Organic Food Market Expected to Reach USD 440.30 Billion by 2031, Driven by Retail Expansion

As per the report published by Kings Research, the global Organic Food Market was valued at USD 184.15 billion in 2023. The market is projected to reach USD 440.30 billion by 2031, growing at a CAGR of 11.53% from 2024 to 2031.

The global organic food market is experiencing robust growth, driven by increasing health consciousness, growing concerns regarding food safety and environmental sustainability, and stringent government regulations and certifications.

Expanding into emerging markets, especially in Asia-Pacific, presents significant untapped potential for growth. Diversifying product offerings to include value-added and innovative organic products may attract new consumer segments. Collaborations with local farmers, NGOs, and government agencies to promote sustainable farming practices and establish transparent supply chains are key strategies for expanding market reach. Additionally, leveraging digital marketing and e-commerce platforms to reach a wider audience and provide transparent product information enhances consumer trust and loyalty in the organic food market.

Key Insights

• Based on product type, the fruits & vegetables segment accounted for the largest market share of 38.15% in 2023
• Based on sales channel, the online retails segment is estimated to register a CAGR of 13.55% between 2024 and 2031
• On the basis of region, North America led the market in 2023 with a valuation of USD 79.65 billion

Unlimeat Expands Its Reach in the US, Strengthening Plant-Based Options

October 2023: Unlimeat's expansion into the U.S. natural and organic market marked a significant milestone in the organic food industry. With its innovative plant-based meat substitute products, Unlimeat addressed the growing demand for sustainable and ethical food choices among health-conscious consumers. The company's entry into the US market offered more options for consumers seeking organic and plant-based alternatives. This expansion highlighted the increasing importance of plant-based options within the organic food sector, showcasing opportunities for companies to meet evolving consumer preferences and drive growth in the organic food market.

Retail Expansion to Drive Accessibility and Availability of Organic Food Products

The expansion of retail channels, such as online platforms, supermarkets, and specialty stores, plays a crucial role in driving organic food market expansion. Increased accessibility and availability of organic products through diverse retail channels cater to a wider consumer base, including health-conscious individuals. Online platforms offer convenience and access to a global audience, tapping into the growing trend of e-commerce in the food retail industry.

Supermarkets and specialty stores provide physical outlets for consumers to explore and purchase organic products, thereby enhancing visibility and consumer trust. This retail expansion boosts sales while promoting awareness regarding organic farming practices, certifications, and sustainability initiatives.

Tapping into New Consumer Segments to Present Significant Growth Opportunities

Diversifying organic product offerings beyond traditional food items presents a significant opportunity for market growth. By including ready-to-eat meals, snacks, and beverages under organic labels, businesses aim to attract new segments of health-conscious consumers. Ready-to-eat organic meals cater to busy lifestyles, snacks offer convenient options, and organic beverages respond to the growing demand for natural and healthier drink choices. This strategic product diversification increases revenue streams and strengthens brand loyalty by providing a comprehensive range of organic options that meet the evolving preferences of consumers across various lifestyle categories.

North America is Slated to Garner the Highest Valuation of USD 183.07 Billion by 2031

Based on region, the global organic food market is classified into North America, Europe, Asia-Pacific, MEA, and Latin America. North America is poised to achieve the highest valuation of USD 183.07 billion by 2031 in the organic food market, driven by increasing consumer awareness of health and environmental concerns. The region's well-established organic food industry, robust regulatory framework, and growing demand for organic products across various segments are aiding regional market growth.

Additionally, the growing emphasis on sustainable and ethical consumption practices aligns with consumer preferences in the region, supporting market expansion and investment in organic farming, processing, and distribution infrastructure to meet the rising demand.

Companies Focus on Launching Cutting-Edge Products to Expand Their Market Reach

The global organic food market reveals a fragmented landscape, featuring prominent companies including Danone SA, General Mills, Inc., Hain Celestial Group, Inc., Organic Valley, Nestlé SA, The Kraft Heinz Company, United Natural Foods, Inc. (UNFI), WhiteWave Foods Company, SunOpta Inc., Dean Foods Company, and others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their global business footprint and enhance their competitive position.