Global Organic Food and Beverages Market: Overview
Organic foods are grown without the use of synthetic additives, chemicals, genetic manipulation, and coloring agents, and need to satisfy the criteria set by the USDA National Organic Program. Organic foods and beverages are in high demand as they are healthy alternative to their traditional counterparts. As the world becomes more aware about the goodness of everything natural and products free from chemicals, the demand for organic food and beverages is growing at a fast pace. Some of the other factors boosting the market include growing health hazards due to inorganic food products, high income level, and improvement in organic farming practices.
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Global Organic Food and Beverages Market: Key Trends
Incidences such as the mad cow scandal in the U.S., Canada, and other countries have resulted in the questioning of using genetically modified foods. Such incidences also bring to light, the abuse of chemical fertilizers, pesticides, and insecticides in traditional farming practices. The result is a society that is more aware and concerned about such unhealthy food products and therefore seeking organic food and beverages. Although, expensive than non-organic products, organic food and beverages are increasingly being purchased and it has become a lifestyle for many upper middle class people in the world.
Retailers of organic food and beverages are recognizing the need to educate young families so as to ensure a long-term loyalty and this is expected to boost the global organic food and beverages market in the long run. Hotels and restaurants are also capitalizing on this trend and serving organic food and beverages to customers, further boosting the market. Manufacturers are attempting to develop products in an organic way and obtaining organic certification, thus attracting customers and furthering the growth of the industry.
Organic Food and Beverages Market: Market Potential
The success in the retail organic sector that offer organic food and beverages is creating huge opportunities for manufacturers to increase their sales. Many food and beverage companies are associating with organic food and beverage companies so as to enhance their brand equity and be linked to healthy platforms. Big names such as General Mills for instance, have purchased Small Planet Foods, which is a U.S. based company that grows, markets, and distributes organic food products. Coca-Cola acquired Odwalla, which is another American company that sells organic fruit juices, smoothies, and bars.
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Organic Food and Beverages Market: Regional Outlook
The key markets for organic foods and beverages have been Europe and North America traditionally, but today, countries across the globe are proving to be lucrative markets for these products. There is high demand for organic food and beverages in countries such as India, Argentina, China, Brazil, and Mexico, and thus, manufacturers are forced to expand their manufacturing base to these countries. This in turn is ensuring a steady development of the market. Of regions such as North America, Europe, Asia Pacific, and the Rest of the World, Asia Pacific is anticipated to hold promising growth opportunities in the organic food and beverages market. The region’s expected success in the market can be attributed to growing awareness and affinity for organic ingredients. The market in the Rest of the World is also expected to flourish in the coming years.
Organic Food and Beverages Market: Competitive Landscape
The global food and beverages market is fragmented with players such as Kraft Foods Group Inc., Groupe Danone SA, Starbucks, Whole Foods Market, Dean Foods Co., 365 Everyday Value/Whole Foods, Eden Foods, The Hain Celestial Group, Inc., Kellogg Company, Organic Valley, and Amy’s Kitchen Inc.
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