ORGANIC FOOD ON THE RISE IN THE USA
Increased awareness about the health benefits associated with the consumption of organic products has been one of the main factors in driving market expansion. In fact, in 2021, the global organic food and beverages market size was valued at USD 188.35 billion and is expected to expand at a compound annual growth rate (CAGR) of 13.0 % from 2022 to 2030.
It all began in 2020, during the pandemic when consumers shifted their food purchasing and consumption habits because restaurants were closed and home cooking became a nurtured practice. Despite having higher prices, organic food sales witnessed a spike in 2020 and the growth rate of organic food and beverages was the highest among all health and wellness categories.
The demand for organic ingredients has grown over the past few years, in order to improve overall health among consumers and an increased awareness regarding the harmful effects of synthetic ingredients. Several reports in the EU and USA have highlighted the risks associated with the use of foods that include the presence of synthetic chemicals such as pesticides and antibiotics. Furthermore, heightened concerns regarding artificial preservatives and additives have also contributed to reasons why consumers pay attention to a ‘clean label’ and their ingredients.
The European Commission and other Institutional bodies have contributed to help consumers understand the difference between falsely labeled products and legitimate ones. Specific guidelines have been issued in order to achieve the Organic Certification, barring the use of chemicals, pesticides, growth hormones, and other synthetic chemicals.
Another factor has been the rising regulatory support for organic farming methods which will surely influence the organic food & beverages market over the long term. Environmental awareness and a need to promote sustainable practices and values have all had an effect on the industry in general.
North America and Europe are the largest consumers of organic foods. Fruits and vegetables lead the way with a 40% share of the organic food revenue in 2021. Nonetheless, the consumption of organic meat, fish & poultry products is predicted to register the highest CAGR of 14.9% by 2030.
The organic beverages market is sure to grow exponentially as consumers opt for natural drinks over carbonated beverages owing to a wide range of health benefits. Non-dairy beverages such as soy, rice, and oat led the beverage segment in 2021.
The rising trend of online sales and subscription boxes for organic produce was significant in the last two years, and is expected to influence market growth. The rise of online groceries and online food delivery platforms coupled with the surge in adoption of smartphones will further enhance the trend.
The North American organic food & beverages market is expected to continue to grow steadily, due to the unique advantages associated with the consumption of Organic products. These include prominent values such as, eco-friendly, zero chemical and residue-free, and overall healthier products and lifestyle.