Beverages Market 

From a geographical perspective, North America led the global organic food and beverages market and is expected to account for a massive share in the next few years. The rapid growth can be attributed to the presence of a large number of players operating in this region. In addition, the growing awareness among consumers concerning the healthy lifestyle is anticipated to encourage the growth of the market in the coming years. However, Asia Pacific is projected to grow at a robust pace, thanks to the increasing health conscious populations and their rising disposable income. 

On the basis of product type, the organic fruits and vegetables segment led the global organic food market and is projected to continue its dominance in the coming years. On the other hand, the organic coffee and tea and non-diary beverages segments collectively held a massive share of the global organic beverages market in the last few years. The rising awareness regarding the benefits of consuming organic products and the easy availability are some of the primary factors estimated to encourage the growth of these leading segments in the overall market. 

Improved Distribution Network to Augment Global Organic Food and Beverages Market 

The changing perception of consumers towards organic food for a healthy lifestyle is leading to a high demand for these products across the globe. In addition, the focus of key players on enhancing their distribution network in order to provide easy availability of products is anticipated to supplement the growth of the market in the coming years. The strict government regulations and initiatives supporting the organic way of life is likely to generate promising opportunities for leading players in the market. 

Furthermore, the high amount being spent by players on advertising campaigns and marketing activities and the rising disposable income of consumers, especially in emerging economies are expected to fuel the growth of the global organic food and beverages market in the forecast period. 

High Cost of Organic Products to Curtail Growth of Global Market 

The global market for organic food and beverages, on the other hand, is estimated to observe several challenges, such as high cost of products in comparison with other conventional food. This factor is likely to restrict the growth of the market in the coming years, says a TMR analyst. Nonetheless, the rising focus on research and development activities in order to introduce new products is predicted to contribute towards the development of the overall market. 

This information is based on the findings of a research report published by Transparency Market Research (TMR), titled “Organic Food (Product Type - Fruits and Vegetables, Meat, Fish and Poultry products, Dairy products, Frozen and Processed foods) and Organic Beverages Market  - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 - 2019.” 

The global organic food and beverages market has been segmented as below: 

Global Organic Food Market, by Product Type 

  • Organic Fruits & Vegetables
  • Organic Meat, Fish & Poultry Products
  • Organic Dairy Products
  • Organic Frozen & Processed Food
  • Others 

Global Organic Beverages Market, by Product Type 

  • Organic Non - dairy Beverages
  • Organic Coffee & Tea
  • Organic Beer & Wine
  • Others 

Global Organic Food and Beverages Market, by Geography 

  • North America
  • U.S.
  • Other
  • Europe
  • Germany
  • Other
  • Asia Pacific
  • Japan
  • China
  • Other
  • RoW
  • Brazil
  • Other

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Transparency Market Research (TMR) is a market intelligence company, providing global business information reports and services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants, use proprietary data sources and various tools and techniques to gather, and analyze information. Our business offerings represent the latest and the most reliable information indispensable for businesses to sustain a competitive edge.

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